Your weekend car insurance guide: Flood, theft, & accident coverage

For most Filipinos, weekends are typically for errands, family trips, or quick out-of-town drives with friends. But let’s be honest, heavy traffic, sudden rain, flooded streets, and car theft do not take weekends off. Here, your car insurance policy will protect you. Don’t worry, we understand that car insurance can be confusing due to its legal terms and conditions. Many drivers only realise what their policy covers after something bad happens, like an accident, collision, or theft.

To make matters simple, we have created this weekend guide that explains flood, theft, and accident coverage. Here, everything is broken down in the simplest form - no jargon, no stress. Whether you are driving in Metro Manila, Cebu, Davao, or the provinces, read this guide thoroughly to understand how insurance coverage works in the country.

Enough said, now let’s get started …

Car insurance in the Philippines - Basics you can’t miss

Before the weekend begins and you head out, it is essential to ensure that you and your car are well protected from risks such as flooding, theft, and accidents. But first, let’s look at the insurance basics.

What is Compulsory Third Party Liability (CTPL) insurance?

CTPL insurance is the minimum legal requirement in the country. It is required to get the car registered with the Land Transportation Office (LTO).

Key highlights -

• Covers injuries or death of other people involved in the accident
• Does not cover damage to you and your car
• Does not cover damages due to floods, theft, or medical bills

Think of CTPL as a legal requirement - not absolute protection cover.

What is comprehensive car insurance?

Comprehensive insurance is where the real coverage begins. This policy includes -

• Accident damage
• Flood protection
• Theft coverage
• Acts of God coverage (depending on your provider & policy)

We’ll now elaborate on the coverages mentioned above. Let’s begin…

Accident coverage: Explained in detail

In the Philippines, road accidents are among the leading causes of insurance claims. When planning a weekend trip with friends and family, or when you have a lineup of errands, it is essential to understand the accident coverage your provider typically offers.

What counts as a car accident?

An accident usually includes -

• Collision with another car
• Hitting a wall, post, tree, or other objects on the road
• Self-accident (due to loss of control, no other vehicle involved)
• Parking accidents

Note that as long as the accident or damage isn’t intentional or caused by illegal activity, accident coverage will help cover damages.

What accident coverage usually pays for?

Accident coverage varies by provider; confirm with your provider. Here’s a general overview of the inclusions -

Accident coverage may include -

• Car repair
• Damage to another vehicle
• Medical expenses for injured parties
• Legal liability (upto policy limits)

Despite the above-mentioned coverage, you’ll be required to pay a participation fee, which is your share of the repair cost.

Flood coverage: Essential for Filipino drivers

Flood coverage is one of the most essential forms of protection for car owners in the country, given the frequency of natural disasters.

Why is flood coverage so essential?

With typhoons, monsoon rains, and clogged drainage systems, floods become more frequent. So much so that even a brief rainfall can quickly flood roads.

Without flood coverage -

• You will end up paying 100% of the repair cost
• Engine damage could cost you thousands of pesos
• Total loss means zero compensation

What flood coverage typically includes?

Flood coverage that is usually part of Acts of God coverage typically offers protection against -

• Interior damage
• Electric system failure
• Water-damaged engine
• Damage due to mud and debris

Total loss

If you get stuck in floods and water reaches the engine, causing severe damage, the insurer may declare the car a total loss. In this case, the provider will pay you based on the car’s insured value.

Important reminder: Never start your car after flooding. Doing so can void your claim.

Theft coverage: Protecting your car from loss

Car theft may not be common, but it can still happen. Therefore, it is better to prepare in advance than to be sorry later.

Theft coverage: The basics

Theft coverage protects you if -

• Your car gets stolen
• The vehicle is not recovered
• The theft is reported promptly and adequately to the authorities

Requirements for theft coverage -

• Police report
• Proper documentation

Note that car owners/drivers’ negligent behaviour, like leaving keys inside, can lead to the denial of a claim.

Partial vs. total theft

Partial theft	Total theft
Car parts, including side mirrors, tyres, and other components, are stolen. May or may not be covered, depending on the policy.	The entire car gets stolen.  If your policy includes theft coverage, the insurer will pay you the insured value.

Common myths about flood, theft, and accident coverage

Let us now clear up some common misunderstandings around the subject -

Myth 1: CTPL insurance covers floods
Reality: No, it doesn’t. CTPL insurance only covers third-party injuries or death.

Myth 2: Car insurance covers everything automatically
Reality: No, that’s not the case. Each car insurance policy is different and covers only what is included.

Myth 3: Older cars can’t get coverage
Reality: Many insurance providers offer coverage for older cars. Inspection may be required in some cases.

Myth 4: Claims mostly get denied
Reality: Proper documentation, submitting a police report and photos of the damage, and being truthful - helps with claim approval.

How to choose the right coverage

Not all car owners need the same level of protection; it is advisable to choose coverage that suits your lifestyle. The table below gives a general idea of the coverage you should add -

Daily drivers	Accident and flood coverage is a must
Weekend cars	Theft and flood coverage is recommended
Family vehicles	Add higher liability and medical coverage to the policy

Practical tips to lower insurance-related stress & claim stress

• Read your policy thoroughly before signing
• Take multiple photos of the damage and the incident scene
• File police reports when required
• Keep providers' and agents' emergency numbers saved
• Avoid driving through flooded roads

Bottom line

Read this weekend guide, and you’ll know that car insurance and the coverage it offers don’t have to be complicated at all. If you own a car, then the right coverage would mean peace of mind - be it rain or shine, weekday or weekend.

If you go out frequently, especially on weekends, we recommend getting an insurance policy that includes coverage for accidents, floods, and theft. This way, you’ll get protection against collisions, nature’s surprises, and total loss. Together, this coverage will help ensure that a bad day on the road doesn’t lead to long-term financial problems.