Buying insurance for your vehicle is a lot like buying a fire extinguisher: you pray you’ll never need it, but you feel better knowing it’s there anyway. However, many car owners are concerned about the cost of auto insurance and whether they can afford it or not.
If you want to know the car insurance prices in the Philippines, you’re reading the right article. You’ll also learn why car insurance is a must-have for every driver and who the best insurers in the country are.
Is Car Insurance Worth It?
Short answer: yes! No matter how protective you are of your car and how careful you are with your driving, you will never know when an accident will happen.
Here are some reasons why car insurance is worth it:
- You won’t need to tap into your savings – If you get into an accident and it’s your fault, you may find yourself breaking your piggy bank to pay for repairs. But if you have car insurance, you need to just contact the insurer to file a claim.
- It’ll save you time – Dealing with a car accident can be time-consuming. If you don’t want to deal with towing, repairs, and replacement, your insurer can take care of those matters. Moreover, repairs can be quick since insurance companies have a network of casas or workshops.
- You’ll get high-quality repairs – Insurance companies only partner with repair shops that have a proven track record. Basically, your car is in good hands. You will be assured that your car will still work properly once it exits the mechanic’s workshop.
- It’ll financially protect you from natural disasters – Knowing that the Philippines is regularly ravaged by typhoons every year, it only makes sense to get car insurance.
- It’ll complement your existing insurance – Got personal accident insurance or life insurance with accident cover? Good! Still, a car insurance policy with accident benefits can supplement your existing policies. If your car insurance policy is comprehensive enough, you might not even need to use your life or personal accident car insurance to deal with medical expenses.
- You get extra benefits – Car insurance companies offer value-added services. For instance, roadside assistance includes towing, tire replacement, and fuel delivery. Also, in cases where your car can’t be repaired immediately, the insurer may pay for your hotel accommodation and travel costs.
- You may get free legal services – Some insurers offer legal assistance that you can use to navigate trickier incidents.
You get peace of mind – Without car insurance, you might feel stressed every time you hit the road. You’ll wonder where to get money in case you figure in an accident—doubly so if you live in a flood-prone area. When you buy car insurance, you also buy peace of mind.
What are the Two Major of Car Insurance in the Philippines?
Generally, there are two types of car insurance in the Philippines: Compulsory Third Party Liability (CTPL) insurance and comprehensive car insurance. While they offer different levels of protection, both are important for car owners.
Here are the differences between the two:
📌 CTPL Insurance
The CTPL (also called TPL) is a type of insurance coverage that will financially protect you in case you incur damage to a third party. In this context, a third party is someone who isn’t a passenger in your car, such as a pedestrian. This policy doesn’t cover you and your passengers.
The government requires all drivers to get a CTPL policy before they hit the road. This is stipulated in Section 389, Chapter VI of the Insurance Code of the Philippines.[1]
It’s a common misconception among new car owners that CTPL insurance is all they need. But keep in mind that you cannot substitute it for an extensive car insurance policy that can protect you and your passengers.
Note: As per the Insurance Code of the Philippines, a third party also refers to passengers who aren’t the car owner’s employees or family members within the second degree of consanguinity or affinity. This simply means they’re also covered by CTPL insurance.
📌 Comprehensive Car Insurance
A comprehensive car insurance policy offers wider coverage than CTPL. It covers not just third parties but also you and your passengers. This policy will protect you from a wide variety of incidents—from accidents and natural disasters to theft and even riots.
A comprehensive car insurance policy can be customized depending on your budget and needs. Increased protection means more expensive premiums, while minimal coverage may mean cheaper premiums.
CTPL Car Insurance Price in the Philippines
Price range: ₱300 to ₱1,500 per year
A CTPL policy isn’t that pricey. It ranges from around ₱650 or lower to ₱1,500 per year, depending on the type of your vehicle. Its affordable price tag can be attributed to its limited protection.
👉 Best CTPL Insurance in the Philippines
How much does car insurance cost? For CPTL, here are the prices from some of the country’s top insurers.
| TPL Provider | Premium Starts at | Vehicles Covered |
|
OONA Insurance (formerly MAPFRE)
  |
Starts at ₱290/year | Motorcycles, private cars and SUVs, light/medium/heavy trucks, taxis, PUJs, mini-buses, PUBs, private buses, and tourist buses |
|
Prudential Guarantee
 |
Available upon request from the insurer |
Private cars |
|
Mercantile Insurance
 |
Available upon request from the insurer |
Private automobiles, motorhomes, motorcycles, scooters, mobiles, buses, road building equipment, and trailers |
|
SGI Philippines
 |
Available upon request from the insurer |
Private cars, motorcycles, and commercial vehicles |
|
Standard Insurance
|
|
Private cars, (including jeeps and AUVs), motorcycles, tricycles, trailers, light/medium trucks, and heavy trucks |
|
Stronghold
 |
Available upon request from the insurer |
Private cars, commercial vehicles, and motorcycles |
|
Paramount Life & General Insurance 
|
Starts at ₱296/year |
Motorcycles, tricycles, trailers, PUBs and tourist buses, taxis, PUJs, light/medium trucks (own goods), heavy trucks (own goods), tourist cars, and private cars (including jeeps and utility vehicles) |
|
Pioneer Group  |
Available upon request from the insurer |
Private and commercial vehicles |
|
FPG
 |
|
Motorcycles, tricycles, trailers, PUBs and tourist buses, taxis, PUJs, light/medium trucks (own goods), heavy trucks (own goods), tourist cars, and private cars (including jeeps and utility vehicles) |
|
Malayan Insurance  |
Available upon request from the insurer |
Private and commercial vehicles |
Read more: Find the Coverage You Need: Top Car Insurance Companies
Comprehensive Car Insurance Price in the Philippines
Price range: ₱10,000 to ₱100,000+ per year
Compared to CTPL coverage, comprehensive car insurance is more expensive. But such a car insurance cost is a small price to pay, considering its extensive coverage. Certain car insurance add-ons will come in handy, especially if you live in an area where the risk of car damage is high.
How much is comprehensive car insurance in the Philippines? If you have a basic, affordable car, you may get annual car insurance for less than ₱10,000.
For mid-tier vehicles, the average car insurance price in the Philippines may range from around ₱10,000 to ₱20,000 per year.
On the other hand, those who own luxury vehicles like Mercedes-Benz, Audi, or Land Rover, may need to pay more than ₱100,000 per year.
To find out how much it will cost you to insure your vehicle, compare affordable car insurance quotes for free here at Moneymax.
💸 Factors That Affect Comprehensive Car Insurance Prices in the Philippines
Comprehensive car insurance rates rely heavily on several criteria, such as the following:
- Car type and model – Expensive vehicles[2] tend to fetch a higher insurance cost. The same applies to the car type. For instance, sports cars come with more expensive insurance since they’re riskier and more expensive to repair. Smaller cars like hatchbacks, on other other hand, fetch less pricey premiums.
- Vehicle condition – Brand-new units are more expensive to insure due to certain factors, such as depreciation.
- Safety features – Cars with a lot of safety features may be a tad expensive. However, they’re cheaper to insure.
- Accessories – If you've customized your vehicle, you may need to apply for special coverage. This is because your unit doesn’t possess its original specifications anymore.
- Inclusions – Basic coverage isn’t pricey. However, it doesn’t always provide complete and reliable protection. The more inclusions you have, the more expensive your insurance will be.
- Credit history - Your other financial obligations, such as loans and credit dues, may have an effect on your car insurance rates. If you have a good record, you may enjoy favorable insurance premiums.
- Age - Younger drivers may find themselves paying more expensive insurance costs. This is because they’re considered less experienced, which may account for higher road risks.
- Profession - Those with high-risk jobs may be required to cover higher premiums. These include the likes of truck drivers.
Read more: How to Get Car Insurance for Second-Hand Vehicles in the Philippines
Types of Coverage to Consider When Shopping for a Comprehensive Policy
With a comprehensive car insurance policy, you have the freedom to get the inclusions that you want. Here are some of them for your consideration:
- Own Damage and Theft cover reimburses the car owner in case their vehicle gets damaged or stolen.
- Acts of Nature (a.k.a. Acts of God) cover is ideal for those at high risk for natural calamities such as floods, typhoons, and earthquakes.
- Personal Accident or PA covers the medical expenses of the vehicle’s driver and/or passengers in an accident.
- Property Damage or Voluntary Third Party Liability (VTPL) pays for the damages caused by your motor vehicle to other people’s properties in case of an accident. Your insurer will cover the damage regardless of who is at fault.
- Riot and Strike Coverage covers the cost of repair in the event your vehicle is damaged during a riot, strike, and in some cases, civil commotion.
- Loss of Use cover reimburses the additional expenses incurred by car owners whose vehicles undergo repairs after an accident.
- Value-added services may include casa repair and technical assistance. These are particularly helpful if you want high-quality repair from a trusted provider.
- Roadside assistance provides clients with towing in case the car breaks down. It may also include on-site repairs and hotel accommodation in case your car can’t be repaired right away or within the day.
How to Compute and Estimate Your Insurance Premium
To give you an idea of how insurers compute your car insurance premium, below is a sample computation you can refer to.
However, take note that this computation only provides an estimate of a car insurance cost in the Philippines. For a more accurate number, use your preferred insurer’s car insurance calculator in the Philippines or request a free quote from Moneymax.
🔢 Sample Premium Computation
First, you have to compute your insured declared value (IDV), which is the value set by the insurance company based on the original price and age of the car.
Your IDV will depend on your car's age and its percentage of depreciation. Below are the percentages you can refer to:
- 50% - for cars exceeding four years but not five years
- 40% - for cars exceeding three years but not four years
- 30% - for cars exceeding two years but not three years
- 20% - for cars exceeding one year but not two years
- 15% - for cars exceeding six months but not one year
- 5% - for cars not exceeding six months
So for example, if your car is worth ₱1.5 million and exceeds six months but not one year, your initial computation is:
₱1.5 million x 15% = ₱225,000
After this, the next step is to determine your damage factor. The motor car tariff for private vehicles is as follows:
- Own Damage and Theft: 1.25 to 3.75%
- Theft only: 1.00%
- Fire only: 0.50 %
- Minimum deductible of ₱2,000 or 0.5% of the sum insured (SI), whichever is higher
- Deductible discount will be computed as follows:
- 0.75% of SI, minimum ₱3,000: 6.00%
- 1.00% of SI minimum ₱4,000: 12.00%
Let's say your damage factor is 3%, your premium should follow this computation:
₱225,000 x 3.00% = ₱6,750
Got a discount from your insurer? Don't forget to deduct the amount from your computation.
₱250 discount from provider = ₱6,500
Add the cost of CTPL. CTPL for private cars is typically around ₱650. So, ₱6,500 + ₱650.
If there are any additional fees, don't forget to add them to your sample premium computation.
Read more: What is Car Insurance Participation Fee and How Much Does It Cost?
🚗 Sample Premium for Different Car Models
Below are the different car insurance prices for top car models in the Philippines. Note that these are the lowest rates and may change depending on your chosen insurer.
Note: Most car insurance providers in the Philippines require an annual payment of premiums. Hence, the car insurance prices for one year. The car insurance monthly price estimates are included only to give you an idea of how much you'll need to allot for it from your monthly budget.
How to Reduce the Price of Car Insurance in the Philippines
Car insurance is an additional yet necessary expense. Thankfully, there are various ways to lower your premium while making sure that you are adequately protected.
✔️ Compare Different Providers
Don’t just go for the first insurer that comes your way. Talk to at least three companies and check out their car insurance rates and inclusions. Using these details will point you to the provider that offers the best value for money.
If you aren’t still sure about your choice, ask around. Your close friend may refer you to a reputable insurer. You may also read reviews on an insurer’s claims process.
When choosing an insurer, make sure you can actually afford their policy. After all, insurance is a financial obligation.
✔️ Check the Factors That Affect Car Insurance Rates
Certain factors can drive up car insurance rates. These include your age, location, vehicle type, participation fee, and whether the vehicle will be used for commercial or private use. Ask your agent about these details to determine the possible cost of your policy.
✔️ Take Advantage of Discounts and Special Offers
From time to time, car insurance companies offer discounts that can reduce your premium. They usually offer such promos to clients with a good driving history.
Are you loyal to your insurer? You may want to leverage your relationship with them to get a good deal. It won’t hurt to ask your agent about it.[2]
✔️ If Possible, Fully Pay Your Premium
Some insurers allow clients to pay their insurance premium in monthly installments. This seems a practical strategy compared to paying one big lump sum. However, the latter payment option may save you money in the long run. That’s because some insurers offer a discount when you pay the year’s car insurance in full.
✔️ Increase Your Deductible
A deductible is an amount your insurer will not cover in case of an accident or event that will invoke your insurance. It’s recommended to go for a smaller deductible so that you won’t have to shell out a large amount of money when an accident strikes. The downside, however, is that you’ll need to pay a higher premium.
Following that logic, you can reduce your car insurance rates by choosing a higher deductible. The trade-off, however, involves covering a higher deductible when you file a claim.
✔️ Buy a More Affordable Car
Looking at the table of sample insurance premiums above, you’ll notice that the more expensive the car is, the pricier its insurance gets. If you’re buying a new car and you’re thinking of future expenses, consider getting a more affordable unit. While you’re at it, choose an auto with a good safety record, as it may also help in reducing your insurance premium.
✔️ Check Your Coverage
The number of inclusions can affect car insurance rates. The good news is that you can opt out of certain inclusions, thus lowering your premium.
First, assess your risks. For instance, you may drop theft and riot coverage if you live in a peaceful community. Got an old car? Drop auxiliary inclusions and focus on essentials, such as personal accident, collision, and the like.
But just a word of caution: think twice about settling for the cheapest premium. While affordable, you may not get the protection that you actually need.
✔️ Go for Bundle Discounts
Some insurance companies offer discounts if you buy two or more policies. Take advantage of this feature to save money in the long run. Ask your agent if you can get a discount if you purchase home, life, and car insurance policies in one go.
✔️ Be a Better Driver
Being a careful and considerate driver can earn you low car insurance rates. Some insurers offer discounts to policy owners who don’t file claims for the entire year. This is because they see them as low-risk drivers.
✔️ Boost Your Credit Score
You may not realize it, but a lot of insurance companies actually check the credit score of their applicants. They want to make sure that their prospective clients have the capacity to accommodate financial obligations like recurring payments. They reward responsible clients with good deals and discounts.
If you already have a favorable credit score, you shouldn’t worry. Otherwise, you need to start boosting your score by paying your debts on time.
Got Your Car Insurance? Here’s What to Do Next
After checking the car insurance rates and talking to different agents, you’ve finally found a suitable policy. Congratulations! Here are some of the things you should do next:
✔️ Keep Your Policy Somewhere Safe
The insurer will provide you with either a physical or digital copy of your policy (or both). Keep your policy somewhere safe yet accessible, so you can review it from time to time. You may also choose to save a digital copy[3] in the cloud or on your mobile phone just in case you need it right away. It’s also wise to keep a photocopy of your policy in your car’s glove compartment so that you can easily access it in case of emergency.
✔️ Know Who to Contact
Nobody wants to have to use their car insurance policy. Still, it pays to have the phone number or email address of your insurer’s client services department or claims team on hand. Your insurer’s contact details also come in handy in case you have questions about your policy.
This is particularly important during emergencies, such as car breakdowns. You can quickly avail of roadside assistance, such as towing, overnight accommodation, or relay of messages.
If you don’t know these pertinent details, just visit your insurer’s website. You may also ask your agent about them.
✔️ Don’t Miss Your Payments
Paying your car insurance is an obligation that you need to religiously fulfill. Missing payments comes with consequences.
For one, your insurer will cancel your policy. Subsequently, you’ll lose your coverage and you won’t be protected in case an incident happens.
Thankfully, insurers usually have a grace period when it comes to payments. Just make sure you don’t go beyond it.
Pro tip: If your bank and insurer allow it, automate your payment so you don’t miss the due date.
✔️ Have a Plan in Case an Incident Happens
Even if you’re a virtuous and careful driver, untoward incidents can happen. It’s also wise to anticipate them, so you know what to do just in case. Keep the following in mind:
- Keep a flashlight and warning triangles (or cones) in the trunk of your car. They’ll come in handy during nighttime breakdowns. The triangles or cones, for instance, will make your vehicle on the road and keep others car from driving too close.
- Make sure that you have a first aid kit in your car.
- After an accident, check the well-being of everyone in the car right away. Even if no one feels pain or discomfort, it’s still wise to take everyone (including yourself) to the hospital for further examination. After all, internal injuries are not always obvious immediately after an accident.
✔️ Know the Dos and Don’ts of Claims Application
In case the unthinkable happens, you should know what to do. Here are some of the things to keep in mind when activating or using your car insurance policy:
- Do inform your insurance company. No matter how simple or serious the incident is, you should call your insurer right away. They will walk you through what you need to do to file your claims. Likewise, they will inform you of the pertinent documents you need to submit.
- Do submit a police report. Filing a police report may be a hassle, but it’s important in strengthening your claim.
- Do take photos and videos of the incident. You’ll need them for your insurance claims. Document the damage sustained by your car and the other party’s vehicle. Cover the damaged properties, skid marks, and even the traffic signs (e.g., speed limit) that may help build your case.
- Do check the time frame. Keep in mind that your car insurance policy may have a time parameter. If you report the incident beyond a certain period, your insurer may not process your claims application.
- Do know the claims channels. Insurers maintain various channels for claims, from websites to telephone numbers. Choose the most convenient for you.
- Do follow up. Sometimes, processing takes time, depending on the gravity of the situation. Don’t hesitate to ask the insurer for an update.
- Do avail of the insurer’s free legal assistance. As mentioned, some insurers offer legal services or referrals you can use if the case gets complicated.
- Do file a dispute with the car insurance company if your claim is rejected. Request a review to see if they missed a detail.
- Don’t withhold information. When explaining what you went through, tell everything to the best of what you can remember. Don’t lie, as it will be seen as fraudulent.
- Don’t speculate. Stick to what you know and be objective. Remember, you may not have the full and exact information on how the accident has happened.
- Don’t negotiate or settle with the other driver right away. They won’t know the real cost of the damage—all they can provide is an estimate. Deal only with the insurer.
- Don’t agree on a settlement without talking to a lawyer. Have someone check the waiver to make sure that what you’re getting is just fair.
- Don’t make arrangements with dubious personalities. These include third parties promising to compensate you for the damages. You may end up getting the short end of the stick. Worse, you might get scammed.
- Don’t forget the receipts. Keep them so you’ll be able to receive fair compensation. Make sure you have receipts for vehicle repair costs and medical bills (including future treatments).
✔️ Update Your Policy When Necessary
Before you renew your policy, you may want to update it based on changes in your lifestyle and financial health.
If you’ve moved to a new address prone to natural disasters, add an Acts of Nature cover. On the other hand, you may consider removing theft cover if you live in a top-rated and safe neighborhood. Get roadside assistance if you frequently use your car for rural journeys.
Likewise, update your policy after significant changes in your life, such as a marriage, work promotion, or new family member. For instance, you’ll need to add your spouse or child to your policy.
✔️ Get Complementary Insurance
Getting car insurance is wise. But it’s wiser to bump your protection up by getting complementary policies. For instance, get a personal accident policy if you don’t have one yet. If you have a vintage car, consider getting a policy that covers collectibles and classic items.
Of course, this is easier said than done since an additional policy is an extra expense. But if you can afford it, don’t hesitate to expand your coverage.
✔️ Switch to a New Insurance Provider–But Only When Necessary
Keep in mind that you don’t have to stick to your existing insurer. If you don’t find their coverage and customer service satisfactory, consider switching to a different provider. It's also a valid move if your existing provider’s rates are too expensive for you.
Before switching to a new insurer, consider some factors. Ask about the cancellation fees and the required documents for processing your request.
Read more: How to Change Car Insurance Companies: A Step-by-Step Guide
Final Thoughts
Car insurance is an additional expense to think about. However, the premium is a small price to pay, especially if the inclusions and benefits are comprehensive. After all, peace of mind is priceless.
When buying car insurance, exercise utmost caution. It’s not uncommon for shady fly-by-night operations to sell fake CTPLs at irresistibly low rates or convenient locations close to major LTO hubs. Don’t be tempted by cheap car insurance in the Philippines price—if it’s too good to be true, it probably is.
Whether you’re getting basic or comprehensive coverage, see to it that you choose a reputable insurance provider with a background in non-life insurance products. When you compare products here at Moneymax, you'll find a variety of the cheapest car insurance prices in the Philippines from the most trusted providers. Start your search for the best car insurance here!
Source:
- [1] Chapter VI, Compulsory Motor Vehicle Liability Insurance
- [2] What are the Most Expensive Cars in the World? (Yahoo!, 2024)
- [3] How to Back Up Your Digital Life (Wired, 2023)
Back to Blog 
