The privilege of being able to acquire a car for yourself comes with a lot of responsibilities. One of the most important ones is making sure their vehicle is properly insured, mainly with a third-party liability insurance (CTPL), and ideally, a comprehensive motorcar insurance.
Insuring your car saves you from a host of possible legal and financial hazards that having a vehicle can entail. If this is your first time owning a car, start with choosing the perfect car insurance.
But did you know different countries follow different policies when it comes to getting a car insurance?
So first, let’s talk about the different types of car insurance you can get in the Philippines. For your further knowledge, and to satisfy your curiosity, we’re also going to take a look at how car insurance works in other countries. You’ll be surprised at how privileged you are to be driving in this country.
In the Philippines
The car insurance policies offered here in the Philippines are classified into two different categories. The first-party or comprehensive vehicle insurance, and third-party liability insurance.
First party insurance policies cover only the casualties and damages experienced by the car or policy owner him/herself as well as his/her passengers during the time of a collision.
Insurance providers are responsible for coverage of those who have first-party insurance policies in the event of these circumstances:
- The accident wasn’t the fault of the policy owner him/herself.
- The accident wasn’t the fault of the parties involved.
- During hit-and-run situations.
- The driver at fault cannot pay for the repairs needed by the policy owner.
Compulsory third-party liability insurance (CTPL)
In the Philippines, it is mandatory for new car owners to acquire Compulsory Third Party Liability Insurance (CTPL).
CTPL gives the policyholder who gets involved in an accident the coverage for any affected person, property, injury etc.
In general, the insurance provider will cover any financial liabilities the owner of the policy has made toward other people as well as their assets.
The Land Transportation Office (LTO) requires you to have CTPL and present it when registering your vehicle.
That said, here is an example of events and circumstances insurance providers covered by comprehensive insurance policies:
- Any damage acquired during shipping or transport of vehicle.
- Any damage, theft or vandalism that is equivalent to the loss of the parts, spare parts and accessories of the vehicle. (Policy owner must participate in paying the full cost of the damaged or stolen part in the event that the value of such is greater than the value of the deductible)
- Any damage caused by external agents such as fire or explosion, or those that are caused by self-ignition.
- In cases of carnapping and robbery, the policy owner can have a claim of only up to the Fair Market Value of the stolen car if in case the care is not recovered. (Fair Market Value = Car’s value – Depreciation value)
Some policy owners may want more coverage than the usual. Various car insurance packages are offered by different car insurance providers.
Now let’s have a look at car insurance in other areas of the globe.
Insurance policies all over Europe cover damages, including casualties and the injuries suffered by members of the family of the owner of the policy.
Car insurance policies in “Green Card” countries with (Belgium, Finland, France, Ireland, Luxemburg, Norway, United Kingdom) have unlimited coverage when it comes to the loss of an individual.
In non-Green Card countries, on the other hand, the amount of their coverage upon the loss of an individual is as follows:
|Country||Amount of coverage|
|Denmark||More than $10,000,000 only|
|Sweden||More than $36,000,000 only|
In addition to, some countries offer unlimited property damage coverage while some offer only a limited one:
|Country||Amount of property damage coverage offered|
|Austria||Limited to $900,000 only|
|Denmark||Limited to $2,000,000 only|
|Switzerland||Limited to $2,000,000 only|
|France||Limited to $511,000 only|
|Germany||Limited to $231,000 only|
|Spain||Limited to $32,000 only|
|Sweden||Limited to $36,000,000 only|
|United Kingdom||Limited to $370,000 only|
|Croatia||The cost of car repair and medical services of those involved in the accident is equal to the actual cost of the cars of both the affected parties.|
|Poland||The cost of car repair and medical services of those involved in the accident is equal to the actual cost of the cars of both the affected parties.|
|Slovenia||The cost of car repair and medical services of those involved in the accident is equal to the actual cost of the cars of both the affected parties.|
|Czech Republic||Mandatory unlimited coverage completely covering all kinds of damage to third parties involved in an accident.|
|Hungary||Mandatory unlimited coverage completely covering all kinds of damage to third parties involved in an accident.|
|Slovakia||Mandatory unlimited coverage completely covering all kinds of damage to third parties involved in an accident.|
|Latvia||Established minimum level of coverage (often does not provide competent reimbursements to victims of car accidents)|
|Russia||Established minimum level of coverage (often does not provide competent reimbursements to victims of car accidents)|
|Ukraine||Established minimum level of coverage (often does not provide competent reimbursements to victims of car accidents)|
In Germany, car owners who, for the last three years have not taken part or been involved in an accident pay around 1000 Euros annually for a car insurance.
In Italy, the amount of car insurance you will pay depends on the classification of your car, its engine power, and your driving experience. The more of an experienced driver you are, the lesser the amount of your policy is.
United States of America
In the US, each of the 50 states follows different car insurance policies.
In some states, residents are allowed to own and register a new car without the need for an insurance policy.
Some states, don’t require you to have insurance until you’ve experienced your first accident.
However, 45 states follow a compulsory rule on third-party liability insurance. This will cost car owners around $500 to $1,000 annually.
Car insurance companies in America follow different parameters when determining tariffs. Annual fees are calculated based on a complicated system, the points and bonuses system, which takes into consideration the cost of the vehicle on top of the history of its insurances for the past 10 years.
The coverage of their insurance policies are as follows:
Amount each victim involved in the accident will receive: $10,000 – 100,000
Amount of compensation of material damage: $5,000 – 25,000
Physical and moral harm to each victim: $10,000 to 50,000
No matter where you are in the world, it’s important that you choose a trustworthy insurance company. In the Philippines, Oriental Assurance Corporation (OAC) is one of the most trusted companies in the Philippine Insurance market.
OAC can provide you with coverage against loss and damage to your vehicle. They offer insurance against theft, third party liability, property damage, and passenger accidents.
OAC is also accredited with top motor shops and dealers, making it easy for you to find someone trustworthy to work on your beloved vehicle. They can even provide free roadside assistance for qualified vehicles.