What is third-party liability insurance and why do you need it?

You will be required to get Compulsory Third Party Liability Insurance otherwise known as CTPL, whenever you register your car. It is illegal to drive around with an unregistered car, and the Land Transportation Office (LTO) will now allow you to register your vehicle if it doesn’t have the minimum requirement, known as third party liability (TPL).

The majority of vehicle owners will purchase comprehensive insurance on top of their CTPL policy to cover passengers and the vehicle itself. You can get instant quotes from multiple insurance providers and purchase online through AutoDeal's comprehensive insurance tool. 

As the name suggests, this type of insurance policy will cover the other person’s damages in the event of an accident. The beneficiary of this policy would be the person that you hit, in other words, not the policyholder. This means that if you bump someone’s car, the damage on that someone’s car will be covered by the policy, and not the damage on your own automobile. 

Because it is mandatory and has limited coverage, a third-party liability is often priced lower than comprehensive insurance policies. It protects you from paying out of pocket when something does happen to another motorist, however, you will be left to pay for your own damages unless the other person has a policy that can cover for you, and you’re not at fault for the accident. 

The cost varies depending on what your vehicle is, below is an estimated summary:

Vehicle Classification Total Premium

Private Car (including jeeps and utility vehicles) - P606.00

Light/Medium Trucks (Own Goods) Not Over 3,930kgs. - P656.00

Heavy Trucks (Own Goods) and Private Buses over 3,930kgs - P1,246.00

AC and Tourist Cars - P786.00

Taxi, PUJ and Mini - P1,146.00

PUB and Tourist Bus - P1,496.00

Motorcycles/Tricycles/Trailers - P296.00

Investing in any insurance policy is a financially responsible decision to make, and TPL policies are a gateway to better policies with greater coverage. First of all, you will need this policy to register your vehicle in the country. The reason for this is to be able to protect other vehicles and pedestrians on the road and beyond. Secondly, it helps you keep your finances in check if you do find yourself having to pay for someone’s repairs from an accident. 

Your CTPL policy protects third-party victims of up to P100,000 in the event of a vehicle accident, which primarily goes towards the support of medical fees or a full payout in case of death. It also covers damages that were incurred because of the accident. 

You really should consider financially protecting yourself, your passengers, and your vehicle from accidents, which can be done by purchasing additional insurance products through a comprehensive car package. These packages can be configured to match your needs and budget.Some key insurance products to consider are;

• Property Damage Protection

  If you get into an accident and you are responsible, then your insurance policy will financially protect you if you have property damage coverage. Specifically, this will cover other people’s car repairs, property damage, and other non-human damages. If a case was filed against you, then legal fees would also be covered.

• Bodily Injury Coverage

  This part of your insurance coverage will protect you financially if you hit another person when driving your car. Specifically, this will cover the medical and hospitalization fees of the other person injured, as well as lost wages, emotional distress damages, and any legal fees that may occur.

• Personal Injury coverage / Auto personal accident

  This is for the financial protection of passengers in your car and yourself. Personal injury coverage will financially assist in medical and hospitalization fees for treatment that may be needed.

• Comprehensive Coverage

  Most of the time it won't be your fault and is beyond your control. Comprehensive coverage will financially protect you against malicious damage, theft, vandalism, fire, riots, and other non-natural events that can damage your vehicle.

• Acts of God Coverage

  Also known as ‘Acts of Nature’ is an available option to add to your insurance, which financially covers you if car damage occurs due to flooding, typhoons, earthquakes, and other such natural disasters. As the Philippines is prone to natural disasters, this option is usually a sound investment to add to your car insurance policy.

You need to provide the usual personal and vehicle details along with 4 specific documents;

1. Official receipt (OR)
2. Certificate of registration (CR)
3. Drivers license
4. Other government ID