Glossary

Car Insurance Glossary: Philippine Motor Insurance Terms

Plain meanings of the car insurance terms you see in the Philippines: CTPL, COC, own damage, acts of nature, participation fee, LTO registration and more.

Terms:
28 terms
Topics:
3 topics
Updated:

AutoInsurance.ph

Car insurance in the Philippines comes with its own words, from CTPL and COC to AON and participation fee. This glossary gives each term a short, plain meaning and a link to the guide that covers it, so you know what you're paying for.

Policy basics

8 terms

  • Cooling-off period

    A short window after buying when you can cancel and get a refund, subject to the policy's terms.

  • Exclusions

    Situations or losses the policy doesn't cover. Read them before you buy.

  • Insurer

    The company that issues the policy and pays valid claims.

  • Policy wording

    The full terms of the policy: what's covered, what isn't and the conditions you must meet.

  • Policyholder

    The person or business who owns the policy and pays the premium.

  • Premium

    The price you pay for the policy, usually yearly or in instalments.

  • Renewal

    Continuing a policy for another period. Check the new premium and terms each time.

  • Sum insured

    The most the policy pays for a covered loss or item.

Claims

3 terms

  • Claim

    A request to the insurer to pay for a covered loss.

  • Third party

    Someone other than you and the insurer, such as another driver or a pedestrian, who may be injured or suffer loss.

  • Underwriting

    How an insurer assesses risk and decides whether to offer cover and at what premium.

Car insurance in the Philippines

17 terms

  • Acts of nature (AON)

    Optional cover for damage from floods, typhoons, earthquakes and similar events.

  • Certificate of Cover (COC)

    The document that proves your CTPL policy, checked when you register or renew with the LTO.

  • Comprehensive car insurance

    Optional cover that adds damage to your own car, theft and more to third party cover.

  • CTPL (compulsory third party liability)

    The insurance every vehicle must have to register with the LTO. It covers death or injury to third parties, not damage to your car.

  • Depreciation

    The drop in a car's value over time. It can lower the amount insured and the payout for parts.

  • Excess bodily injury

    Third party injury cover above what CTPL pays, often added to a comprehensive policy.

  • Installment premium

    Paying a comprehensive premium in parts instead of at once, where the insurer allows it.

  • Insurance Commission

    The government agency that regulates insurers in the Philippines. Check that an insurer is licensed before you buy.

  • LTO registration

    Registering your vehicle with the Land Transportation Office, which needs valid CTPL.

  • Motorcycle insurance

    CTPL and optional cover for motorcycles, which follow the same LTO rules.

  • Own damage

    Cover for damage to your own vehicle from an accident, under a comprehensive policy.

  • Participation fee (deductible)

    The part of each own damage claim you pay yourself before the insurer pays the rest.

  • Personal accident cover

    Optional cover for death or injury to the driver and passengers, whoever is at fault.

  • Police report and affidavit

    Documents insurers often ask for when you claim after an accident or theft.

  • Roadside assistance

    An add-on for towing, jump starts and similar help after a breakdown.

  • Theft (carnapping) cover

    Cover if your car is stolen, usually part of a comprehensive policy.

  • Third party property damage

    Cover for damage you cause to someone else's property, such as another car or a wall.

Frequently asked questions

Is CTPL enough car insurance?

CTPL is the legal minimum. It covers third party death or injury, not damage to your own car.

What is a participation fee?

It's the part of an own damage claim you pay yourself before the insurer pays the rest.

Does comprehensive insurance cover floods?

Only if the policy includes acts of nature cover. Check the policy wording.

What is a COC?

It's the Certificate of Cover that proves your CTPL policy for LTO registration.

Who regulates car insurers in the Philippines?

The Insurance Commission.

Can't find a term?

Our guides explain each step in more detail.

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