How Does Car Insurance Work in the Philippines?

Written by Marc Adrian

Getting car insurance is the only way you can protect yourself from the financial risks that come with owning a car. There are millions of cars in the Philippines that share the roads with you, and several storms hit the country each year. If you don’t protect your vehicle and yourself from the bad elements and the unexpected, it can cost you a lot of pain and suffering. Not to mention a lot of money.

You never know when you’ll figure in a car accident, or when the waters will rise after days of endless rain, or when you’ll suffer from physical injuries because of a vehicular accident. You never know when criminals will fancy your car and steal it away. Having to choose a reputable car insurance in Philippines means you are financially protected from these unforeseen events. Whether it’s car damage, car theft, or a trip to the emergency room, having a car insurance coverage lets you breathe a little easier and sleep more soundly at night.

How Car Insurance Works

A car insurance is a contract between the insurance company and yourself that you will pay the premiums and the insurance company will pay any losses as declared in your insurance policy. No matter how cautiously and defensively you drive, car accidents can still happen. When you buy car insurance, you are buying yourself security.

The kind of insurance you prefer, what kind of vehicle you drive, and how old the vehicle is will determine the kind of policy you will get. Car insurance companies offer different kinds of insurance coverage depending on your needs. Most insurance companies offer comprehensive insurance with acts of nature. This covers own damage and malicious acts, physical injuries, property damage, and personal accidents as well.

Car insurance companies in the Philippines can insure vehicles that have a market value of not lower than ₱250,000. For vehicles that don’t meet this requirement and are more than eight years old, it will depend on the insurance company’s discretion. Keep in mind that it will definitely cost more to insure an older car compared to a brand new one.

If you’ve decided to get one, choosing the right car insurance provider can be a daunting task. You can start off slowly as you compare car insurances first to find out which one fits your need, as well as your budget.

Filing Insurance Claims

If you figure in a road accident, you need to report it to the police and your insurance company first. Do not negotiate, admit liability, offer to pay, or sign anything without the go-ahead from your insurance company. This is to protect you should the other party is found to be legally at fault.

You can claim the insurance by presenting a copy of your policy and official receipts for your insurance premiums. Include the police report affidavit, photographs showing the lost parts or damage, as well as photographs of the license plate and the whole car.

Depending on the insurance company, you may also be required to present a notarized affidavit. You will also be asked to present photocopies of your driver’s license, vehicle registration certification, and official receipts of both. If your vehicle is covered by a comprehensive car insurance, you may also be required to send an estimate for repairs.

If your car insurance covers it, you can reimburse for medical expenses in the event of passenger or personal injury or death. You will need to submit original copies of medical certificates, medical prescriptions and receipts, as well as photocopies of birth, marriage, or death certificates.

Being protected in advance is a very welcoming thought especially when confronted with uncertain situations. There’s no certainty as to when it can happen and being insured will provide that needed peace of mind amidst possible financial losses. If you’re ready to get one, also consider these additional tips on car insurance secrets that can save you money, which could help you make your final decision.