Why are Filipinos intimidated by Insurance? [Infographic]

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In 2014, the Insurance Commission pegged the number of Filipinos who have insurance at 28 Million. Generally, Filipinos view insurance as an extra cost, a luxury, or something that is not a necessity to live and function.

However, it goes without saying that car insurance is a necessity, especially in the Philippines. After all, most Filipinos find that one of the most prized possessions in their cars. In fact, one study revealed that 72% of Filipino car owners give importance to their cars and view them as a status symbol. It is just right to spend amounts of money to protect it, rather than spend much more trying to repair it. Moreover, consider car insurance as a long term investment for the safety and protection of you, and your family as well.

Despite this knowledge, why do most Filipinos veer away to the idea of getting insured? Here are the three factors why the common Filipino is intimidated by insurance:

Why are Filipinos intimidated by insurance

It’s cultural: risk and money are uncomfortable subjects to talk about.

Filipinos are the type of people who are very superstitious, to the point that they believe if something is going to happen, there’s no point in preventing it. Moreover, talking about money and future possibilities don’t come easily, and these topics can easily shut down a conversation.

It’s this inability to discuss – and a lack of education on matters of money, health, and how insurance plays a factor in keeping both primed – that makes most think that insurance is an unnecessary financial burden.


It’s just a waste of money.

Many Filipino believes that insurances are just a waste of money, and sometimes, a luxury for those who have some extra money to spend. The important thing for most people is what is here and now: the present.

This thinking makes people rank the need for insurance low on their list of priorities – not engaging in it unless called for, such as in car insurance, or the coverage that comes with being a member of the Social Security System or any of the agencies licensed by the government to provide it as a benefit to employees.


Why invite risk?

Back to the subject of being superstitious, most Filipinos believe that talking about something is like inviting it to happen. If they talk about accidents, then accidents will haunt them. “Risk invites risk,” many believe.

This thinking extends to how they think about insurance: buying health insurance invites sickness, buying more car insurance invites car accidents, and the like. Most may ignore insurance because they feel that as long as they keep themselves healthy, or as long as they drive safely. Instead of getting insurance, why not eat healthier foods? Or drive more safely? Some would argue.

It is a common flaw for Filipinos to ignore the importance of insurance because there are too many other factors to deal with when it comes to getting car insurance. Most will view it as a time-consuming process to undertake or worse, an unnecessary expense.

What truly matters is you can secure yourself from possibly losing more money than is necessary when the unexpected happens. It’s just a matter of finding the right insurance provider that can cater to your needs perfectly. The job is to assist people who need car insurance through the process, to help educate people on why car insurance is necessary, especially if these factors hinder forward-thinking for most Filipino families.


iChoose.ph is the first car insurance comparison site in the Philippines. Proudly Filipino-owned, managed, and maintained, with more than 50 years of combined knowledge and experience in the car insurance industry, it is more than just a website. It is a service built with integrity, knowledge, and pure service for Filipinos.



Author: erwin reyes

Erwin has a combined experience of more than 15 years in the car insurance industry in the Philippines and Australia. Loves cars and enjoys to sourcing out great deals for its clients