How Much Does Car Insurance Cost in the Philippines?
Published: September 7, 2021 | Updated: September 8, 2021 | Posted by: Moneymax | Car Insurance
Buying insurance for your vehicle is a lot like buying a fire extinguisher: you pray that you’ll never need it, but you feel better knowing it’s there anyway. However, many car owners are concerned about auto insurance and whether they can afford it or not.
You might be wondering: “Why are car insurance prices in the Philippines expensive?” While you may think of it as an added expense, it’s worth knowing that the annual premiums are there for a reason. You’re buying not just an insurance policy but also peace of mind knowing your budget won’t blow up should you need to bring your car to the casa for repair.
What you can do is research on auto insurance costs, compare quotes from different providers, and find the policy that fits your needs at a rate that fits your budget.
Table of Contents
- Car Insurance Prices for Comprehensive Car Insurance
- Factors That Affect Comprehensive Car Insurance Prices in the Philippines
- What to Consider When Shopping for a Comprehensive Policy
- How to Compute and Estimate Your Premium
- Looking Beyond Car Insurance Prices in the Philippines
- Final Thoughts
Car Insurance Prices for Comprehensive Car Insurance
Price range: P8,000 to P30,000+ per year
Aside from the basic CTPL coverage, you may also opt to extend your auto insurance to cover other untoward incidents such as road accidents, car theft, or natural calamities. Extending your coverage can be helpful if you’ve invested in a luxury vehicle, or if you live in a flood-prone area.
For basic vehicles on the lower end of the price scale, the average cost of a good auto insurance policy may range from around PHP 12,000 to PHP 20,000 per year. That’s more or less PHP 1,000 per month.
To find out how much it will cost you to insure your vehicle, compare cheap comprehensive insurance quotes for free at Moneymax. Using this auto insurance online comparison tool will let you know that, for example, if you own a 2021 Toyota Vios J Base Model 1.3L Gas M/T, the cheapest policy will cost you around PHP 13,549 per year.
Factors That Affect Comprehensive Car Insurance Prices in the Philippines
The comprehensive insurance premium relies heavily on a number of criteria, mainly the market value of your vehicle. As a rule, insurance premiums for brand-new vehicles are higher than that of second-hand vehicles due to factors such as depreciation.
If you’re buying a new car, chances are that your dealer will have either in-house insurance or a list of accredited insurance providers on hand for you to consider buying from. Remember that it’s not necessary to buy from such dealers. You have the option to choose.
Motor vehicle insurance premiums may cost even higher depending on your car’s value and type, i.e. whether it’s a sedan, sports car, or an SUV. SUVs, for instance, cost more than PHP 30,000 to insure per year.
What to Consider When Shopping for a Comprehensive Policy
You can get basic CTPL from any auto insurance provider, but you can also purchase additional coverage such as voluntary third-party liability, excess bodily injury, property damage, and roadside assistance.
Types of Coverage to Consider When Buying a Policy
- 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 cover is usually separate from auto insurance in that it covers the medical expenses of the vehicle’s driver and/ or passengers in an accident.
- Loss of Use cover reimburses the additional expenses incurred by car owners whose vehicles undergo repairs after an accident.
How to Compute and Estimate Your 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 estimation of the costs of car insurance in the Philippines. For accurate car insurance prices in the Philippines, you may request for a free quote from Moneymax.
Sample Premium Computation
First, you have to compute your insured declared value, 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 4 years but not 5 years
- 40% – for cars exceeding 3 years but not 4 years
- 30% – for cars exceeding 2 years but not 3 years
- 20% – for cars exceeding 1 year but not 2 years
- 15% – for cars exceeding 6 months but not 1 year
- 5% – for cars not exceeding 6 months
So if your car, for example, is worth PHP 1.5 million and exceeds 6 months but not 1 year, your initial computation is:
PHP 1.5 million x 5% = PHP 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 %
- Deductible minimum of P2,000 or 0.5% of sum insured (SI), whichever is higher.
- Deductible discount will be computed as follows:
0.75% of SI, minimum P3,000: 6.00%
1.00% of SI minimum P4,000: 12.00%
Let’s say your damage factor is 3%, your premium should follow this computation:
PHP 225,000 x 3.00% = PHP 6,750
Got a discount from your insurer? Don’t forget to deduct the amount in your computation.
PHP 250 discount from provider = PHP 6,500
Add the cost of CTPL. CTPL for private cars is typically around PHP 650. So, PHP 6,500 + PHP 650.
Total amount of premium: PHP 7,150
If there are any additional fees, don’t forget to add that in your sample premium computation.
Table of Sample Premium for Different Car Models
Below are the different car insurance prices for top car models in the Philippines. These are based on 2021 car models and may be subject to change.
|Car Model||Car Insurance One Year Price (with Acts of Nature Coverage)||Car Insurance Monthly Price|
|Ford Fiesta||PHP 9,101||PHP 758|
|Hyundai Accent||PHP 9,854||PHP 821|
|Mitsubishi Mirage G4||PHP 11,607||PHP 967|
|Honda City||PHP 10,387||PHP 865|
|Toyota Wigo||PHP 11,426||PHP 952|
|Toyota Vios||PHP 15,919||PHP 1,326|
|Toyota Avanza||PHP 15,458||PHP 1,288|
|Honda Civic||PHP 13,608||PHP 1,134|
|Toyota Innova||PHP 18,880||PHP 1,573|
|Toyota Altis||PHP 18,701||PHP 1,558|
Note: Most car insurance providers in the Philippines require an annual payment of premiums. Hence, the car insurance one year price. The car insurance monthly price estimates were only included to give you an idea of how much you’ll need to allot for it from your monthly budget.
Where to Get a Quote for Car Insurance in the Philippines
Looking Beyond Car Insurance Prices in the Philippines
While auto insurance cost is a primary consideration for car owners with limited budgets, it shouldn’t be the only factor to look into when choosing an auto insurance policy. Several providers now offer specialized car insurance packages, and what’s best for you may vary depending on your specific needs.
For car owners in the Philippines, you can use Moneymax’s car insurance platform as an online car insurance calculator. This works by inputting your car details and the platform will give you the respective cost.
If you can afford it, get a comprehensive auto insurance plan that offers all the coverage you need. Pay close attention to the terms of the policy, as insurance providers may make some exemptions in their coverage.
To ensure you don’t overspend on your annual car insurance premium, do your research on factors that could lower or raise the price you pay in insurance. Examples include your age, location, vehicle type, participation fee, and whether the vehicle will be used for commercial purposes or for private use.
As a car owner, you must exercise caution before you invest in a car and in car insurance.. It’s not uncommon for shady fly-by-night operations to sell fake CTPLs at irresistibly low rates or at convenient locations close to major LTO hubs.
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 make a comparison here at Moneymax, you’ll find a variety of options from the most trusted providers in the Philippines. Start your search for the right car insurance here!
Source:  Is Buying a Car an Investment? (Caldwell, 2019)
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