Why You Should Get an Insurance for Your Brand New Car

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Accidents happen even though you do your best to drive as safe as possible. This is why car insurance is essential for every car owner—especially for those who own a brand-new car. Car insurance is more of a necessity than a luxury because it can save you a lot of money if you’re involved in an accident. There are several companies that insure brand-new cars in the Philippines. But first, you need to know the different types of car insurance.

There are two types of car insurance in the Philippines—the Compulsory Third Party Liability (CTPL) and the Comprehensive Car Insurance (or “Compre”). These two types of car insurance offer different things for car owners. Here’s a brief overview of the difference between the two:


Compulsory Third Party Liability (CTPL)

CTPL is the basic and the cheapest insurance for cars in the Philippines. This is a government-mandated insurance policy, which means that you need to have a CTPL before you can register

your car in the Land Transportation Office (LTO). Yes, every car owner should get CTPL insurance, or else your car can’t be registered in the LTO.

This type of insurance covers you financially should you injure or kill a person while you’re behind the wheel. It also covers the expenses related to property damage and permanent disablement.

Choose your preferred non-life insurance provider to get CTPL insurance. The insurance rates for CTPL are relatively the same among different insurance companies. Present your CTPL insurance policy when you’re going to register your car.


Comprehensive Car Insurance

The difference between Comprehensive car insurance (Compre) from CTPL is that it offers more coverage. Moreover, the government does not require owners to secure a Compre. One of the reasons why it is not mandated by the government is that Compre insurance is more expensive as compared to CTPL. It is more expensive because, as said earlier, Compre offers more coverage.

Some of the coverage offered by Compre insurance are the following: Damage/Theft, Property Damage or Voluntary Third Party Liability, Personal Accident, and Acts of Nature.

Damage/Theft is the most common coverage in Compre insurance in the Philippines. This basically covers car damage, car loss, car robbery, vandalism, and fire-related incidents.



Property Damage or Voluntary Third Party Liability is insurance coverage that will take care of the expenses should you damage someone else’s car.

Personal Accident provides you financial assistance should you and your passenger/s get injured or died due to a car accident.




Acts of Nature or Acts of God is a type of insurance coverage that became prominent after the floodwaters brought on by Typhoon (Ondoy) damaged the countless number of cars in Metro Manila and its outlying areas. This insurance coverage will protect your car financially from natural disasters such as floods and earthquakes.

Getting car insurance in the Philippines is relatively easy. You just need to take note of the following requirements.

-Original vehicle receipt

-Certificate of Registration

-Driver’s license

-Additional valid government ID

Of note, before you sign the insurance policy, make sure that you read the contents of the document. Don’t be shy to ask your insurance agent should you have any questions. Remember, car insurance is not that cheap—so you better get things sorted out before you sign and accept the policy.

Getting a car insurance for your brand-new car is essential so that you’ll be financially ready should you get involve in a car accident. Car insurance is also your financial protection against physical damage, natural calamities, and injuries.






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