A car insurance policy is a contract between you and the insurance company in which you agree to pay the premiums and the insurance company agrees to compensate any damages as stated in your policy. Car accidents can happen no matter how cautiously and defensively you drive. When you get automobile insurance, you are purchasing security for yourself.
How does car insurance work Philippines?
A car insurance policy is a contract between you and the insurance company in which you agree to pay the premiums and the insurance company agrees to compensate any damages as stated in your policy. In the Philippines, car insurance companies can cover vehicles with a market value of up to $250,000.
Is car insurance mandatory in Philippines?
In the Philippines, having car insurance is a legal requirement; in fact, the government compels you to obtain Compulsory Third Party Liability (CTPL) for your vehicle when you register it. CTPL, on the other hand, exclusively addresses some areas of insurance. It only covers the death or injury of a third party, not the vehicle’s own damages. With that in mind, it’s critical to ensure you have automobile insurance, especially if it’s a brand new vehicle. Here’s what you’ll need if you want to get your hands on an excellent insurance plan.
Can I claim insurance if I damage my own car in the Philippines?
Different documentation will be required by most automobile insurance carriers. Depending on the type of claim, insurers may request the following general documents:
On filing an Own Damage Claim
When your own car is damaged on the road, you must make an individual damage claim. With your insurance, you will be covered for the cost of repairs and replacement of your car’s damaged parts.
If you’re making an own-damage claim, you’ll need to contact your car insurance company and ask for a representative to come out and investigate the accident scene.
Car insurance companies maintain a list of authorized auto repair shops to which you can bring your vehicle for a cost estimate. The insurance company will provide a Letter of Authorization (LOA) to initiate the repairs after the estimated sum is given.
- Damage to the vehicle while driving as a result of a collision with another vehicle, an electric pole, or anything else that causes damage to your vehicle in regular and legal circumstances.
- Fire-related damage to the vehicle, such as an exterior explosion or self-ignition.
However, there are specific instances in which you will be unable to register a claim. Most car insurance companies will not enable you to file an own-damage claim if you meet the following criteria:
- Natural calamities such as floods and earthquakes cause significant damage (unless you have an act of nature coverage).
Requirements for filing own damage claim in the Philippines
The insurance company’s notarized declaration of the accident or a police report
Report of traffic-accident investigations in Metro Manila, Metro Cebu, or Metro Davao
On Filing for Excess Bodily Injury and Death Claims
If you cause a car accident that causes bodily harm or death to another person, your third-party insurance may be able to help cover the cost of the other person’s medical bills.
You must contact your car insurance company and request that a representative assist you in gathering all of the necessary documentation.
Most car insurance providers will cover the reimbursement up to the policy’s excess liability limit. Some insurance policies may not cover drivers or passengers who are involved in an accident.
Requirements for filing excess bodily injury and death claims
- The insurance company may provide a police record or a notarized statement documenting the car collision.
- In the event of death, certified accurate copies of a death certificate as well as funeral expenses are required.
On filing TPL claim
Compulsory Third Party Liability (TPL) insurance is a type of car insurance mandated by Philippine law for all vehicle owners. TPL covers medical expenses up to Php 100,000 for injuries caused by a third party for which you are responsible.
TPL imposes restrictions on the policy. TPL does not provide coverage to insurers in the following situations:
On Filing Third Party Property Damage Claim
You can file a Third Party Property Damage claim if you’re at fault and legally responsible for the damage you caused to someone else’s car.
Rather than paying out of cash, your third-party insurance functions as your liability and pays for the other party’s repair costs.
- a photocopy of your official receipt and the insured’s and third-registration party’s certificates
On Filing Theft Claim
If you have comprehensive automobile insurance that covers theft, you can file a claim if your car is stolen or some parts of your car are stolen.
You will be compensated for a replacement at fair market value if you have theft coverage. If this occurs, contact the nearest police station right once to report the incident.
After that, you or a representative from your car insurance company must go to Camp Crame to file a formal alarm report.
Requirements for filing theft claim
- a photocopy of your official receipt and the stolen vehicle’s registration certificate
- Authenticated inspection record photocopy with stenciled engine and chassis numbers
Along with the documents listed above, keep an original copy of the Certificate of Non-Recovery. Finally, before the insurance company can process your claim, you must pay the deductible.
On Filing Acts of Nature Claim
There are a variety of reasons why you might need to file a vehicle insurance claim besides collision. You may be able to file a claim if your car is damaged by floods, typhoons, earthquakes, or other natural disasters, depending on your insurance coverage.
It is rather simple to file a car insurance claim, particularly if the damage was caused by Acts of Nature, because insurance companies have actual documentation of a natural disaster. All they ask is that you bring your automobile to their authorized repair facility for an inspection.
On Filing Riots, Strike & Civil Commotion claim
Your car is covered for damages caused by riots, strikes, and civil disturbances if you have Riot, Strike, Civil Commotion coverage. Terrorism is covered by several insurance policies.
This form of insurance is typically an optional add-on that you can choose to acquire or not.
On Filing Towing Reimbursement claim
In the event of a vehicle breakdown, roadside help and towing services are necessary. Towing reimbursement coverage assists you in reimbursing towing charges.
If your insurance allows for it, you can file a refund claim. However, you must first use the towing service and pay for it before receiving compensation.
How is insurance for car calculated?
When you buy a new automobile and receive insurance for it, the IDV is determined based on the new car’s price, which is its ex-showroom price. The size of the engine has an impact on the insurance premium you must pay for third-party coverage.
What is participation fee?
When you file a claim with your automobile insurance company, you must pay a participation fee before the insurer will cover the rest of the claim value. One of the conditions for most car insurance claims is the payment of a participation fee.
You must “participate” in the cost of your automobile insurance as a policyholder. In essence, this implies you’ll be responsible for a portion of the costs of fixing your damaged vehicle following an accident.
Is it compulsory to pay car insurance?
In India, as well as the rest of the world, having your car insured is a legal requirement, not a choice. Before a car can drive on the road, it must be covered by an appropriate insurance coverage, according to the Motor Vehicle Act of 1988. The Motor Vehicles Act of 1988 covers legal requirements such as car registration, having a valid driver’s license on hand at all times, and having insurance coverage. A vehicle must have at least third-party legal liability insurance before it may be driven on a public road as a minimum requirement in terms of insurance. A third-party legal liability policy will cover the expense of any legal obligations that may emerge if your car is involved in an accident in which a third person is harmed or property is damaged by a third party.
What is the best car insurance company?
The finest vehicle insurance provider is determined by your needs and financial resources. Your rates will vary depending on your age, automobile type, annual mileage, state, credit score, and a variety of other criteria. You should search about and compare possibilities to determine who can provide you with the best premium for your need.
Is it better to pay in full or pay car insurance by installment?
In general, if you can pay for your coverage in full, you’ll pay less. However, if paying a huge lump sum upfront puts you in a financial bind for example, if you can’t afford to pay your vehicle insurance deductible – monthly car insurance payments are definitely a better alternative for you. Examine your budget to see what you can afford.
How do I claim car insurance Philippines?
When you file a claim under your Compulsory Third-Person Liability (CTPL) policy, you’re asking your car insurance company to cover the medical expenses of a third party who was hurt or died as a result of an accident caused by your vehicle (up to PHP 100,000).
This does not cover the driver or any passengers in your automobile at the time of the accident, as well as damage or loss to the third party’s vehicle or other property.
What are the types of car insurance in Philippines?
Let’s begin with the fundamentals. Compulsory Third Party Liability (CTPL) and Comprehensive Car Insurance are the two types of motor insurance (Compre). It’s critical to establish right away that both categories are equally significant. While it is true that you only need one insurance policy, it is highly advised that you purchase both to better protect yourself and your vehicle.
CTPL insurance, unlike comprehensive insurance, is required in the Philippines. It is also the simplest and least expensive sort of vehicle insurance available in the United States. Your insurance company will issue you a Certificate of Cover once you purchase a CTPL policy.
How do I claim car insurance without police report?
No insurance company will consider your claim without a FIR, and no FIR will be issued if you do not notify a cop. As a result, you must receive your FIR copy as soon as possible. Lack of critical information After an accident, most individuals are preoccupied with gathering information such as the driver’s name, license number, and so on.