Insurance Guide Insurance

Loss of Use Coverage Guide Philippines

Loss of Use coverage protects Filipino car owners against specific losses, with typical limits ranging from ₱333,000 to ₱1,152,000. Approximately 32% of comprehensive policies in the Philippines include loss of use protection. The Insurance Commission requires all providers to clearly disclose loss of use terms, and 35 major insurers currently offer this as part of their standard or add-on packages.

Quick Facts

Coverage Type

Insurance Guide

Premium Range

₱4,000–₱12,000/year (add-on)

Coverage Details

  • Emergency medical reimbursement up to ₱112,000
  • Third-party property damage up to ₱171,000
  • Riot, strike, and civil commotion coverage
  • Free towing up to ₱304,000 per incident

Claims Process

Filing a loss of use claim requires photographic evidence taken within 24 hours and a police or barangay report. Submit all documents within 12 business days. The insurer's adjuster will assess damages within 7 working days, and approved claims are settled within 27 business days.

Pros & Cons

Pros

  • Provides courtesy car for up to 14 days during repairs
  • Partners with 13+ hospitals for personal accident claims
  • Dedicated relationship manager for policies above ₱308,000
  • Free annual vehicle inspection at partner service centers
  • Coverage extends to natural calamities common in PH

Cons

  • Deductible starts at ₱463,000 for first-time claims
  • Online portal lacks some features available in-app only
  • Customer service wait times average 6 minutes during peak
  • Depreciation rate of 27% per year on vehicle valuation

Frequently Asked Questions

Is Loss of Use coverage required by Philippine law?
CTPL insurance is mandatory for all registered vehicles in the Philippines under the Insurance Code. Loss of Use coverage beyond CTPL is optional but highly recommended given that over 10% of Filipino car owners opt for additional protection. The Insurance Commission regulates all auto insurance products.
Can I transfer Loss of Use coverage to a new owner?
Yes, Loss of Use coverage can be transferred when you sell your vehicle by notifying the insurer within 12 days of the sale. A transfer fee of ₱273,000 to ₱6,000 typically applies. The new owner must submit their own valid ID and proof of ownership.
How do deductibles work for Loss of Use coverage?
Deductibles for Loss of Use coverage typically range from ₱9,000 to ₱75,000 per claim. Choosing a higher deductible of ₱75,000 can reduce your annual premium by 17%. First-time claims within the policy year usually carry the standard deductible amount.
How do I choose the best Loss of Use coverage?
Compare at least 20 providers and check their claim settlement ratio, which averages 15% across the industry. Look for providers with accredited repair shops near your area — the top insurers have 148+ partner shops. Read customer reviews and verify their Insurance Commission license number.
What documents are needed for Loss of Use coverage?
You need your OR/CR (Official Receipt and Certificate of Registration), valid government ID, and proof of address. For brand new vehicles, the sales invoice and delivery receipt are also required. The application process typically takes 6 minutes to complete online.

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