Property Damage or Voluntary Third Party Liability (VTPL) - covers damages caused by your vehicle to other people’s properties in the event of an accident.
In extreme cases like car robberies, fires, or explosions, your car insurance will handle all repair expenses. Own Damage/Theft - covers car damage, loss, and damage/loss of declared accessories and spare parts.Below are the most common car insurance coverages offered in the Philippines:Ĭomprehensive Car Insurance Coverage - protects your vehicle from a wide range of causes, from motorist accidents and property damage to Acts of Nature and vandalism. There are other coverages that you can get for additional protection but note that this will also cost you more.
COMPARE AUTO INSURANCE RATES DRIVER
Insurance providers offer several options that consider situations a driver needs protection from with comprehensive car insurance coverage as your best bet since it covers most of your needs. When a vehicle is marked as totaled by the insurance provider, it means that the cost of repairs will exceed the vehicle’s market value.Īside from CTPL, which is a requirement of the Land Transportation Office, car insurance coverages aim to protect you, your passengers, and your vehicle from road accidents or incidents that will cause harm or poses a threat. This is an added cost to your premium due to an at fault accident, filing several claims, or filing for an expensive claim.Īlso called write-off. This is a type of add-on to your vehicle insurance if you want your coverage to include car issue support while on the road like towing, tire replacement, battery jumpstart, lockout services, and fuel delivery. This is the amount that you’ll pay to your insurer for your vehicle insurance policy. Depending on the type of insurance you chose, it will indicate the specifics of the agreed or market value that the insurance will pay for and the participation fee. This document details the coverage of your motor insurance such as the type of coverage and add-ons, and includes the pricing related to it. The amount that you need to pay out of your pocket before the insurance provider pays for the rest of the expenses. This is based on your car’s make, model, mileage, age, variant, and overall status at the time of the incident.Ī type of coverage that provides financial assistance for legal fees in case you get into an accident that will be taken to court.Ī type of coverage that provides transportation allowance while your car is being repaired. The amount the insurance provider will pay if your car gets totaled or stolen. This is only applicable to vehicles older than 3 years and is not applicable to total vehicle loss. The amount will depend on the value of the new parts when it was damaged or lost compared to its value when the vehicle was purchased. You can increase your deductible fee if you want to lower your insurance premium.Ī type of participation fee for your car’s damaged or lost parts due to an accident or loss. Some policies don’t include deductibles and for those that do, it should follow the Motor Tariff’s minimum deductible fee. It’s also one of the most important because this serves as proof that your car is insured.Ī request filed by the insured and sent to the insurer to cover or reimburse expenses from damages or loss of your car or other coverages as stated in your insurance policy.Ī type of participation fee that involves a car accident or loss and an investigation proves that you’re at fault. One of the documents you’ll receive as part of your motor insurance policy. This is a fixed amount that you and the provider have agreed on at the start of your motor insurance policy term. This is a fixed amount that you and the provider have agreed on at the start of your policy term. A good example would be bystander/s and/or person/s in the other car/s involved, or your passengers that aren’t your relatives or employees. This refers to the other person/people involved in the accident that’s not the 1st party, the 2nd party, or relatives or employees of the 1st party. This is the insurance company where you applied for car insurance. This is the owner of the vehicle and the insurance policy.Īlso called Insurer. Below is a list of commonly used car insurance terms you’ll encounter:Īlso called the Assured. It might also be hard to recall your car insurance agent’s explanation of the terms but we’re here to refresh your memory.
It’s easy to get lost in a sea of unfamiliar words when you first read your motor insurance policy.
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