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The Biggest Insurance Mistake Filipinos Make After Moving to America
- Mark Vincent Ellema
- 3 days ago
- 3 min read
Moving to the United States is a major milestone—new opportunities, higher income potential, and a better future for your family. But with all the adjustments, there’s one critical area many Filipinos overlook:
Insurance.
At Insure Connecticut LLC, we’ve worked with many Filipino individuals and families who unknowingly made a costly mistake early on—one that can lead to serious financial consequences.
Let’s break it down.
The #1 Mistake: Choosing Minimum Coverage (or No Coverage at All)
Many Filipinos coming to the U.S. carry over a mindset from the Philippines:
“I’ll just get the cheapest option.”
“I don’t need full coverage.”
“Nothing will happen anyway.”
In the U.S., this approach can backfire—fast.
Why This Is a Big Problem
Minimum insurance coverage may:
Meet legal requirements
Keep your premium low
But it often does NOT protect you financially.
Real Risk Scenario:
You get into a car accident and cause $50,000 in damage—but your policy only covers $25,000.
You pay the remaining $25,000 out of pocket.
That’s not just stressful—it can be financially devastating.
Why This Mistake Is Common Among Filipinos
1. Different Insurance Culture
In the Philippines, insurance is often:
Optional
Less regulated
Lower cost
In the U.S., it’s:
Essential
More complex
Financially critical
2. Focus on Saving Money Early
New immigrants prioritize:
Rent
Sending money (remittances)
Daily expenses
Insurance feels like something you can “delay”—until it’s too late.
3. Lack of Guidance
Many Filipinos:
Don’t fully understand U.S. policies
Rely on quick online quotes
Don’t work with a broker
That leads to underinsurance.
The Real Cost of Being Underinsured in the U.S.
Choosing the cheapest policy can cost you more in the long run.
Here’s what’s at stake:
Situation | What Happens Without Proper Coverage |
Car accident | You pay damages beyond your limit |
Medical emergency | High out-of-pocket expenses |
Lawsuit | Your savings and assets are at risk |
Home damage | Incomplete or denied claims |
In the U.S., one accident can set you back years financially.
What Filipinos Should Do Instead
1. Go Beyond Minimum Coverage
Don’t just meet the legal requirement—protect your future.
Recommended:
Higher liability limits
Comprehensive + collision (for auto)
Umbrella insurance for extra protection
2. Understand Key Insurance Types
Liability (required)
Collision & comprehensive (recommended)
Essential in the U.S.
Medical bills can be extremely high without it
Protects your family (especially if you send money home)
Covers belongings and liability
3. Work With an Independent Insurance Broker
Instead of guessing, get expert guidance.
A broker can:
Compare multiple insurance companies
Customize coverage based on your needs
Explain policies in simple terms
This is especially helpful if you’re new to the U.S.
Bonus Tip: Build Insurance Into Your Financial Plan
Think of insurance as:
Protection for your income
A safety net for your family
A long-term financial strategy
Not just another expense.
Common Insurance Mistakes Filipinos Should Avoid
Choosing the cheapest policy without understanding coverage
Skipping health insurance
Not increasing coverage as income grows
Ignoring liability risks
Not reviewing policies annually
Why This Matters More for Filipino Families
Filipino culture is deeply family-oriented.
Many individuals:
Support relatives back home
Are primary breadwinners
Carry financial responsibilities across borders
One unexpected event in the U.S. can affect multiple families, not just one household.
How Insure Connecticut LLC Can Help
At Insure Connecticut LLC, we help Filipino individuals and families:
Understand U.S. insurance clearly
Find affordable, customized coverage
Avoid costly mistakes
Protect what matters most
We work with multiple top-rated insurance carriers to give you better options—not just one quote.
Final Thoughts
The biggest mistake isn’t just buying insurance—it’s buying the wrong coverage.
If you’ve recently moved to the U.S., take the time to:
Review your policies
Ask questions
Get expert advice
Because in America, being underinsured isn’t just risky—it’s expensive.
Frequently Asked Questions:
Do Filipinos in the U.S. need more than minimum car insurance?
Yes. Minimum coverage may not fully protect you financially in serious accidents.
What is the most important insurance for new immigrants?
Health insurance and auto insurance are typically the most critical.
Is insurance more expensive in the U.S. than in the Philippines?
Yes, but it also provides significantly higher coverage and protection.
Can I get affordable insurance as a new immigrant?
Yes. Working with a broker helps you find competitive rates and proper coverage.
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