What is the difference between Third Party Liability and Comprehensive Car Insurance?

By Andrea Nicole

Posted on Nov 15, 2022



What’s next after purchasing your dream car? Some might think that preventive maintenance services would be the next game plan as they go through the months of owning it. However, there’s a step in between that is critical after your actual purchase, and that’s insurance. Compare it to having a fire extinguisher at your house. You hope that you won’t use it along the way, but should be a necessity just in case you face an emergency. 



Source: Flickr


This begs the question, what type of insurance is the best. Would you prefer a comprehensive car insurance or a third party liability (TPL)? Here’s a quick guide to help you weigh your options.


What is Comprehensive Car Insurance?


Source: Cover Fox


Comprehensive Car Insurance is one of the most preferred car insurance policies of car owners. The primary reason behind is that that it does not only shoulder third-party liabilities, but also pays for the damages that are caused to your own car. This means that its coverage does only protect you from unforeseen accidents, but also has the power to ensure that your car is at its greatest shape in case of simple mishaps. Listed below are the inclusions of this type of car insurance:

  • Third-Party Liability Protection: What’s good about a Comprehensive Car Insurance is it does not only protect you from other people’s damages. It also has the line item to protect you from any monetary losses at times that you’re the one who damages a third party.
  • Car Theft: One of the most heartbreaking car problems that you might face is car theft. Thankfully, you won’t have to worry about the lost money since the insurance will compensate for this.
  • Non-Moving Damages: Comprehensive Car Insurance also includes the coverage of damages when you are not driving the vehicle. This includes vandalization and flying objects.
  • Natural Disasters Protection: One inclusion of this insurance type is the coverage on Natural Disasters. Should you face earthquakes, storms, flood, and more, the damages to your cars will be shouldered by the insurance.
  • Breakdown Assistance: One add-on that you can include in the personalization of your insurance is the breakdown assistance. This will never be counted as a claim. However, you have the option to call your insurance provider anytime you have a car breakdown as they are just a ring away!

Keep in mind that that the law does not require Comprehensive Car Insurance but it’s recommended to have one as it offers more protection to the motorist. 




Given the extent of the coverage of this insurance, the price that you have to pay is higher. The usual value of the standard package falls around Php 12,000 per year. But if you want to have more add-ons to your package, your annual premium can go as high as Php 20,000.


What is a Third Party Liability (TPL) Insurance?


Source: Wikipedia Commons


The most basic car insurance there is is the Third Party Liability (TPL) Insurance. Compared to a Comprehensive Car Insurance, it only protects you from third-party damages but won’t shoulder for your own damages. For instance, if you bumped another car while backing from the drive way, the insurance company will shoulder the expenses you’ve caused. 


Keep in mind that this also excludes if the accident was caused by the other party. TPL only covers damages that you have created, but not the other way around. Responsibility also includes only when the vehicle is not in motion. They do not consider if the car is not being driven by the owner.

What are the exclusions of both insurance?

These insurances have their differences but when it comes to the exclusion of coverage, they almost have the same list. Listed below are the items you should remember: 

  • Driving Without License: The law states that the claims won’t cover the damages if the person driving has no license.
  • Driving Drunk: If findings reveal that the damages were caused by a drink driver, these insurances won’t also pay for the damages.

Which insurance should I go for?

It does not mean that because the Comprehensive Car Insurance has more inclusions in the package is that it’s the better option for you. There are still other factors that you have to consider before making your decision.


For example, one thing that should be a determiner for you is the age of the car. If you are driving an old car or if you barely use it, then it might be better for you to just go for a TPL. But if you’re housing a brand new car, it is recommended to pay for a Comprehensive Car Insurance instead as this will lessen your expenses should accidents happen.


These insurances might be hard to understand at first. However, make sure to immerse yourself with all of the technicalities before signing with your insurance agent. Goodluck!

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