News & Events

5 Misconceptions about Car Insurance in the Philippines


If you’re a car owner, you have a lot to consider when it comes to taking care of your ride. Maintaining its look and overall performance is no joke, with a big chunk of your money going to the mechanic. Filipinos always prefer to cut cost whenever possible, even if it involves our beloved car. This is wrong, in all aspects, as car insurance should never be ignored, especially if you’re a first time car owner. With that in mind, we have listed a few common misconceptions about car insurance in the Philippines (and why they’re false).

1. It is very costly/expensive.

No, it isn’t. First of all, car insurances offer different options; hence, you are not just limited to a single package. You can choose one that fits your budget. Remember, the main reason you’re availing car insurance is to avoid spending a much bigger fee in the event of an accident or other unforeseen occurrences. Spend less now to save big later. Feel free to ask around and discuss your options with various car insurance representatives.

2. I don’t need car insurance.

(Same note as in the other article, only TPL insurance is required and not comprehensive car insurance.) Think of it like wearing a seatbelt—yes, it may be uncomfortable at first, but at the end of the day, it would save your life. Car insurance would save you from a huge amount of expenses in the future.

3. I’m covered if my car gets damaged by natural disasters, stolen, etc.

Simply put, if it isn’t your fault, then you’re covered, right? Well, it depends. Remember when we mentioned that car insurances offer more than one type of packages? If you’re just going to avail the bare minimum insurance coverage required by law and included in the Compulsory Third-Party Liability insurance (CTPL), then you may very well forget about these coverages. The insurance company will only provide up to P100,000 of financial assistance to the third-party victims to release you from liabilities. In such case, you may need to avail a comprehensive car insurance. Yes, it would cost a bit more than the bare minimum, but its coverage includes  loss and damages due to fire and explosion, theft, vandalism and other malicious acts by third-party persons, accidental collisions, etc.

4. The color of the car will affect my premium.

No, definitely not. No one knows where this myth came from, but it has no shred of truth in it. In fact, the factors that affect your insurance premium would instead be your vehicle’s year, make and model, your location, your gender and age, your marital status, and your driving record and driving behavior. Be sure to ask the representatives to know how this would further come into play once you have availed a particular coverage.

5. The bare minimum car insurance required by law is good enough for me.

No, you may actually end up paying a lot more after an accident. Think of it this way: it may be cheaper than a Comprehensive Car Insurance, but you would be burdened by paying a big amount if you ever get involved in an accident with property damages. If your car gets damaged, you’ll be paying for your own repairs. If you’re liable for the damages to the other party, you need to pay for those as well. Never make this tough mistake.

So, you finally decided which insurance coverage works best for you, but, you have no idea where to apply for one. Worry no more, as we at Cebuana Lhuillier offer AutoCARE Insurance, a Standard Comprehensive Car Insurance that covers Own Damage (OD), Theft, Loss and/or Damage. Excess Bodily Injury (EBI), Excess Property Damage (EPD), and Acts of God/Nature (AOG/AON). So what are you waiting for? Visit your nearest Cebuana Lhuillier branch now—we assure a fast, easy, and secure transaction.

Image Source: