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Why Ride-Hailing Service Drivers Should Insure Their Vehicles First

Person driving a ride-hailing service car with auto insurance


The life of a daily commuter can be quite challenging, especially for people living in the metro and other urban areas in the country. For this reason, ride sharing has become a popular way to get around. Private car owners that offer ride-hailing services have also become commonplace.

If you have your own car and wish to earn extra income, becoming a driver for a ride-hailing app is a good idea. There are some requirements, though, such as registering your car under the Transportation Network Vehicle Service (TNVS) category at the Land Transportation Franchising and Regulatory Board (LTFRB).

Buying insurance for the vehicle you will use is also a must. This article lists some auto insurance policies that are either required or recommended if you wish to become a TNVS driver.

Insurance for Ride-Hailing Service Drivers 

If you want to become a ride-hailing service driver, it is necessary for you to have your car insured. Two are required, while others are optional if you want more protection for yourself, your vehicle, and your future passengers.

Here’s a quick list of some insurance products that you can buy for your car if you plan to be a TNVS driver:


CTPL Insurance 

As required by law, all car owners must be covered by compulsory third-party liability (CTPL) insurance. You must buy this insurance from a reliable provider before you can get out on the road and drive your vehicle, whether or not you use it for ride-hailing services.

CTPL insurance protects the driver from financial obligations in case they get into accidents that lead to a death or injury to another person. The insurance company will cover the victim’s medical expenses as a result of the incident. This particular insurance product is highly beneficial among TNVS drivers because they are always on the road. No matter how cautious they are when driving, they can never be sure they will not get into an accident.

It should be noted, however, that CTPL insurance is quite limited, especially because it does not cover the driver itself. Even if the driver is injured, their CTPL insurance cannot be used for their medical expenses.

Comprehensive Auto Insurance 

Comprehensive auto insurance is optional, but every driver is advised to purchase it. As the name suggests, this product offers more extensive coverage compared to CTPL insurance.

The coverage can vary from one insurance provider to another. However, in many cases, comprehensive insurance covers the following:

  • Own Damage – This covers expenses for the repair of any accidental damage caused by the owner of the vehicle.
  • Theft or Damage – Car owners can claim compensation if their vehicle is proven to be lost or stolen. The same is true if their vehicle is damaged because someone tried to steal it.
  • Excess Bodily Injury – This covers the medical expenses of a third party in case they get involved in an accident.
  • Acts of Nature – Coverage for acts of nature allows you to file a claim for damages caused by natural disasters.

Although comprehensive car insurance is not required by law, TNVS drivers can still benefit greatly by buying this product. This way, they can stay protected from different financial obligations in case they face any unfortunate circumstances while driving their car.


TNVS Insurance 

TNVS insurance is exclusive and required for all ride-hailing service drivers. It offers protection not just for the driver but also for their passengers in case they get into an accident on the road.

This particular product can be a little different if you compare it with other types of car insurance. The primary difference is that only two agencies are allowed by authorities to offer TNVS insurance: the Passenger Accident Management and Insurance Agency (PAMI) and the SCCI Management and Insurance Agency Corporation (SCCI).

Get Your Vehicle Insured Today!

If you plan to become a ride-hailing service driver, you should not neglect to buy insurance for your car. Now, you might be wondering, “Where can I find auto insurance providers near me?” The answer is simple: visit the nearest Cebuana Lhuillier branch and tell the staff you want to purchase our car insurance products.

We offer CTPL insurance, which is required for all drivers. For your ride-hailing service car, the cost starts at just ₱610.40, and it’s already valid for a whole year. We also have AutoCARE, a microinsurance product that functions as a standard comprehensive insurance for your car. It covers own damage, theft, loss, excessive bodily damage, excessive property damage, and acts of nature.

If you’re a TNVS driver with very little time to spare, don’t worry because purchasing insurance from us is easy. All you have to do is visit any of our branches and tell the staff that you wish to purchase either CTPL insurance, AutoCARE, or both for your car. Fill out the form given to you, and give it back to the clerk, along with your payment. Wait for a few minutes before your Certificate of Cover is released.


Becoming a TNVS driver isn’t easy, especially because there are a lot of papers to furnish before you can start earning. However, all of these documents are there to help protect you and your future passengers from different problems. The insurance policies required by the government, for instance, are there to prevent you from paying a large amount of money for medical bills in case you get into an accident.

Cebuana Lhuillier is here to help. If you wish to learn about the auto insurance policies that we offer to private car owners and TNVS drivers, do not hesitate to contact us or visit any of our branches. Our friendly staff members will be more than happy to offer the assistance you need.