Car Insurance in the Philippines​: What You Need to Know! (2024)

There are multiple reasons why insurance is important, as it serves as a financial safety net should something unfortunate happen to you on the road. Car insurance in the Philippines, in particular, ensures that you are protected when accidents occur. It also comes in different types from various providers for you to choose from.

While having car insurance is essential (considering the heavy traffic in the Philippines), it’s one of those things you hope you never have to use. To help you navigate the complexities of car insurance, this article will guide you through everything you need to know, from understanding the different types of coverage to tips for selecting the right policy.

So hang tight and be ready to equip yourself with the knowledge necessary for making informed decisions about your car insurance!

Table of contents

  • How Does Car Insurance Work
  • Is It Worth It To Have Car Insurance?
  • What Damages Are Covered in Car Insurance?
  • Compulsory Third Party Liability Car Insurance (CPTL)
  • Comprehensive Car Insurance
  • How Much is Car Insurance in the Philippines?
  • Types of Car Insurance
  • Common Mistakes When Getting Car Insurance
  • List of Car Insurance Companies in the Philippines
  • What You Need to Get a Car Insurance
  • How to File a Car Insurance Claim
  • How to Renew Your Car Insurance
  • Frequently Asked Questions (FAQs)

How Does Car Insurance Work

Before we go into detail about car insurance in the Philippines, it’s best to know the basics to it first.


In the event of a vehicular accident, car insurance serves as the driver’s financial protection. This comes in various forms and can be used to protect liability, property, and medical costs.

Every time you register or renew your car’s registration in the country, you’re required to have a specific type of car insurance in the Philippines, which is the Compulsory Third Party Liability (CPTL). We’ll talk more about that in detail later.

The Land Transportation Office (LTO) requires CPTL insurance as a means of added protection for the general public. This means that everyone has a financial fallback in the event of an accident. Moreover, the LTO isn’t the only government body that requires this; the Department of Transportation (DOTr) also mandates it.

Is It Worth It To Have Car Insurance?

Aside from being a requirement to drive a vehicle legally, having car insurance offers multiple benefits. As previously mentioned, different insurance plans or packages cover different matters. Moreover, car owners can also opt for a comprehensive insurance that covers a vast list of incidents.


While paying for other car insurance plans may seem like an added cost, it pays when you’re involved in an accident. While you may not be involved in one due to your safe driving, you may feel that your insurance might seem to go to waste. However, keep in mind that this can also help you when you’re in one that isn’t your fault.

To add to that, having car insurance helps you maintain financial security in unexpected situations. Accidents can cost a lot of money, whether it’s your fault or not. Insurance companies also help speed up the process after an accident so you can recover not just financially but also mentally and physically.

What Damages Are Covered in Car Insurance?

Moving on, it’s important to take note that car insurance coverage varies depending on the owner’s insurance plan. Here’s an overview of the three major types.


  1. Liability coverage: This involves the financial assistance of injuries or damages to third parties or their property.
  2. Property coverage: This vehicular insurance covers the damage caused by the driver to the other party’s property.
  3. Medical coverage: This specific insurance type covers the medical expenses as a result of the accident.

The overall coverage of these insurance plans also varies on the car owner’s premiums. The higher the premium, the greater the coverage.

In addition, policies may also differ based on the providers. However, common damages covered by insurance policies in the country include:

  1. Acts of nature: Damages caused by natural calamities like floods, earthquakes, etc.
  2. Property damage This involves damage inflicted on non-living things like buildings and other vehicles.
  3. Theft: Includes coverage when your vehicle is stolen or damaged by malicious acts like graffiti, slashed tires, broken windows, etc.
  4. Roadside assistance: If your car breaks down while on the road, this insurance policy or inclusion offers assistance such as towing, tire replacement or repairs, battery replacement, and more.
  5. Bodily injury: When you’re found responsible for the accident, this covers the other party’s medical bills due to the injuries from the event.
  6. Own damage: Car owners can file for a claim when they pay for this insurance policy that guarantees financial assistance for their vehicle, regardless who is at fault.
  7. Fire: In the event that your car catches on fire, your insurance provider will be helping you with the expenses.

Now that you have a general idea of car insurance in the Philippines, it’s time to get into the specifics, beginning with the Compulsory Third Party Liability Car Insurance (CPTL).

Compulsory Third Party Liability Car Insurance (CPTL)

CPTL car insurance is a requirement to renew your vehicle or when you register for a new one. The DOTr and LTO mandate this as a safety net for accidents, especially when there’s a casualty. This ensures that both parties are financially protected during these times. When owning a vehicle, this form of insurance is the most basic and least expensive insurance coverage.

As stated in Chapter 6 of Republic Act 10607 Sec. 387, “It shall be unlawful for any land transportation operator or owner of a motor vehicle to operate the same in the public highways unless there is in force in relation thereto a policy of insurance or guaranty in cash or surety bond issued in accordance with the provisions of this chapter to indemnify the death, bodily injury, and/or damage to property of a third-party or passenger, as the case may be, arising from the use thereof.”

How to Get CPTL Insurance

To secure a CPTL, you can follow these steps:

  1. Prepare CTPL insurance required documents
    1. Original Receipt and Certificate of Registration
    2. Driver’s license
    3. Another valid government-issued ID
    4. Photocopies of each listed document
  2. Choose any LTO-accredited CPTL insurance providers to purchase a plan from
  3. Once done buying, owners will receive the policy with its terms and conditions and a Certificate of Cover (COC). The COC usually includes the following details:
    1. Name of the assured
    2. Vehicle details
      1. Serial number
      2. Chassis number
      3. Plate number
      4. Color
    3. Insurer’s limit of liability
      1. Schedule of benefits
        1. Death benefits
        2. Funeral expenses
        3. Permanent disablement
        4. Dismemberment
      2. Limits for medical and hospital reimbursement
  4. Create duplicate copies of everything and bring them to your LTO office upon registration as proof of insurance coverage

Aside from the CPTL, another insurance might be up for your consideration as it covers a vast list of incidents.

Also Read: GUIDE: ONLINE LTO Car Registration Renewal

Comprehensive Car Insurance

This form of insurance policy covers more than just one thing and typically involves coverage for more than just collision accidents. Aside from collision and liability coverage, this may also cover the following damages:

  • Animal contact
  • Natural disasters
  • Fires
  • Vandalism
  • Vehicle theft
  • Broken windows or windshield
  • Roadside assistance
  • Ambulance service
  • Fuel delivery
  • Tire replacement
  • Battery jumpstart
  • Legal assistance

Several advantages make comprehensive car insurance in the Philippines the ideal option. While it costs way more than CPTL, the benefits are worth the price. In the event that your car breaks down in the middle of the road, your insurance covers roadside assistance. They will even help you tow the car and bring it to a trusted mechanic.

However, comprehensive plans typically require policyholders to pay an annual premium. The price of this premium also depends on the car, so the more expensive your car, the more costly your premium will be.

Furthermore, not all comprehensive plans are the same. Different providers offer different perks, so ensure that you know the coverage and limitations of the covered plans before investing in one.

How to Get Comprehensive Insurance

To get this form of car insurance in the Philippines, owners can contact insurance agents/companies or visit their official websites. By canvassing different companies and plans, you get to have an idea about their offers and which one fits your needs best.

A general overview of the requirements they may ask from you include the following:

  • Original vehicle receipt (OR)
  • Certificate of Registration (CR)
  • Driver’s License
  • One other valid government ID

However, several companies have a limit for comprehensive car insurance in the Philippines. This means that they will only insure cars manufactured until a specific year. These companies typically turn down cars older than 10 years old.

At this point, we’ve discussed the basics, CPTL and comprehensive car insurances, but how much does a car insurance actually cost?

How Much is Car Insurance in the Philippines?

Car insurance in the Philippines prices vary and have no set value because different factors contribute to your premium. These include your vehicle’s make and model, year, condition, safety features, accessories, and inclusions. Even your credit history can play a role in your vehicle’s premiums.

Additionally, different insurance companies also offer different price points. Others cost more since they offer more coverage should an accident occur. Insurance companies have agents who would be more than willing to assist you with a quote for your vehicle and your desired coverage. Moreover, they will also help you figure out a plan to fit your budget.

Aside from the companies we’ve listed further in the article, here are a few ones that offer online quotes for your car insurance in the Philippines. All you have to do is fill out the necessary fields:

  1. AXA Philippines
  2. FPG Insurance
  3. Malayan Insurance
  4. BPI MS Insurance

The required CPTL insurance is much cheaper than added policies or plans. Basic and affordable cars usually pay less than ₱10,000 for their annual premium. To get a better grasp of how much is car insurance in the Philippines, feel free to visit insurance websites to get a quote for your vehicle.

Types of Car Insurance

Here are five common types of car insurance in the Philippines.

  1. Collision insurance is useful when your vehicle collides with another. Some companies offer premiums that offer repair assistance costs. With the right premium, they might even replace your vehicle with a brand-new one. However, this can be costly.
  2. Uninsured motorist insurance provides car owners with an added safety net when they are involved in an accident with an uninsured vehicle. This is also a handy plan if the other vehicle only has the CPTL policy and you need more financial assistance to cover the damage.
  3. Gap insurance is an ideal option for those who are still in the process of financing their vehicle. This policy helps cover accident expenses and ensures that you can still make your car payments on time, even after you were involved in an accident.
  4. Medical payments coverage is an additional perk of your insurance policy. This ensures that you and your passengers’ medical bills are also covered. A key highlight of this addition is the costs are paid for by the insurance company, regardless of who caused the accident.
  5. Personal injury protection insurance ensures that the driver is also insured, not just the vehicle. Some policies also cover income loss in the event of a vehicular accident and may cover up to 80% of the medical expenses.

If you’re planning to get your car insurance, it’s best to be familiar with common mistakes to avoid upon getting one, companies that offer insurances, and the requirements you need to prepare.

Common Mistakes When Getting Car Insurance

With the vast options of car insurance policies available, it can be overwhelming to choose one that will cover all your needs. So, here are a few common mistakes to avoid when choosing your policy.

  • Not Comparing Quotes: Not comparing enough insurance companies can limit your options. Thoroughly sifting through all companies accessible to you is important to ensure you have the best policy for you. Also, not paying your deductibles on time may result in a minimized premium. Remember, the point of insurance is to have a financial safety net in accidents. So, ensuring that all your payments are made on time is essential.
  • Ignoring Coverage Options: Aside from not comparing enough companies, not comparing enough policies can also result in lapses. Companies often provide different policies for vehicular accidents, so going through each one is a must to determine which one fits you best.
  • Misunderstanding Deductibles: Another mistake you can possibly make when getting car insurance is ignoring your deductibles. These deductibles are in place so you can have the most financial assistance in the event of an accident. So, missing several payments may take a hit on your total receivable amount when involved in an accident.
  • Failing to Update Your Policy: Time is highly sensitive when it comes to insurance. So, renewing your policy on time is a must. Aside from the mandatory CPTL, renewing your other vehicular insurance ensures that you are insured at all times. Since accidents are unpredictable, it’s critical to always make sure that it isn’t expired when you’re on the road.
  • Choosing Price Over Value: While the cheapest policies might look the most attractive, they also have their downsides. Apart from being affordable, these plans only have limited coverage. This could become an issue when involved in accidents that are more than fender benders.

List of Car Insurance Companies in the Philippines

Choosing a completely licensed insurance company is essential to insure your vehicle. Working with these companies ensures that there are no bumps along the way, especially when you’re involved in an accident. According to LTO, here are the licensed insurance companies in the Philippines:

Also Read: LIST: Best Car insurance in the Philippines 2024

What You Need to Get a Car Insurance

When applying for car insurance, you need to secure the necessary documents before a firm will provide you with services. So, here are the requirements you’ll need:

  1. Original Receipt (OR)
  2. Certificate of Registration (CR)
  3. Driver’s License
  4. Government-issued ID

Note that some insurance companies might require more than the list specified above. However, this is just a rough idea of the staple requirements to apply for car insurance in the country.

How to File a Car Insurance Claim

Filing a vehicle insurance claim in the Philippines may vary from one car insurance company to another. However, the general process should look something like this after you’re involved in a vehicular accident:

  1. Take photos of the accident, be as detailed as you can be. These photos may significantly contribute to your case.
  2. File a police report, this is also a requirement for your insurance claim.
  3. Fill out your insurance company’s accomplished claim form. Some firms offer these online, while others may require you to call their agents.
  4. Get a car repair estimate from your mechanic or the insurance company’s recommended mechanic.
  5. Prepare photocopies of your driver’s license with the original receipt and your vehicle registration certificate with the MVRR number.

Moreover, your insurance company may ask for requirements to get a car insurance claim, such as copies of the following:

  1. Valid I.D.
  2. Birth certificate
  3. Marriage certificate (if applicable)
  4. Certificate of employment
  5. Original copy of the medical certificate and receipts with prescription
  6. A certified true copy of the death certificate
  7. A certified true copy of funeral bills or receipts
  8. Income tax return
  9. Police sketch plan of accident scene

How to Renew Your Car Insurance

Since it’s important to always renew your car insurance on time, there are different ways to renew this. However, take note that the process also depends on your insurance provider. Some companies allow online renewals, while others require face-to-face processes.

Moreover, it’s ideal to renew your insurance a month before it expires. Driving with expired coverage is illegal and can lead to serious consequences.

Car owners can also change insurance policies and companies before their plan expires. However, thoroughly comparing these plans are ideal to find which one fits your needs and financial capabilities best.

Frequently Asked Questions (FAQs)

If you’re a new car owner or looking to switch your car insurance in the Philippines, here are a few questions you might have.

How long does a car insurance claim take to settle?

In the Philippines, settling a car insurance claim typically takes two weeks to a few months, depending on factors such as the complexity of the case, completeness of submitted documents, and cooperation from involved parties.

For straightforward claims with complete documentation, insurers may process and settle within 10 to 15 working days. However, disputes or third-party involvement can extend the timeline.

Can you insure old second-hand cars?

Yes, you can insure old second-hand cars in the Philippines, but it depends on the insurance company’s policies. Some insurers may impose age limits (e.g., 10-15 years) or require additional inspections before providing coverage.

Comprehensive insurance may be limited, but basic Compulsory Third-Party Liability (CTPL) is still available for older vehicles.

Does car insurance cover scratches and dents?

Yes, car insurance can cover scratches and dents, but it depends on the type of coverage. Comprehensive insurance usually covers damage from accidents, vandalism, or natural events.
However, coverage for minor scratches and dents may be subject to deductibles, and claims might not be worth filing unless the repair cost exceeds the deductible. Third-party liability insurance does not cover damage to your own car. Always check your policy details.

Can I claim car insurance if I’m at fault?

Yes, you can claim car insurance even if you’re at fault, but it depends on your coverage. Comprehensive insurance typically covers damages to your vehicle regardless of fault.

However, third-party liability insurance only covers damage or injury caused to others. Be aware that filing a claim may affect your no-claim bonus or result in higher premiums. Always review your policy to understand the specifics.

Can married couples have separate car insurance?

Yes, married couples can have separate car insurance policies. This may happen if they own vehicles individually or prefer different coverage options. However, listing each other as additional drivers on both policies can prevent coverage issues. Some insurers also offer discounts for bundling policies under one account, so it’s worth comparing options.

Does comprehensive car insurance include CTPL?

No, comprehensive car insurance in the Philippines does not include Compulsory Third-Party Liability (CTPL). CTPL, which covers injuries or death of third parties, is mandatory and must be purchased separately.

Comprehensive insurance, on the other hand, covers damage to your own vehicle and other risks like theft or natural disasters. Both types of insurance serve different purposes and are often bought together for full protection.

What is the best car insurance in the Philippines?

The best car insurance in the Philippines depends on your needs. Top providers include Malayan Insurance, Pioneer Insurance, and FPG Insurance. These companies offer comprehensive coverage with benefits like 24/7 roadside assistance and flexible payment terms.

Consider factors like premiums, coverage limits, and customer service when choosing. Always compare policies to find the best fit for your budget and requirements.

What is the point of car insurance?

The point of car insurance is to provide financial protection in case of accidents, theft, or damage to your vehicle. It covers repair costs, medical expenses, and liability for injuries or damages to others.
Car insurance ensures you comply with legal requirements, such as CTP in the Philippines, and helps reduce out-of-pocket expenses during unexpected events.

Keep Reading: Finding the Best Car Insurance in the Philippines

Car Insurance in the Philippines​: What You Need to Know! (2024)
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