Is car insurance mandatory in the Philippines?

Having car insurance in the Philippines is a necessity, in fact, even the government requires you to get Compulsory Third Party Liability (CTPL) for your vehicle when you registered it. … It only covers the death or injury of a third party and not the damages to the vehicle itself.

Can you drive without insurance in the Philippines?

For instance, the law requires all old and new cars in the Philippines to have third party insurance, otherwise known as Compulsory Third Party Liability or CTPL. … Without it, a vehicle simply cannot be registered with the Land Transportation Office (LTO).

What will happen if you don’t have car insurance in Philippines?

You’ll be facing charges or even jail time

Of course, if you can’t pay for the damages you’ve caused, you’ll be dealing with legal matters. If you’re the root of the accident and you can’t cover the damage you’ve done, the least charge you may face is reckless imprudence resulting to damage to property.

Is it compulsory to insure your car?

It is a requirement of the law that every vehicle – commercial or private – should have an insurance policy. The question then becomes how one can decide on the kind of car insurance that one should have. It may seem tempting to decide to take the cheapest car insurance policy that may be on offer.

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What happens if a car doesn’t have insurance?

If you cause an accident without insurance, you’ll have to pay for all the damage to your vehicle out of your pocket. You could also be sued by other people for damage and injuries you caused them. … Uninsured drivers also will have trouble finding cheap car insurance rates when they shop for a policy.

Is comprehensive insurance required by law in the Philippines?

What is Comprehensive Insurance for Cars in the Philippines? True to its name, a comprehensive insurance for cars in the Philippines or “compre” is a more comprehensive type of policy compared to CTPL. It’s not mandatory, but it is highly recommended to buy one, especially if you use your vehicle everyday.

Can I just stop paying my car insurance?

If you don’t pay your insurance premiums, your policy will lapse, and you won’t have coverage. That means that, depending on where you live, it might be illegal to continue driving your car. Doing so anyways could mean pricey fines and even license suspension, depending on your state.

Can I cancel my car insurance Philippines?

Under The Insurance Code (Republic Act 10607), insurance companies in the Philippines have the legal right to cancel a policy due to reasons such as non-payment of premiums. … Missed payments go against car insurance policy terms and conditions, which merit a cancellation.

What car insurance is mandatory?

In New South Wales (where it’s better known as ‘Green Slip’) and Queensland, you must have CTP insurance before you can register your car. In the ACT, it’s called Motor Injury Accident (MAI) Insurance. You can buy it directly from a licensed insurer.

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Is it illegal to say you don’t have insurance when you do?

In short, it is completely legal to not use the insurance you have. … Often times patients with catastrophic insurance or high deductible health plans may see savings in doing so.

What happens if the person who hit me doesn’t have insurance?

How Does Uninsured Motorist Coverage Work? If you’re involved in an accident with a driver who doesn’t have any car insurance at all, you’ll likely have to turn to your own insurance company to cover your losses. Your best bet is uninsured motorist (UIM) coverage, which is usually an add-on protection.