Get the right car insurance for you!

How much does car insurance cost?

What is car insurance?
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Car insurance covers you from the costs of medical bills, property damage, and vehicle damage after a car accident. It serves as your peace of mind when you’re driving your vehicle on a regular basis.
Is car insurance required in the Philippines?
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Yes, car insurance is required in the Philippines. There are two types of auto insurance in the Philippines, one of which is required and the other optional:
CTPL insurance or Compulsory Third Party Liability is a Land Transportation Office requirement for car registration in the Philippines. It covers the financial responsibilities associated with bodily injury, permanent disablement, and/or death of the victim or third party. CTPL insurance doesn’t cover you.
Comprehensive insurance is an all-inclusive type of motor insurance. It is not mandatory to have but it is highly recommended to get one. It covers not only your vehicle but also you and your passengers from road-related risks and hazards.
What are the common motor insurance terms?
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It’s easy to get lost in a sea of unfamiliar words when you first read your motor insurance policy. It might also be hard to recall your car insurance agent’s explanation of the terms but we’re here to refresh your memory. Below is a list of commonly used car insurance terms you’ll encounter:
1st PartyAlso called the Assured. This is the owner of the vehicle and the insurance policy.
2nd PartyAlso called Insurer. This is the insurance company where you applied for car insurance.
3rd PartyThis refers to the other person/people involved in the accident that’s not the 1st party, the 2nd party, or relatives or employees of the 1st party. A good example would be bystander/s and/or person/s in the other car/s involved, or your passengers that aren’t your relatives or employees.
Agreed ValueThe amount the insurance provider will pay if your car gets totaled or stolen. This is a fixed amount that you and the provider have agreed on at the start of your policy term.
At FaultThe amount the insurance provider will pay if your car gets totaled or stolen. This is a fixed amount that you and the provider have agreed on at the start of your motor insurance policy term.
CertificateOne of the documents you’ll receive as part of your motor insurance policy. It’s also one of the most important because this serves as proof that your car is insured.
ClaimA request filed by the insured and sent to the insurer to cover or reimburse expenses from damages or loss of your car or other coverages as stated in your insurance policy.
Deductible FeeA type of participation fee that involves a car accident or loss and an investigation proves that you’re at fault. Some policies don’t include deductibles and for those that do, it should follow the Motor Tariff’s minimum deductible fee. You can increase your deductible fee if you want to lower your insurance premium.
Depreciation FeeA type of participation fee for your car’s damaged or lost parts due to an accident or loss. The amount will depend on the value of the new parts when it was damaged or lost compared to its value when the vehicle was purchased. This is only applicable to vehicles older than 3 years and is not applicable to total vehicle loss.
Fair Market ValueThe amount the insurance provider will pay if your car gets totaled or stolen. This is based on your car’s make, model, mileage, age, variant, and overall status at the time of the incident.
Legal AssistanceA type of coverage that provides financial assistance for legal fees in case you get into an accident that will be taken to court.
Loss of UseA type of coverage that provides transportation allowance while your car is being repaired.
Participation FeeThe amount that you need to pay out of your pocket before the insurance provider pays for the rest of the expenses.
Policy ScheduleThis document details the coverage of your motor insurance such as the type of coverage and add-ons, and includes the pricing related to it. Depending on the type of insurance you chose, it will indicate the specifics of the agreed or market value that the insurance will pay for and the participation fee.
PremiumThis is the amount that you’ll pay to your insurer for your vehicle insurance policy.
Roadside AssistanceThis is a type of add-on to your vehicle insurance if you want your coverage to include car issue support while on the road like towing, tire replacement, battery jumpstart, lockout services, and fuel delivery.
SurchargeThis is an added cost to your premium due to an at fault accident, filing several claims, or filing for an expensive claim.
TotaledAlso called write-off. When a vehicle is marked as totaled by the insurance provider, it means that the cost of repairs will exceed the vehicle’s market value.
What types of car insurance coverage can I get?
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Aside from CTPL, which is a requirement of the Land Transportation Office, car insurance coverages aim to protect you, your passengers, and your vehicle from road accidents or incidents that will cause harm or poses a threat. Insurance providers offer several options that consider situations a driver needs protection from with comprehensive car insurance coverage as your best bet since it covers most of your needs. There are other coverages that you can get for additional protection but note that this will also cost you more. Below are the most common car insurance coverages offered in the Philippines:
1. Comprehensive Car Insurance Coverage - protects your vehicle from a wide range of causes, from motorist accidents and property damage to Acts of Nature and vandalism.
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Own Damage/Theft - covers car damage, loss, and damage/loss of declared accessories and spare parts. In extreme cases like car robberies, fires, or explosions, your car insurance will handle all repair expenses.
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Property Damage or Voluntary Third Party Liability (VTPL) - covers damages caused by your vehicle to other people’s properties in the event of an accident. Regardless of who is at fault, your insurance will cover all property damages.
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Personal Accident or Auto PA - covers the insured individual and the unnamed passengers inside the vehicle in the event of injury, disablement, or death caused by a vehicular accident. Usually, it comes free with your insurance policy.
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Acts of God - covers damages caused by extreme natural disasters such as earthquakes and floods, and even animal contact. Acts of God is a popular coverage in the Philippines due to unpredictable weather conditions.
2. Liability Coverage - covers the cost of the damaged property or the medical bills of people injured in the accident up to a certain amount as specified in your policy.
3. Collision Coverage - takes care of the damages inflicted on your car. If your car received major dents from a freak collision accident, this type of motor insurance coverage will cover the repair costs.
4. Personal Injury Protection Coverage - takes care of the passengers involved in a road accident. You’ll need it to take care of you and your passenger/s’ medical expenses.
What are the top car insurance companies in the Philippines?

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Here are some of the top auto insurance providers to help you compare their features.

Car Insurance Company	Casa Eligibility	Accredited Repair Shops	Maximum Total Sum Insured	Overnight Accommodation	Towing Services	Vehicle Removal Crane Services
OONA Insurance	10 years	365	₱5,000,000	Yes, up to ₱3,000	Yes, up to ₱5,000	Yes, up to ₱10,000
Malayan Insurance	3 years	58	₱7,500,000	Yes, up to ₱1,000	Yes, up to ₱4,000	Yes, up to ₱8,000
Prudential Guarantee	10 years	N/A	₱3,000,000	Yes, up to ₱2,000	Yes, up to ₱5,500	Yes, up to ₱15,000
SGI Philippines	5 years	134	₱5,000,000	Yes, up to ₱2,000	Yes, up to ₱5,000	Yes, up to ₱10,000
Stronghold Insurance	10 years	167	₱3,000,000	N/A	N/A	N/A
The Mercantile Insurance Corporation	10 years	77	₱5,000,000	Yes, up to ₱2,000	Yes, up to ₱5,000	Yes, up to ₱10,000
Standard Insurance	15 years	504	₱5,000,000	Yes, up to ₱2,500	Yes, up to ₱4,000	Yes, up to ₱10,000
FPG Car Insurance	5 years	172	₱4,000,000	Yes, up to ₱1,500	Yes, up to ₱5,000	Yes, up to ₱10,000

The table below shows the performance of car insurance providers in terms of net premiums written as reported by the Insurance Commission last 2021.

Car Insurance Company	Name Premium Written
Malayan Insurance Company Inc	₱4,079,633,561
Prudential Guarantee & Assurance, Inc.	₱3,900,308,008
Mercantile Insurance Company, Inc.	₱2,095,972,724
Standard Insurance Company Inc.	₱1,676,285,352
FPG Insurance Co., Inc.	₱1,454,027,271
Stronghold Insurance Company, Inc.	₱1,439,102,792
OONA Insurance Philippines	₱686,115,017
SGI Philippines General Insurance Company, Inc.	₱93,536,051

How can I get free car insurance quotes online?
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An efficient way to get quotes is to use a vehicle insurance comparison website like Moneymax that aggregates quotes and other details from multiple insurance providers in the Philippines. Your motor insurance quotation will be based on several factors, such as your car’s age and fair market value, and the motor insurance coverage and add-ons that you plan to include in your policy. Once you’ve requested a quote, you’ll receive a call from a car insurance advisor for further confirmation and a more in-depth look at your possible policy.
What are the requirements to get car insurance online?
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Below are the documents you’ll need to submit to get motor insurance online. You'll know at a glance if you have all the requirements or if you might need to give the Land Transportation Office a visit.
1. Your vehicle’s Original Receipt (OR) and Certificate of Registration (CR)
2. Driver’s license
3. Any valid ID, apart from the license
4. For second-hand vehicles: Deed of sale
5. Previous vehicle insurance policy, if any
6. Photos of your car
Most of the legwork involved is getting these documents to a scanner and saving high-resolution images and PDFs before sending them over via email.
Why should I get car insurance online?
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1. Save time searching and comparing quotes. Convenience is the biggest advantage of shopping for auto insurance online. The hours spent collecting and comparing quotes have been reduced to minutes. Through a car insurance comparison site like Moneymax, you can compare quotes from a variety of insurers in one go and find the best car insurance at the lowest cost.
2. Purchase vehicle insurance conveniently. When you get car insurance online, you won’t have to go out to visit the motor insurance company’s office, get stuck in traffic on your way there, and wait in line. You can easily process your application without leaving your home or while you’re on the go.
3. Save on auto insurance costs. Along with the time-saving benefit of getting car insurance online, you’ll also save money traveling back and forth to the provider’s location. Instead of meeting an agent, you can just transact via email, chat, or phone for processing your application or making any inquiries.
4. Get your policy faster. Processing a motor insurance policy offline involves a lot of physical documents, which can be time-consuming on the part of the provider or broker. Doing it online makes the process quicker, so you can receive your policy in just 1 or 2 business days.
5. Access your policy anytime, anywhere. It’s easier to retrieve your car insurance policy if you got it online instead of the traditional means. You have a soft copy of it in your email and can even save a copy on your smartphone or tablet. When you have to review your policy, you can just access it from your email or phone anytime and anywhere you need it.
6. Renew your policy more easily. Motor insurance policy renewal is just as convenient as your first-time purchase—as long as you do it online. Because all your personal, vehicle, and policy information is saved online, the car insurance company can easily access it when it’s time to renew your policy.
7. Save the environment. For environmentally-conscious car owners, buying car insurance online is a great way to save trees and reduce their carbon footprint. Since the entire process doesn’t involve using lots of paper and printing, you’re contributing to the efforts to conserve the environment.
How do I get cheap motor insurance?
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Different factors affect auto insurance prices in the Philippines. Some of them you cannot control, but there are actions you can take to increase or decrease car insurance costs. Here are the different ways to save money on your auto insurance:
1. Increase your deductible. A deductible is a part of the participation fee that you pay out of pocket when you make a vehicle insurance claim. You can pay an amount higher than the standard deductible to reduce your monthly vehicle insurance premiums. But note that your out-of-pocket expenses will be higher when you get involved in a car accident.
2. Maintain a good driving record. The longer you drive without figuring in an accident or traffic violation, the more the insurers will see you as low risk and might quote you a lower premium. Some motor insurance providers even offer discounts to policyholders who had no claims for an entire year. Improve your driving habits, follow traffic rules, and if necessary, take a defensive driving course from a driving school.
3. Improve your credit score. Studies prove that people who are responsible with their finances tend to be responsible and are therefore less likely to make a claim. Thus, a number of auto insurance providers consider credit scores when setting premiums. To lower your car insurance rate, pay your bills and debts on time, check your credit score, and have it corrected (if needed).
4. Choose a vehicle that costs less to insure. This tip is crucial for first-timers who will purchase a new car along with their motor insurance policy. Different factors such as a vehicle’s fair market value, safety, make, model, and year affect a vehicle insurance price. Here’s what to look for in a vehicle if you’re trying to save money on car insurance costs:
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Less expensive models—like those from Toyota, Honda, and Nissan—with lower repair costs than premium models and replacement parts that are readily available in the Philippines
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Economical vehicle types such as hatchbacks and sedans
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Safety and security features such as airbags, anti-lock braking systems, car alarms, and anti-theft devices
5. Compare motor insurance quotes. Auto insurance comparison is a critical step in reducing your premium. It lets you know how much it will cost you to insure your vehicle from different insurance providers and allows you to find affordable car insurance rates. Ideally, get vehicle insurance quotes from as many companies as possible.
6. Get cheap car insurance from an online broker. Did you know that you can save as much as 50% when you compare motor insurance rates and apply through an independent online broker? Aside from helping you secure the lowest auto insurance possible, an online broker facilitates hassle-free claims processing. Moneymax, for example, has a dedicated claims team that can assist you when filing a claim and a team of advisors that can answer any questions you may have about car insurance.
7. Ask your agent about discounts. Ask your agent if you qualify for any discount. Some motor insurance companies offer discounts to policyholders who have not filed a claim for a certain period. You may also enjoy cheap car insurance prices if your car has plenty of safety features. If you avail of multiple insurance policies from one provider, it’s good to ask if you can get a discount on your premiums.
8. Opt out of unnecessary add-ons. Personal injury protection, legal assistance, and roadside assistance are some of the few add-ons you can get for additional protection on top of your comprehensive cover. The more add-ons you get, the more expensive your premium will be. Review your auto insurance to determine which riders or add-ons you don’t need. Unnecessary riders only add to your motor insurance cost without much use. When you renew your policy, talk to your agent about removing any add-ons you don’t need.
What is a car insurance policy?
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An auto insurance policy is the physical contract between you and your insurance provider that certifies your vehicle’s financial protection. Your car insurance policy can come in either a physical document or a digital file. If you want to cancel your policy, contact your respective insurance provider and follow the process of cancelling your coverage. Prepare to submit other requirements and pay additional fees. If you bought an auto insurance online, you can always check the e-copy of your policy from your email inbox. You can always request a physical copy from your insurance provider.
How can I check my car insurance policy?
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If you bought auto insurance online, you can always check the e-copy of your policy from your email inbox. You can also request a physical copy from your insurance provider.
How do I cancel my car insurance policy?
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To cancel your policy, contact your respective insurance provider and follow the process of canceling your coverage. Prepare to submit other requirements and pay additional fees.
How do I pay for my car insurance policy?
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If you’ve decided on a particular set of covers and add-ons on your auto insurance policy, you’ll have several payment options at your disposal:
1. Bank deposit
2. Bills payment and remittance centers
3. ATMs
4. Credit card
5. Check payment
6. Online banking channels
7. Mobile payment apps like GCash, PayPal, and PayMaya
Last updated: April 18, 2023