For many car owners, insurance feels like an unnecessary expense—until something goes wrong. While Compulsory Third-Party Liability (CTPL) insurance is legally required in the Philippines, it only covers injuries to third parties, leaving vehicle owners vulnerable to costly repairs, theft, and accidents.
Randell Tiongson, a Registered Financial Planner, emphasizes the importance of understanding what basic car insurance really covers—and what it doesn’t.
“CTPL insurance does not cover damage to your vehicle,” Tiongson explains. “This is where comprehensive insurance comes in, as it provides protection against accidents, theft, and natural calamities.”
What Many Car Owners Get Wrong About Insurance
A common misconception is that insurance is just another costly add-on. But with Metro Manila’s traffic congestion and frequent accidents, a single repair bill could cost more than a year’s worth of premiums.
“It is always better to have protection in place rather than be caught off guard with unexpected financial obligations,” Tiongson says.
Comprehensive insurance offers more than just collision coverage—it can also cover fire, theft, vandalism, and even flooding. Given the Philippines’ vulnerability to typhoons and flash floods, this coverage could mean the difference between a minor inconvenience and a major financial setback.
A Smarter Way to Protect Your Investment
Many car owners don’t realize how quickly repair costs can spiral out of control. Even minor fender benders can lead to expensive bodywork, paint jobs, or parts replacements—costs that fall entirely on the owner without insurance.
“We need to shift our mindset and view insurance as an investment rather than an expense,” Tiongson advises.
Car insurance isn’t just about meeting legal requirements—it’s about long-term financial security. The best time to get insured? Before you actually need it.
This article includes quotes from an original piece by Randell Tiongson, published in the Philippine Daily Inquirer.
