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How Car Insurance Works in the Philippines

Car insurance gives financial protection to vehicle owners in case of unforeseen incidents like auto damage, bodily injuries caused while operating the vehicle, and car theft. Once issued a policy, the insurance protection takes effect.

In the Philippines, car insurance companies can accommodate cars in good working condition, and with a market value of not less than P250,000.00. The age of the cars qualified for insurance depends on the insurer?s discretion.

If the owner of the insured vehicle gets into an accident, a claim is processed and any deductibles are paid. The insurance company then reimburses or fully covers losses and liabilities, depending on the situation.

Below is a sample coverage table for a car that is near the minimum market value. In the table, the maximum coverage is set to P 250,000.00. Because all vehicles in the Philippines are legally required to secure a Compulsory Third Party Liability Insurance (CTPL), let as assume that the insured is also covered up to P100,000.00 of CTPL.

Comprehensive Insurance with Acts of NatureAmount
Deductible / participation2,000
Cover: Own Damage / Theft250,000
Cover: Acts of Nature250,000
Cover: Bodily Injury200,000
Cover: Property Damage200,000
Cover: Personal Accident250,000

The sample gives the limit amount. This is the maximum amount the insured can claim for each coverage type. The maximum amount is determined by the value of the vehicle. The higher the car?s value is, the higher the maximum amount will be, since it aims to cover most of the expenses in case the car is stolen.

The Deductible, or the participation, is what is required from the insured to be paid per claim. In general, one accident or incident is one claim, provided that the total damage or loss is not more than the deductible. If the damage is less than or equal the amount of the deductible, the cost is covered only by the insured.

What requirements do you need to get car insurance?

CTPL is needed to get your vehicle registered at the Land Transportation Office. Below is a list of the basic things needed to get comprehensive or additional coverage:

Brand New:Second Hand:Owned vehicle:
OR and CR or Official Receipt and Car Registration (if mortgaged)OR and CROR and CR
Invoice (usually from dealer)Chassis/Engine NumberChassis/Engine Number
Chassis and Engine NumberDead of salePhotos of the car (side, back, front)
Conduction StickerPhotos of the car (side, back, front), License/Valid IDLicense/Valid ID
License/Valid ID
What responsibilities do the insured and the insurer have?

Auto insurance is a product that gives peace of mind to car owners. And just like any other security product

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