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Get the Best Car Insurance Coverage from Trusted Insurance Companies in the Philippines

Top Car Insurance ProvidersFeatures
AFP General Insurance Corporation
  • Free 24-hour roadside assist program
  • Accepts up to 10-year old cars
  • Free Auto Passenger Accident Insurance of PHP250,000.00
  • 96 plus accredited repair shops
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Standard Insurance
  • Free 24/7 Roadside Assistance nationwide
  • Free Auto Passenger Accident Insurance of PHP50,000.00 each for 5 persons
  • Accepts up to 12-year old cars
  • 200 plus accredited repair shops
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Western Guaranty Corporation
  • Accepts up to 10-year old cars
  • Free 24-hour roadside assist program
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QBE-Seaboard Insurance Philippines
  • Free Auto Passenger Accident Insurance of PHP50,000.00 each for 5 persons
  • Free Roadside Assistance Coverage for qualified vehicles
  • Accepts up to 10-year old cars
  • 200 plus accredited repair shops
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FPG Insurance
  • Free Auto Passenger Accident Insurance of PHP50,000.00 each for 5 persons
  • Free 24/7 Roadside Assistance
  • Accepts up to 10-year old cars
  • 242 plus accredited repair shops
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Etiqa Life and General Assurance Philippines
  • Free Towing Assistance up to PHP5,000.00
  • Free Auto Passenger Accident Insurance of PHP50,000.00 each for 5 persons
  • 147 plus accredited repair shops
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The Mercantile Insurance
  • Accepts up to 10-year old cars
  • Free Auto Passenger Accident Insurance of PHP50,000.00 each for 5 persons
  • 11 plus accredited repair shops
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Oriental Assurance Corporation
  • Free Auto Passenger Accident Insurance of PHP50,000.00 each for 5 persons
  • Free Roadside Assistance Coverage for qualified vehicles
  • Accepts up to 10-year old cars
  • 74 plus accredited repair shops
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A car insurance policy is a contract between a vehicle owner and an insurance company that shields one from financial loss in case something unfortunate happens to their car. By agreeing to pay a premium, your car will be protected under several different situations, depending on the policy both parties agreed upon.

Typically, a comprehensive car insurance compensates the policyholder for financial losses due to physical damage or bodily injury resulting from vehicle collision, theft, fire, or any damage that may arise from incidents in a vehicle.

With the growing rate of car accidents in the Philippines, it’s wise for every motorist to get the financial protection that is with them all-year-round.

Although the Land Transportation Office (LTO) requires all car owners to get Compulsory Third-Party Liability (CTPL) insurance, this type of policy doesn’t cover the vehicle and its driver for damages and injuries resulting from a car accident.

If you want unparalleled protection for your investment and insulate you from the expenses due to repairs and hospitalization, you need to get the best type of insurance on the market: comprehensive car insurance.

Every responsible driver should have car insurance. Here, we’ve broken down its elements and why it is financially wise to get one for your precious vehicle. Find out what you pay for when you get one and why you need it.

To understand the big difference between CTPL and comprehensive insurance, you need to know the most basic features of a policy first.

Here are the most common features of a car insurance:

1. Bodily injury coverage

When you hit someone while you’re driving, your bodily injury coverage will take care of all the medical expenses of the person you injured.

For accidents that involve other people, this coverage will pay for the medical and hospitalization expenses, lost wages, emotional distress damage, and other costs you might accumulate along the way. Legal fees due to charges pressed against you can also be included if the aggravated party decides to push through with legal action.

2. Property Damage coverage

In case you get in a car accident and cause damage to other people’s vehicles or property, you will be financially protected if your policy includes a Property Damage cover.

This feature of a vehicle insurance will cover for the repairs of vehicles of other people, damage to other properties, and other non-human damages. Legal fees are also covered in case the owners of the affected properties decide to file a case against you.

3. Auto Personal Accident

For people outside your vehicle involved in an accident, bodily injury coverage will be your shield from financial woes. However, what will protect you and your passengers in case of an emergency?

This is where Passenger Personal Accident comes in: You and other people inside the car will receive the proper treatment without you worrying about the mounting expenses.

4. Comprehensive coverage

It’s not always your fault. For everything else beyond your control, this is where comprehensive coverage comes in.

Under this, you are protected from the following incidents: malicious damage, vandalism, fire, theft, strikes, riots, civil commotion, explosion, and other non-natural events that can damage your vehicle. Damaging your own vehicle is also covered under this.

5. Acts of Nature coverage

In the Philippines, this feature is an optional coverage that comprehensive insurance policyholders can avail of.

Under this, damage to your vehicle caused by natural disasters such as flooding, typhoon, and earthquakes are covered. Although unlikely to happen in the Philippines, in other countries, the acts of nature that can be covered under by this are hailstorms, tornadoes, and wildfires.

6. Compulsory Third-Party Liability coverage

Mandated as a prerequisite by the LTO from vehicle owners registering or renewing their car registration, a CTPL insurance coverage provides death indemnity, bodily injury, and permanent disablement to third parties involved in an accident. However, this offers very limited coverage to car owners because of the low indemnity it provides to victims and there is no financial protection to the vehicle owner as well as passengers.

Additional features

Car insurance is more than just protecting your finances from the uncertainties of everyday life. There are other features that make car insurance worth getting.

Some of the most common perks you can avail of from insurers when you have comprehensive insurance coverage include: Choice of repair shop, ambulance and towing assistance, tire replacement, battery boosting, fuel delivery, and other extra services that will come in handy in case of a road mishap.

To understand the level of protection you can get from the different types of insurance, you need to know the parties involved in an insurance coverage:

  • First party. The insured, who is the owner of the vehicle who purchased a vehicle insurance
  • Second party. The insurer, who issued the policy to the first party in exchange of paying a premium
  • Third party. Any party involved in an accident making a claim from the first party

Once there is a binding agreement between the first and second parties in the form of an insurance policy, the latter will step in when the third party makes a claim from the former.

Without the insurance company in between, the first party would shoulder everything out of their own pocket. Keep in mind that regardless of the cause of accident, the first party is always presumed as the one at fault.

Now that the roles of each party have been established, it’s time to distinguish the difference between the two types of insurance:

  • Third-party insurance. This type of coverage will only financially insulate you from the damages you incur to other people. The most common examples of this is CTPL and the bodily injury coverage of a comprehensive car insurance.
  • Comprehensive insurance. Unlike third party insurance, this one has a wider coverage than just third-party insurance. Apart from the other parties involved, all passengers of the vehicle are also covered. The coverage also extends beyond accidentally hitting someone; a comprehensive insurance coverage protects you from a wider range of incidents. You can even file for a claim if you inadvertently damage your own car.
Feature/BenefitCTPLComprehensive Motor InsuranceComprehensive Motor Insurance with Acts of Nature cover
Own DamageNoneBased in fair market value of the vehicleBased in fair market value of the vehicle
TheftNoneBased in fair market value of the vehicleBased in fair market value of the vehicle
Third Party liability - Bodily InjuryAs mandated by lawUp to PHP1,000,000.00Up to PHP1,000,000.00
Third Party liability - Property damageNoneUp to PHP1,000,000.00Up to PHP1,000,000.00
Passenger personal accidentNoneUp to 18 seats coverageUp to 18 seats coverage
Acts of nature coverageNoneNone
Strikes, riots, Civil commotionNone
Towing service assistance
Ambulance service
Removal of the vehicle
Stay and travel due to breakdown of vehicle
Fuel delivery
Battery boosting or Jumpstarting
Locksmith service
Tire replacement
Legal assistance
24/7 customer assistance

Regardless of the insurance provider you’re going to choose, insuring your car in the Philippines will require you to do the same basic procedures such as submitting important documents and providing your vehicle details.

Keep in mind that not everyone accepts requirements through email as they still prefer the physical documents for manual filing. Ask your preferred insurance provider if they accept online submission of documents.

The cost of car insurance will depend on the fair market value of the vehicle which is the estimated amount a buyer and seller can theoretically agree to.

In the Philippines, there is the Philippine Insurers and Reinsurers Association (PIRA), which periodically provides updated FMVs to insurance companies. Car owners, however, can get a ballpark figure of their car through buy and sell websites.

Moreover, to know your premium, insurance companies multiply the Fair Market Value by certain percentages that are within the prescribed rate by the Insurance Commission (IC).

As per IC here is the list of the schedule of rates for car insurance in the country:

  • Own damage and theft: 1.25 to 3.75 percent
  • Theft only: 1.00 percent
  • Fire only: 0.50 percent
  • For vehicles used for “racing, pacemaking, reliability trial, or speed testing” additional 20 percent will be added on the rate
  • Acts of nature: 0.50 percent (minimum rate)
  • Auto personal accident: P50,000 each
  • Non-life insurance taxes:
    1. 12-percent value-added tax
    2. 12.5-percent documentary stamp tax
    3. 0.15- to 0.75-percent local government tax

Keep in mind that you can increase or decrease your VTPL premiums so you can bump up your cover limit. If you think that you should get more amount for your vehicle and you don’t want to shoulder damages from your own money, then you should talk to your insurance provider regarding additional VTPL.

For bodily injury claims

  • Prepare the following documents for submission:
    1. Original copy of the medical certificate/s of the injured person/s
    2. Original copy of medical prescription and receipts
    3. Photocopy of PSA-certified birth certificate/s and/or marriage certificates
    4. In case of death, funeral bills and receipts
    5. Certificate of employment
    6. Copy of the insurance policy
    7. In case of a third-party injury, include the following:
      • Copy of the police sketch
      • Letter of claim from third parties involved
    8. Photographs of the incident, especially the damaged portions of vehicles
  • Call your insurance company and tell them about the incident
  • Submit an incident report along with other requirements
  • Wait for the insurance representative to instruct you about your claims process

In case you cannot do this because of the injuries, an authorized representative can do the said steps on your behalf.

For property damage claims

  1. Prepare the following documents for submission:
    • Photographs of the incident, with some of them clearly showing the car’s license plate
    • Copy of the insurance policy
    • Photocopy of the driver’s license of the insured
    • The vehicle’s official receipt and certificate of registration
    • In case of third-party damage, include the following:
    • Copy of the demand letter or letter of claim from the third party
    • Copy of the third party’s insurance policy
    • Copy of the police report
    • Copy of the third party’s driver’s license
  2. Send the documents to the police and insurer immediately after the accident
  3. Request for an inspection as soon as possible (If your insurance company only allows inspection through photographs, do this immediatel)
  4. Wait for the total cost of repairs from your insurer
  5. Get the LOA and take your car to the partner service center
  6. Pay the deductible and wait for your car to be fixed

For lost or stolen vehicle

  1. Report the incident to the police and your insurer immediately
  2. Prepare the following documents for submission:
    • Full set of vehicle keys
    • Original copy of the insurance policy
    • Original copy of the certificate of non-recovery
    • Original copy of complaint sheet issued by the Traffic Management Group
    • Original copy of the National Formal Alarm Sheet issued by the Traffic Management Group
    • Letter of release
  3. Wait for the insurer to contact you regarding the status of your claim procedure
  4. Pay the deductible required by your insurer to get your reimbursement

For Acts of Nature claims

  1. Take photos of the incident, such as your car being submerged in a flood
  2. Do not start the vehicle or try to fix it by yourself
  3. When it is already safe, report the incident to your insurance company
  4. Prepare the following documents for submission:
    • Original copy of the insurance policy
    • Driver’s license
    • Incident report
    • Documentation such as photos, videos, etc.
    • Official receipt and certificate of registration
    • Original copy of barangay/municipal certification of calamity
    • Police report and/or notarized affidavit
  5. Wait for the insurance adjuster to contact you
  6. Pay the corresponding deductible
  7. Claim the letter of authority and send your car to a partner repair center (In case of total loss, you will be awarded a settlement)

In case your coverage is almost expiring, it’s time to renew your car insurance policy. Here are the steps on how to renew your car insurance:

1. Review your current insurance policy

When you read your insurance policy, it may seem intimidating to wade through all the legalese. However, make sure you cut through the fluff and focus on the following details:

  • Policy schedule
  • Limit of liability
  • Vehicle’s market value
  • Types of coverage and their limits
  • Deductible
  • Warranties
  • Indemnity clauses
  • Other fees

When you know this, it’s much easier to find a better deal from other insurers—or maybe even from your current insurance provider.

2. Shop around for potential replacements

Whether you’re happy or not with the service your current policy provides, there’s nothing wrong with looking at what else is out there.

By shopping around, you open yourself to more competitive rates and if not, at least you’ll know that you already have the best deal out there.

When you look around for a potential new insurer, ask the following questions:

  • How much is the net premium for your new insurance?
  • How long do they process the claims?
  • How many auto repair shops are partnered with them?
  • How convenient are they when it comes to filing a claim?
  • What are the added-value services you can get when you switch?

If you’re renewing your insurance with your present provider, there’s no need to submit the said requirements. Just tell them you’re willing to renew, pay your premium, and wait for your copy of your policy. It’s that easy!

3. Contact your current provider

When you already got offers from other insurers, it’s time to use this information to get maximum savings.

The first thing you have to do is to contact your current insurer and ask them if they can match the rate others offer or even beat it. Keep in mind that they will be eager to retain you as a customer, so use it to your advantage.

What is a participation fee and how much does it cost?

The participation fee consists of two fees: Deductible and Depreciation

Deductible applies every time you file for a claim. The amount depends on your Insurance provider but usually starts at P2,000 per panel.

Depreciation, on the other hand, applies if and when the vehicle is three years old above, and there are parts that need to be replaced.

For example, if your 2017 car model was involved in an accident resulting in damage and needing replacement for the side mirror, the casa or repair shop you went to will then be replacing the damaged side mirror with a newer model, which costs P10,000. For vehicles that are three to four years old, depreciation rate is at 20%. This means that 20% of the P10,000 will be shouldered by you, the Assured, on top of the Deductible.

Here's a sample computation:

Depreciation: P2,000 (P10,000 less 20%)
Deductible: P2,000 (one panel)
Total Participation Fee: P4,000

How to cancel car insurance and will I get a refund?

While you have an existing car insurance, you cancel it anytime within the coverage period. When you cancel it, you are entitled to a return of premium at a pro-rata rate unless the first and second parties agreed on a short-period rate. However, if the policyholder gets in an accident, he will not be entitled to any return of premium.

How does pro-rata rate work? Going back to Vehicle X which has a premium of P24,943.54, if he decides to cancel his coverage 89 days before his coverage lapses, he will be entitled to a return of premium of PHP 18,857.32.

However, vehicles that are still mortgaged can only cancel their insurance policy if they have secured a similar one and there will be no gap of beyond five days between the two coverages.

Can car insurance policy be transferred?

Yes. When you’re selling your vehicle and you still have an active insurance policy covering your car, you may transfer the certificate of cover from your name to the new owner of the vehicle. All you need to do is to prepare the car’s deed of sale and submit it to your insurer. Once submitted, the insurer will rename the new owner of the car as the new policyholder.

Does an older car cost more to insure?

Technically, older vehicles have a lower value due to depreciation. Long story short, depreciation is the computation of an asset’s use over time that contributes to its decrease in value. As you use your car and newer models enter the market, your car’s value declines over time.

Since a car is insured based on its current market value, owners can insure their vehicles less than the price of newer cars.

However, vintage cars whose values have been deemed more valuable are insured at a higher rate. Because of their condition, they are insurable under a more specialized type of car insurance. If you have a vintage car, ask your car insurance company if they offer a more specific type of coverage for vehicles that have appreciated over time.

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