Guide To Getting Car Insurance In The Philippines
Liability insurance is a requirement for all vehicles by the Land Transportation Office (LTO). The LTO mandates that you get a compulsory third party liability (CTPL) insurance right after purchase and before registration of your car.
So much do you know about getting your car insured? Are you familiar with the coverages, pricing, and other things that make up a comprehensive auto insurance?
In this 2018 guide to getting car insurance, we’re going to help you learn about the most common types, how premiums are calculated, and types of coverage. You’ll also find some tips on how to possibly cut the cost of your premium.
Common types of car i nsurance in the Philippines and their coverage
Compulsory Third-Party Liability (CTPL)
This type of car insurance is mandatory . Any type of motor vehicle, old or new, must comply with Section 389, Chapter VI of the Insurance Code of the Philippines in getting CTPL insurance before registering their vehicle with the LTO.
As the name suggests, CTPL insurance covers third-party person/s in the event of an accident . These are persons not related to the owner of the car up to the second degree of consanguinity during the time of the accident.
Examples of third-parties are passengers of another car that was hit, pedestrians that were affected by the accident, or passengers that are not related to but are riding with the insured during the accident.
It is important to note that CTPL coverage is only limited to third parties. It cannot be topped up to increase coverage, and it does not cover the vehicle owner. Since March 24, 2024, the limit and the death benefit are ₱200,000, injuries are paid from a fixed schedule below that, the no-fault benefit is ₱30,000, and a private car costs ₱560 for one year, taxes included. Paying a higher premium does not raise that compulsory limit, and the policy does not cover the vehicle owner. Anything CTPL does not pay is yours unless a comprehensive policy’s voluntary third-party liability picks it up. A draft ceiling of ₱400,000 has not replaced the 2024 rule. CTPL insurance in 2026 has the current schedule.
Comprehensive Car Insurance
This covers a bigger, more specific list of needs and coverage. Though it is optional , vehicle owners know better than to skimp on getting a comprehensive car insurance. Different providers offer different levels of coverage so you should consider that when making your decision.
Unlike CTPL, this covers the insured/car owner in case of accident, loss, and other damages brought on third-parties, for himself, and the passengers involved .
Reimbursements are provided for liabilities to own vehicle and/or third-party’s damaged vehicle, as well as damages through Acts of Nature such as typhoons, flood, earthquakes, and other natural calamities.
How much does car insurance cost in the Philippines?
The cost of the comprehensive car insurance premium depends on the value of the car.
To calculate or get the best estimate of your car insurance premium, you can use a car insurance calculator and enter your car/vehicle’s make, model, and model year . E.g. Toyota Innova, 2018.
You will then be able to compare insurance premiums and their added services and make an informed choice from the options presented to you.
(Read : Finding The Best Car Insurance In The Philippines: What Do You Need To Look For?)
The annual premium is usually paid within a three-month period with a post-dated check (PDC). If you’re paying with cash, at least fifty percent (50%) of the premium needs to be made for the first payment, to be completed within the next two (2) months. Failure to pay within the agreed timeframe will result in the cancellation of the insurance.
Four factors to consider in choosing car insurance
- To get the right type of vehicle insurance, the vehicle owner should look for a reputable insurance provider .
- Read feedback and reviews or ask individuals close to you if they can recommend a reputable provider.
- Know the add-ons offered by each insurance provider and see if the policy truly gives value for money.
- Know the claims processing procedure of the provider of your choice . Again, check reviews and get feedback on whether an insurance provider offers easy and accommodating service in the event of an emergency.
How to cut the cost of coverage
Many car owners don’t realize that they can ask for lower Bodily Injury and Property Damage coverage, or BIPD . You may also ask to remove the Acts of Nature coverage if the car or vehicle’s mortgage has been fully paid. If the car or vehicle loan is not yet fully paid, then the Acts of Nature coverage cannot be waived.
(Read : Save On Car Insurance By Asking These Four Questions)
It is, however, highly advisable to get the most coverage in preparation for the many types of risks associated with owning a vehicle.
Now that you have all the information needed in getting a car insurance, the next step is to learn about vehicle insurance claims processing, and the documents needed, through our step-by-step guide.