Welcome to the topic “What Is Car Insurance and Why Do You Need It?“
You may hear the phrase ‘Car Insurance’ thrown around and may even have a general idea of what it entails. Yet, you may not know exactly what it means.
Similarly, people always talk about just how vital car insurance is in the Philippines and that you need to get it – but you may find yourself asking, why?
We at Perla Insurance, being the best insurance company in the Philippines, want to educate our customers on such topics. And, if you find yourself asking such questions, then you have come to the right place!
In this article, we will talk about what is car insurance and exactly why you need it. We will also cover some essential topics regarding car insurance, so you can easily understand both TPL Insurance and Comprehensive Car Insurance better.
What Is Car Insurance and Why Do You Need It?
Let us begin from the basics. What is car insurance? In this section, we will give a detailed explanation of car insurance.
Car Insurance is an insurance policy to protect the ownership and use of your car against the risk of everyday life such as collision, theft, or any accidents caused to other people, other property, to your own car, driver, or passengers.
Basically, the purpose of vehicle insurance is to protect you and your loved ones against the risks and damages of driving a car on a regular basis. It also protects you against the hassle and financial losses that could come up from such unforeseen accidents.
Car insurance is a legal requirement because of your responsibility for any damage you cause. Thus in order to protect yourself and your property, car insurance saves you the time, money and the hassle that could arise from any damage your car does.
A Car Insurance policy is a contract between a customer and the insurance company. It specifies the risks the customer wants covered, and correspondingly specifies the amount for each type of coverage he wishes to avail of.
As in any contract, fully paying the premium for the policy is a requirement to make the contract effective.
Car insurance offers more than just cover for your vehicle in the event of an accident. It also safeguards you against financial and medical liabilities, and having to deal with unfamiliar circumstances resulting from the accident.
Driving without insurance may result in a hefty ticket, a suspended license and a lack of financial protection in the case of an accident.
What Are The 6 Types of Coverage For Comprehensive Car Insurance?
Now, you may have heard about different possible coverage for comprehensive car insurance, but you may not know exactly what they entail.
That is why Perla Insurance, being the best insurance company in the Philippines, wants to increase this awareness and make this essential knowledge accessible to the general public.
We, at Perla Insurance, offer 6 different comprehensive car insurance coverage to cater to all your auto insurance needs.
To easily illustrate the differences between each one, we divided the list of coverage into two parts. Coverage 1, 2 and 3 are mainly about protection caused to the vehicle: may it be your own or the other’s car or property. While coverage 4, 5 and 6 on the other hand, are protection caused to people: either other people or for your own driver or passenger.
Here’s a brief description of our six possible coverage for comprehensive car insurance:
1. Loss and Damage
Loss and Damage covers your car for theft and damage due to your own or others fault. An example of this is if your car is stolen or damaged by yourself or another, then your car will be covered by Loss and Damage.
2. Acts of Nature
Acts of Nature covers your car against typhoons, floods, and earthquakes. An example of this is if your car is damaged due to flooding or if huge debris falls on your car due to an earthquake or typhoon, then your car will be covered by Acts of Nature.
3. Third Party Property Damage
Third Party Property Damage covers damage to another vehicle or property. An example of this is if your car hits another car or a lamp post, then the other car or the lamp post will be covered by Third Party Property Damage. Take note, this does not cover the damage inflicted on your own car for this particular coverage, since that falls under the Loss and Damage coverage.
4. CTPL/TPL
Compulsory Third Party Liability is the most affordable and required insurance – limited protection caused to other people, medical and death. This car insurance coverage is a requirement of the Philippine government to all car owners.
It is part of the prerequisites for your car registration every year. An example of this is if you bump another person, that person will be covered by CTPL. However as we mentioned it is only limited protection, so its coverage amount is only up to P100K.
5. Excess Bodily Injury
Excess Bodily Injury covers excess liability over CTPL coverage. Therefore, it covers the exact same coverage as CTPL which is protection caused to other people, medical and death, but is an add-on option. So in case you want to be covered for a possible future claim that is higher than P100K, then you should avail of Excess Bodily Injury.
6. Auto Personal Accident
If Excess Bodily Injury covers medical and death caused to other people, Auto Personal Accident on the other hand covers the medical and death of your own driver and passenger in your car.
Our Suggestion
We, at Perla Insurance, suggest that you avail of all 6 coverage for your own peace of mind, and to save you hassle, financial burden and unfamiliar circumstances in case of an accident. You may ask, why do I need all the coverage?
Let me give you a scenario, for example you only avail of Loss and Damage. Then all of a sudden there’s an earthquake, and huge debris pieces fall and damage your car. Do you think your car is covered? The answer is unfortunately- no.
This is because the damage was caused by a natural calamity and not by your own or another’s fault. Therefore you should have also availed of Acts of Nature to protect yourself from a scenario such as this one.
The same goes if you only avail of CTPL or Excess Bodily Injury, and then you get into a huge car accident. You know CTPL and Excess Bodily Injury only the other’s driver and passenger. So if ever you are wounded or hurt in any way due to the car crash, you will have to shoulder and pay for your own medical bills.
This is why we suggest that you avail of all 6 coverage. This is so you feel secure knowing you are covered for all possible risks. You wouldn’t want to be forced to spend huge chunks of your hard earned money during the time of an accident.
What is the Suggested Amount for the 6 Types of Coverage in Comprehensive Car Insurance?
Now, all this technical talk aside – let’s get to the real deal. That’s right, in this section, we’ll be talking about money.
When getting any form of investment, especially something as important as car insurance, it’s good to do the numbers beforehand so that you know what you are getting into.
This information is also necessary so you know where you are investing your hard earned money on, and weighing the benefits in the long run, especially when you do run into an accident.
At Perla Insurance, we provide the best car insurance in the Philippines. We also believe in transparency and want to keep an open and honest relationship with our clients.
On that note, here are our suggested amounts for the six types of coverage in comprehensive car insurance:
1. Compulsory Third Party Liability (CTPL) – 100K as required by the law
2. Loss and Damage – Fair market value of your vehicle based on the latest transacted price
3. Acts of Nature – Fair market value of your vehicle
4. Third Party Property Damage – 100K or higher in increments of 50K (Ex. 100k, 150k, 200k)
5. Excess Bodily Injury – 100K or higher in increments of 50K (Ex. 100k, 150k, 200k)
6. Auto Personal Accident – 10K per passenger and driver with 2k medical or higher as required
If you really think about it, the cost you invest in your car insurance is so minimal versus the unnecessary expenses and hassles when you don’t have insurance.
So what are you waiting for? Insure today to protect your peace of mind.
Get one or all of the coverage available! Please tell us your preferred coverage, and we will get back to you with insurance your quote in no time! With Perla Insurance, know that you are our number one priority.
YouTube
As one of the best insurance companies in the Philippines, Perla Insurance would like to keep our audience educated on important insurance-related matters as this vital information can be lifesaving.
We have a series on YouTube called Perla Cares, where we make bite-sized animated videos that can be easily comprehended by our viewers, and we explain these crucial concepts in easy wordings and phrases.
To watch our videos on similar topics, check out the links below:
Remember to leave more questions that you would like answered in the comments section so we can keep our viewers informed on the topics that they demand.
Also, don’t forget to check us out on Facebook at PerlaInsuranceOfficial for more exciting and interactive content as we are putting a higher focus on community engagement.
At Perla Insurance, we genuinely care for our customers, and we strive to prove that we provide the best car insurance in the Philippines through community-driven efforts and by putting you first.
Have any questions regarding the topic What Is Car Insurance and Why Do You Need It? Feel Free to comment below.
Also Read: What Do You Do When You Meet An Accident?
Hey there! Now, my office mate just got his annual bonus and I’m so happy for him. He told me that he plans to use that money to buy a new car pretty soon. I really like it when you said that it’s better to opt for insurance coverage for any natural related incident as well. I’ll recommend this article to him so he’ll select the right policy later.
My son and his housemate have been sharing their own savings to get a secondhand car which will ease their daily commute to college. In my opinion, they should refer to a professional so they can purchase a suitable policy for the vehicle afterwards. Thanks a lot for reminding us to consider an insurance coverage related to natural disaster as well.
OMG! I feel super excited the moment you pointed out that there are indeed certain types of insurance coverage that can be applied in case we become victims of a natural disaster. I’ll make sure my cousin refers to an expert first before taking any further action afterwards. While driving through the forest last week, an old tree suddenly collapsed on her car which have caused slight damage on its front side.
I agree that car insurance is a legal need because you are liable for any damage you cause. My relative recently purchased a new car and wishes to obtain insurance. Thank you for the article, and I will pass your site to him so that he may locate the best vehicle insurance company.
Your argument about how an insurance policy must provide reasonable compensations if our vehicle sustains some kind of damage due to natural disasters was so true. One of the janitors at my office is quite hesitant to get himself a new car because he lives at a flood-pone area for the time being. I’ll ask him to keep this info in mind before signing any policy soon after.
Getting car insurance is essential because this policy protects the ownership and use of your vehicle against the risk of everyday life such as collision, theft, or any accidents caused to other people, other property, your car, driver, or passengers. This a legal requirement car insurance saves you the time, money, and hassle that could arise from any damage your vehicle does.
I like that you discuss the importance of getting car insurance . This is essential because this policy protects the ownership and use of your vehicle against the risk of everyday life such as collision, theft, or any accidents caused to other people, other property, your car, driver, or passengers. This a legal requirement car insurance saves you the time, money, and hassle that could arise from any damage your vehicle does.
I appreciate that you talk about car insurance is essential because this policy protects the ownership and use of your vehicle against the risk of everyday life such as collision, theft, or any accidents caused to other people, other property, your car, driver, or passengers. This a legal requirement car insurance saves you the time, money, and hassle that could arise from any damage your vehicle does.
I appreciate that you talk about the importance of getting car insurance. That is essential because this policy protects the ownership and use of your vehicle against the risk of everyday life such as collision, theft, or any accidents caused to other people, other property, your car, driver, or passengers. This a legal requirement car insurance saves you time, money, and hassle-free.
Thanks for explaining that car insurance is an insurance policy to protect the ownership and use of your car against the risk of everyday life such as collision, theft, or any accidents caused to other people, other property, to your vehicle, driver, or passengers. A legal requirement because of your responsibility for any damage you cause. Car insurance saves you the time, money, and hassle that could arise from any damage your car does.
I appreciate that you explain that car insurance is an insurance policy to protect the ownership and use of your car against the risk of everyday life such as collision, theft, or any accidents caused to other people, property, vehicle, driver, or passengers. A legal requirement because of your responsibility for any damage you cause. Car insurance saves you the time, money, and hassle that could arise from any damage to your car.
I want to say a very big thank you for sharing this post, as it contains all the needed information I need for my research. Thanks again for sharing.
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I like that you explained that car insurance is an insurance policy to protect the ownership and use of your car against the risk of everyday life such as collision, theft, or any accidents caused to other people, other property, your vehicle, driver, or passengers. A legal requirement because of your responsibility for any damage you cause. Car insurance saves you the time, money, and hassle that could arise from any damage your car does.
I thought it was intriguing when this article mentioned that your automobile will be covered by Acts of Nature if it is damaged by flooding, or if significant debris falls on your car as a result of an earthquake or typhoon. My location has extremely erratic weather. I must locate automobile insurance that will pay for my natural disaster loss.
As a prospective car buyer, I wanted to learn more about auto insurance and started to do some research online. That’s how I got here. It’s quite beneficial that you indicated that insurance coverage would be useful if we were in an accident and had injuries or disabilities, as it would cover the financial loss. This is fantastic information! Thank you; I’ll definitely get vehicle insurance once I get my car.
It was great when you indicated that the most affordable and necessary insurance is Compulsory Third Party Liability. My relative recently purchased a new vehicle and is attempting to obtain insurance. I appreciate the article, and I’ll let him know about your page so he can locate the best auto insurance provider.
Thanks for elaborating how car insurance not only protects you from accidents, but also safeguards you against other liabilities. My sister hates flying so she uses her car wherever she wants to go regardless if it’s out of the state or not. Currently, she’s thinking about nationwide car insurance coverage to put her mind at ease whenever she’s out on the road.
I like how you mentioned that car insurance protects you from having to cope with unusual conditions brought on by the accident, as well as financial and medical responsibilities. My father just bought a new car and he’s wondering what type of insurance is the best one for him that will safeguard his usage of and ownership of his car from danger. Thank you for the information about Car Insurance and its types of coverages, this will surely help my father decide.
Excellent article that covers all elements of vehicle insurance. It’s fantastic that you noted that auto insurance covers third-party bodily injury, which covers third-party medical costs during accidents, saving us money. As a new car owner, I’ll keep this in mind and contact an agent as soon as possible. Thanks.
I had no clue that it was a good idea to run the numbers before purchasing any type of investment, especially something as crucial as auto insurance so that you are aware of what you are getting into. I will be sharing this with my boyfriend who just purchased a convertible last week. I feel like having auto insurance will make him more at ease and worry-free when driving the thing.
I’m glad you talked about how car insurance can protect you from financial losses due to unexpected accidents. My 18-year-old son just bought his first car last week. I want to make sure he is protected financially, so this week, I’ll help him look for the best car insurance policy for his needs.
I now understand that car insurance coverage safeguards the ownership and usage of your vehicle against risks associated with daily life, such as collision, theft, or any incidents. I’ve been telling my friend who just bought a new Tesla the same thing yesterday. Thanks for validating my opinion about how much insurance is valuable.
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It’s great that you elaborated on how it’s a good idea to run the numbers before investing in anything, especially something as crucial as auto insurance so that you are aware of what you are getting into. This will be useful for my boyfriend who just recently purchased a car. To ensure that he’s safe from any risk once any accidents occur, I’ll advise him to acquire auto insurance coverage that’s best for him.
I now understand that it’s wise to run the numbers before purchasing any kind of investment, especially something as significant as auto insurance so that you are aware of what you are getting into. My boyfriend has been looking into an auto insurance policy for his new Tesla so I will make him read about this first. I sure hope he gets the coverage his car needs since he spent so much on it.
It’s awesome that this article talked about how it also protects you from having to cope with unusual conditions brought on by the accident, as well as financial and medical responsibilities. My husband just bought our son a car as a gift for his birthday. So I think it will be beneficial to get auto insurance for him so he can have coverage for his car when an accident ever occurs.
When I go through this article, I think of my cousin who has decided to get herself a brand-new car next year. I don’t know if I could thank you enough for showing us that any insurance coverage we prefer for our vehicle should also include protection against damages caused by natural disasters. She should be reminded about this before choosing a policy sooner or later.
My son just received his driver’s license and is asking if he can have a car. Because he has been a good brother to his siblings, my husband and I are planning to buy him a used vehicle. We are now looking for an auto insurance provider to help us secure one for our son. As you mentioned, vehicle insurance aims to protect you and your loved ones against the risks and damages of driving a car regularly.
I’m delighted you emphasized that the goal of car insurance is to shield you and your loved ones from the dangers and losses associated with routine automobile use. Now that I heard about that, I can finally look into car insurance and which type to get. I heard a good insurance company offers auto insurance quotes so I’ll be looking into that.
It’s awesome that this article talked about how car insurance serves as a safeguard against risks associated with owning and operating a vehicle. My coworker will finally have enough money to buy a vehicle next month, and I couldn’t be happier for her. However, I must let her know about this so that she would ultimately choose proper car insurance.
I had no idea that doing the math before making any kind of investment was a smart idea, especially for something as important as vehicle insurance so that you know what you are getting into. I’ll discuss this with my partner, who just last week bought a convertible. I believe that having auto insurance will let him drive the vehicle more comfortably and worry-free.
I’m glad you made it clear that the purpose of vehicle insurance is to protect you and your loved ones from the risks and losses involved with regular car use. I can finally research vehicle insurance now that I’ve heard about it and decide which type to purchase. I’ll be looking into it because I heard a reputable insurance provider gives vehicle insurance rates.
What got me was the part about damages from acts of nature like flooding or if huge debris falls on the car during a storm or typhoon. This is the most likely scenario for the company’s truck since the office is located in a catch basin. I’ll point this out to the boss to convince her to get the truck insured.
You made a really nice point about how it’s wise to do the figures before making any kind of investment, especially one as significant as auto insurance so that you are aware of what you are getting into. This is exactly why I think car owners should do extensive research first before getting auto insurance. They can also get in touch with an insurance agent who can guide them to choose the ideal insurance for them.
It’s fantastic that you went into further detail about how having auto insurance is required by law since you are responsible for any harm you do. Therefore, having automobile insurance protects you against any time, financial, and hassle costs associated with any damage your vehicle may cause. My father has advised me to purchase vehicle insurance for my just-acquired SUV, and he may be correct. Insurance will give me peace of mind since I’ll be protected if something unexpected occurs to my automobile. Thank you, I’ll be sure to acquire a good auto policy!
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Your explanation of how auto insurance provides more than simply protection for your car in the case of an accident was very helpful to me. It also protects you from having to cope with unusual conditions brought on by the accident, as well as financial and medical responsibilities. After supper last night, my father mentioned that he wants to get insurance coverage for his new Vehicle in two weeks. He stated that he wants to get an insurance policy that provides coverage if his car sustains damage as a result of a natural catastrophe, therefore it makes sense for him to select a reputed insurance provider.
As I read your article, all the questions I had concerning Auto insurance were answered.
Thanks for the information.
Hi there. I have to thank you for making it clear that our auto insurance contract would become effective once we’ve fully paid the premium. My son is planning to get himself a secondhand car before he starts his new job next month. I’m gonna remind him about this so he can purchase a suitable policy.
I like how you said that car insurance can protect you against medical or financial liability. My younger brother just bought his first car last week and wants to be fully protected in case of an accident. I’ll make sure he finds a reputable insurance provider this week so he can purchase a quality car insurance policy.
What caught my attention is when you said that an insurance policy can protect you from financial losses due to unforeseen accidents. With this in mind, I will consider speaking with a reliable car insurance agent before Friday comes. I purchased a new sedan last weekend, and it is important for me to ensure that I can keep it looking new. Maybe, I should speak with an agent to find out the best type of insurance policy for my needs.
Nice Article!
I had no idea that third-party property damage included harm to a different car or piece of property. You gave the following example: If your automobile impacts another vehicle or a light post, Third Party Property Damage will pay for the damage to the other vehicle or lamp post. I’ll talk to my sister about buying insurance since she recently purchased her first vehicle, a sedan that she adores. Thanks for the info.
Thank you for discussing how your automobile is protected by Acts of Nature against earthquakes, floods, and typhoons. Acts of Nature, you explained will cover your automobile if it is damaged by flooding or if a typhoon or earthquake causes large debris to fall on it. I just purchased an SUV with my own money the other month and I have every intention of getting it insured so thanks for the info.
I was interested in your statement about how having insurance can provide financial protection in case of unexpected accidents. It made me realize that I need to talk to a dependable car insurance agent before the end of the week since I just bought a new sedan and want to maintain its condition. I think it’s a good idea to consult an agent to determine the most suitable insurance policy for my requirements.
It’s true that understanding the role of vehicle insurance is crucial for safeguarding yourself and your loved ones against the potential risks and damages that come with driving a car on a regular basis. As you said, insurance coverage serves as a protective measure that shields you from the potential financial losses and hassles that could result from unexpected accidents. In light of this information, I’m even more motivated to get my new Jeep insured so that I can rest easy knowing that I’m fully covered in the event of an unforeseen mishap on the road.
I’m delighted you mentioned that earthquakes, floods, and typhoons are all covered by auto insurance. These are known as “acts of nature,” as you indicated, and are advantageous because you never know what will occur in the future. Since my niece has been contemplating purchasing a car for a very long time, I’ll make sure to let her know about this. I’ll definitely look into auto insurance services for her to help her out.
My office mate has decided to purchase a secondhand car to ease his daily commute to work. I suppose he could reach out to an agent first to help him find suitable coverage. Anyway, shout out to you for insisting that we can avoid numerous liability concerns by opting for the right auto insurance.
To purchase a used automobile that would make their daily journey to college easier, my son and his roommate have been pooling their own funds. They ought to see a specialist, in my opinion, so they can later get appropriate coverage for the car. Many thanks for reminding us to take into account natural catastrophe insurance as well.
Hello! Is it okay if I pass this article to my daughter before she gets in touch with an agent soon? She’s decided to buy a pre-owned car to ease her daily commute to work. It was nice of you to promote the benefit of car insurance in covering damages due to adverse weather conditions.
My point of view is that this blog is an excellent one and I’ve benefited greatly from it. Keep up your amazing work.
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It was excellent that you pointed out that Compulsory Third Party Liability is the most economical and essential insurance. My cousin recently bought a new car and is trying to get insurance. Thank you for the post; I’ll let him know about your link so he can get the greatest deal on vehicle insurance.
Hmm, interesting. I appreciate the idea that auto insurance could benefit us if our vehicle gets damaged due to natural disasters. Buying a pre-owned car has been something my nephew dreamed of doing since last year. Maybe it’s time he reaches out to a policy agent to secure proper coverage.