The law states that if you get into an accident while driving and hit another person, vehicle, or property, you must compensate for their hospital and repair bills.
These payments are often expensive and can significantly affect your finances. You either spend the majority of your savings or go into debt. And if you can’t shell out cash for some reason, you’ll inconvenience those you’ve already hurt. They may even take legal action against you for denying liability.
This is why the Land Transportation Office (LTO) requires you to get a certificate of cover (COC) for vehicle registration. You get this document when you buy car insurance. It shows that you can pay the people your vehicle may harm in an accident.
There are two insurance policy types that the LTO accepts: Compulsory Third Party Liability (CTPL) and Motor Vehicle Insurance. Learn their differences to know which is best for your needs and budget.
What is CTPL Insurance?
The key words in CTPL are “Third Party Liability.” Here’s what it means.
The first party is you, the owner of the insured car. The second party is the insurer you got the policy from. The third party is anyone involved in the accident because of the first party.
Therefore, CTPL’s sole purpose is to protect you from financial losses if you need to pay for another person’s medical or car repair bills in the event of a crash.
How Much is CTPL Insurance?
Our CTPL for Private Cars policy at Metropolitan Insurance Company Inc. (MICI) offers up to ₱100,000 coverage. If your payment amounts to or costs less than that, we’ll pay for it. If it costs more than that, you’ll save ₱100k in expenses. This policy costs just ₱560 a year.
What is Motor Vehicle Insurance?
Motor Vehicle Insurance also offers third-party liability coverage. However, it also covers you, your vehicle, and your passengers. It even protects you from nasty repair and replacement costs if your car gets damaged due to acts of nature, like earthquakes and tsunamis. You can also customize your policy to cover theft or boost your TPL coverage amount up to ₱1,000,000.
This type of insurance offers more coverage than the basic CTPL, which is why it’s also called “Comprehensive Insurance.” With extra protection, however, comes more expensive premiums.
How Much is Motor Vehicle Insurance?
There is no one-size-fits-all premium for this type of insurance. Every vehicle is different regarding sale price, model, make, and wear. Owners also have various needs and budgets. Insurers consider this information and create a personalized price for every customer.
Which Insurance Should I Get?
It all depends on your budget and time. If you’re recovering from your new car’s upfront expenses and need to get it registered ASAP, get CTPL to comply with the LTO’s minimum requirement. Upgrade to a more comprehensive policy once your savings stabilize in the future.
If you’re willing to pay more than a thousand pesos upfront for insurance, then getting Motor Vehicle Insurance is a great choice. You get better protection and customizable coverage, giving you better peace of mind on the road.
Get Reliable Insurance for Your Car’s Registration
Car insurance is a requirement for your vehicle registration. After all, road accidents can happen to you when you least expect them. And they’re often expensive. Get peace of mind behind the wheel with LTO-accredited MICI CTPL, which offers up to ₱100k coverage for only ₱560 per year.
Want more comprehensive coverage? Buy a MICI Motor Vehicle Insurance policy, which offers CTPL, personal accident, and acts of nature coverage in one package. You can also customize your policy to cover theft.