How Much Does Car Insurance Cost in the Philippines in 2024?

Venus Zoleta

Venus Zoleta

Last updated May 17, 2024

Buying insurance for your vehicle is a lot like buying a fire extinguisher: you pray you’ll never need it, but you feel better knowing it’s there anyway.

However, many car owners are concerned about the cost of auto insurance. They wonder, "Why is car insurance price in the Philippines so high?"

While you may think of it as an added expense, annual premiums are there for a reason. You're buying not just an insurance policy but also peace of mind—you know your budget won't blow up should you need to have your vehicle repaired.

If you want to know the price of car insurance in the Philippines, you’re reading the right article. Whether you’re getting a new car or switching to a new insurer, you’ll find something helpful here.

What are the 2 Types of Car Insurance in the Philippines?

car insurance price in the philippines - types of car insurance

Generally, there are two types of car insurance in the Philippines: Compulsory Third Party Liability (CTPL) insurance and comprehensive car insurance. While they offer different levels of protection, both are important for car owners. 

Here are the differences between the two: 

📌 CTPL Insurance

The CTPL (also called TPL) is a type of insurance coverage that will financially protect you in case you incur damage to a third party. In this context, a third party is someone who isn’t a passenger in your car, such as a pedestrian. This policy doesn’t cover you and your passengers. 

The government requires all drivers to get a CTPL policy before they hit the road. This is stipulated in Section 389, Chapter VI of the Insurance Code of the Philippines.[1]

It’s a common misconception among new car owners that CTPL insurance is all they need. But keep in mind that you cannot substitute it for an extensive car insurance policy that can protect you and your passengers. 

Note: As per the Insurance Code of the Philippines, a third party also refers to passengers who aren’t the car owner’s employees or family members within the second degree of consanguinity or affinity. This simply means they’re also covered by CTPL insurance. 

📌 Comprehensive Car Insurance 

A comprehensive car insurance policy offers wider coverage than CTPL. It covers not just third parties but also you and your passengers. This policy will protect you from a wide variety of incidents—from accidents and natural disasters to theft and even riots.  

A comprehensive car insurance policy can be customized depending on your budget and needs. Increased protection means more expensive premiums, while minimal coverage may mean cheaper premiums.

CTPL Car Insurance Price in the Philippines  

Price range: ₱300 to ₱1,500 per year

A CTPL policy isn’t that pricey. It ranges from around ₱650 or lower to ₱1,500 per year, depending on the type of your vehicle. Its affordable price tag can be attributed to its limited protection. 

👉 Best CTPL Insurance in the Philippines

How much does car insurance cost? For CPTL, here are the prices from some of the country’s top insurers. 

TPL Provider Premium Starts at Vehicles Covered
OONA Insurance (formerly MAPFRE)
Oona logo_horizontal with insurance_purple
tpl insurance - oona
₱290/year Motorcycles, private cars and SUVs, light/medium/heavy trucks, taxis, PUJs, mini-buses, PUBs, and tourist buses
Prudential Guarantee
tpl insurance - prudential
Most likely around ₱600/year Private cars
Mercantile Insurance
mercantile insurance logo
tpl insurance - mercantile
Most likely around ₱600/year Private automobiles, motorhomes, motorcycles, scooters, mobiles, buses, road building equipment, and trailers
SGI Philippines
car insurance companies philippines - sgi
tpl insurance - sgi philippines
Most likely around ₱600/year Private cars, motorcycles, and commercial vehicles

Standard Insurance

car insurance companies philippines - standard insurance

tpl insurance - standard insurance

  • ₱770.40 (three-year coverage for brand-new vehicles)
  • ₱300.40 (one-year coverage for renewals)
Private cars, (including jeeps and AUVs), motorcycles, tricycles, trailers, light/medium trucks, and heavy trucks
tpl insurance - stronghold
Most likely around ₱600/year Private cars, commercial vehicles, and motorcycles


Read more: Find the Coverage You Need: Top Car Insurance Companies

Comprehensive Car Insurance Price in the Philippines

Price range: ₱10,000 to ₱100,000+ per year

car insurance price in the philippines - comprehensive insurance

Compared to CTPL coverage, comprehensive car insurance is more expensive. But such a car insurance cost is a small price to pay, considering its extensive coverage. Certain car insurance add-ons will come in handy, especially if you live in an area where the risk of car damage is high.

How much is comprehensive car insurance in the Philippines? If you have a basic, affordable car, you may get annual car insurance for less than ₱10,000. 

For mid-tier vehicles, the average car insurance price in the Philippines may range from around ₱10,000 to ₱20,000 per year. 

On the other hand, those who own luxury vehicles like Mercedes-Benz, Audi, or Land Rover, may need to pay more than ₱100,000 per year. 

To find out how much it will cost you to insure your vehicle, compare affordable car insurance quotes for free here at Moneymax. 

💸 Factors That Affect Comprehensive Car Insurance Prices in the Philippines

Comprehensive car insurance rates rely heavily on several criteria, such as the following: 

  • Car type and model - Expensive vehicles[2] tend to fetch a higher insurance cost. The same applies to the car type. For instance, sports cars come with more expensive insurance since they’re riskier and more expensive to repair. 
  • Vehicle condition - Brand-new units are more expensive to insure due to certain factors, such as depreciation. 
  • Safety features - Cars with a lot of safety features may be a tad expensive. However, they’re cheaper to insure. 
  • Accessories - If you've customized your vehicle, you may need to apply for special coverage. This is because your unit doesn’t possess its original specifications anymore.
  • Inclusions - Basic coverage isn’t pricey. However, it doesn’t always provide reliable protection. The more inclusions you have, the more expensive your insurance will be. 
  • Credit history - Your other financial obligations, such as loans and credit dues, may have an effect on your car insurance rates. If you have a good record, you may enjoy favorable insurance premiums.
  • Age - Younger drivers may find themselves paying more expensive insurance costs. This is because they’re considered less experienced, which may account for higher road risks. 
  • Profession - Those with high-risk jobs may be required to cover higher premiums. These include the likes of truck drivers.

Read more: How to Get Car Insurance for Second-Hand Vehicles in the Philippines

Types of Coverage to Consider When Shopping for a Comprehensive Policy

You can get basic CTPL from any auto insurance provider. But to get more protection, get comprehensive insurance. These are the typical inclusions in such 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.
  • Value-added services may include casa repair and technical assistance
  • Roadside assistance provides clients with towing in case the car breaks down. It may also include on-site repairs and hotel accommodation in case your car can’t be repaired right away or within the day.

How to Compute and Estimate Your Insurance Premium

car insurance price in the philippines - how to compute 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 estimate of a car insurance cost in the Philippines. For a more accurate number, use your preferred insurer’s car insurance calculator in the Philippines or request a free quote from Moneymax.

🔢 Sample Premium Computation

First, you have to compute your insured declared value (IDV), 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 four years but not five years
  • 40% - for cars exceeding three years but not four years
  • 30% - for cars exceeding two years but not three years
  • 20% - for cars exceeding one year but not two years
  • 15% - for cars exceeding six months but not one year
  • 5% - for cars not exceeding six months

So for example, if your car is worth ₱1.5 million and exceeds six months but not one year, your initial computation is:

₱1.5 million x 15% = ₱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 %
  • Minimum deductible of ₱2,000 or 0.5% of the sum insured (SI), whichever is higher
  • Deductible discount will be computed as follows:
    • 0.75% of SI, minimum ₱3,000: 6.00%
    • 1.00% of SI minimum ₱4,000: 12.00%

Let's say your damage factor is 3%, your premium should follow this computation:

₱225,000 x 3.00% = ₱6,750

Got a discount from your insurer? Don't forget to deduct the amount from your computation.

₱250 discount from provider = ₱6,500

Add the cost of CTPL. CTPL for private cars is typically around ₱650. So, ₱6,500 + ₱650.

Total amount of premium: ₱7,150

If there are any additional fees, don't forget to add them to your sample premium computation.

Read more: What is Car Insurance Participation Fee and How Much Does It Cost?

🚗 Sample Premium for Different Car Models

Below are the different car insurance prices for top car models in the Philippines. These are based on 2023 car models and may be subject to change.

Car Model Car Variant Car Insurance Price for 1 Year (with Acts of Nature Coverage) Estimated Monthly Car Insurance Price
Mitsubishi Mirage G4 GX 1.2L Gas M/T Sedan ₱7,820 ₱651.67
Mitsubishi Mirage GLX 1.2L Gas M/T ₱10,527 ₱877.25
Toyota Wigo E 1.0L Gas M/T ₱11,453 ₱954.42
Honda City E 1.5L Gas M/T ₱13,885 ₱1,157
Toyota Vios Base Model 1.3L Gas M/T ₱14,184 ₱1,182
Suzuki Swift GL 1.2L A/T ₱14,495 ₱1,208
Honda Brio S 1.2L Gas M/T  ₱14,862 ₱1,239
Toyota Avanza E 1.3L Gas M/T ₱15,520 ₱1,293.33
Kia Soluto LX 1.4L Gas/MT ₱15,645 ₱1,304
Kia Stonic LX 1.4L Gas M/T ₱16,133 ₱1,344.42
Suzuki Ertiga Hybrid GA 1.5L Gas M/T ₱18,136 ₱1,511.33
Honda BR-V Prestige 1.5L Gas A/T ₱18,372 ₱1,531
Toyota Innova E 2.0L Gas M/T ₱19,105 ₱1,592
Mitsubishi Strada GL 2.4L Diesel M/T ₱19,752 ₱1,646
Toyota Veloz E 1.5L Gas A/T ₱20,426 ₱1,702.17
Honda Civic E 1.8L Gas A/T ₱21,231 ₱1,769.25
Toyota Corolla Altis E 1.6L Gas A/T ₱21,907 ₱1,825.58
Kia Seltos EX 2.0L Gas A/T ₱22,446 ₱1,870.50
Mitsubishi Montero Sport GLS 2.4L Diesel M/T ₱25,257 ₱2,104.75
Ford Territory EcoBoost Titanium 1.5L Gas A/T ₱24,634 ₱2,052.83
Toyota Fortuner G 2.4L Diesel A/T RWD SUV ₱32,883 ₱2,740.25


Note: Most car insurance providers in the Philippines require an annual payment of premiums. Hence, the car insurance prices for one year. The car insurance monthly price estimates are included only to give you an idea of how much you'll need to allot for it from your monthly budget.

Is Car Insurance Worth It? 

Now that you have an idea of comprehensive car insurance prices in the Philippines, let's answer the question: is it worth it? 

Short answer: Yes! No matter how protective you are of your car and how careful you are while driving, you never know when an accident might happen. 

Here are some reasons why car insurance is worth it:  

  • You won’t need to tap into your savings - If you get into an accident due to your own fault, you may find yourself breaking your piggy bank to pay for repairs. But if you have car insurance, you need to just contact the insurer to file a claim. 
  • You'll save time - Dealing with a car accident can be time-consuming. If you don’t want to deal with towing, repairs, and replacement, your insurer can take care of those matters. 
  • It’ll complement your existing insurance - Got personal accident insurance or life insurance with accident cover? Good! Still, a car insurance policy with accident benefits can supplement your existing policies. If your car insurance policy is comprehensive enough, you might not even need to use your life or personal accident car insurance to deal with medical expenses. 
  • You get extra benefits - Car insurance companies offer value-added services. For instance, roadside assistance includes towing, tire replacement, and fuel delivery. Also, in cases where your car can’t be repaired immediately, the insurer may pay for your hotel accommodation and travel costs. 
  • You may get free legal services - Some insurers offer legal assistance that you can use to navigate trickier incidents.

Best Car Insurance in the Philippines in 2024

Are you ready to choose an insurer? Here are your top options:

Car Insurance Company Maximum Total Sum Insured CTPL Coverage Own Damage & Theft Coverage Acts of Nature Coverage Death / Disablement Coverage
FPG Insurance
Get free car insurance quote
₱4 million
Malayan Insurance
Get free car insurance quote
₱7.5 million
The Mercantile Insurance Corporation
mercantile insurance logo
Get free car insurance quote
₱5 million
OONA Insurance (formerly MAPFRE)
Oona logo_horizontal with insurance_purple
Get free car insurance quote
₱5 million
PGA Insurance
Get free car insurance quote
₱3 million
SGI Philippines
Get free car insurance quote
₱5 million
Standard Insurance
Get free car insurance quote
₱5 million
Stronghold Insurance
Get free car insurance quote
₱3 million

How to Reduce the Price of Car Insurance in the Philippines

Car insurance is an additional yet necessary expense. But if you want to reduce your premium and keep yourself from overspending, consider these strategies: 

✔️ Compare Different Providers 

Don’t just go for the first insurer that comes your way. Talk to at least three companies and check out their car insurance rates and inclusions. Using these details will point you to the provider that offers the best value for money. 

If you aren’t still sure about your choice, ask around. Your close friend may refer you to a reputable insurer. You may also read reviews on an insurer’s claims process. 

When choosing an insurer, make sure you can actually afford their policy. After all, insurance is a financial obligation. 

✔️ Check the Factors That Affect Car Insurance Rates

Certain factors can drive up car insurance rates. These include your age, location, vehicle type, participation fee, and whether the vehicle will be used for commercial or private use. Ask your agent about these details to determine the possible cost of your policy. 

✔️ Take Advantage of Discounts and Special Offers

From time to time, car insurance companies offer discounts that can reduce your premium. They usually offer such promos to clients with a good driving history. 

Are you loyal to your insurer? You may want to leverage your relationship with them to get a good deal. It won’t hurt to ask your agent about it.[2]

✔️ Increase Your Deductible

A deductible is an amount your insurer will not cover in case of an accident or event that will invoke your insurance. It’s recommended to go for a smaller deductible so that you won’t have to shell out a large amount of money when an accident strikes. The downside, however, is that you’ll need to pay a higher premium. 

Following that logic, you can reduce your car insurance rates by choosing a higher deductible. The trade-off, however, involves covering a higher deductible when you file a claim. 

✔️ Buy a More Affordable Car 

Looking at the table of sample insurance premiums above, you’ll notice that the more expensive the car is, the pricier its insurance gets. If you’re buying a new car and you’re thinking of future expenses, consider getting a more affordable unit. While you’re at it, choose an auto with a good safety record, as it may also help in reducing your insurance premium.

✔️ Check Your Coverage

The number of inclusions can affect car insurance rates. The good news is that you can opt out of certain inclusions, thus lowering your premium. 

First, assess your risks. For instance, you may drop theft and riot coverage if you live in a peaceful community. Got an old car? Drop auxiliary inclusions and focus on essentials, such as personal accident, collision, and the like.

But just a word of caution: think twice about settling for the cheapest premium. While affordable, you may not get the protection that you actually need. 

✔️ Go for Bundle Discounts 

Some insurance companies offer discounts if you buy two or more policies. Take advantage of this feature to save money in the long run. Ask your agent if you can get a discount if you purchase home, life, and car insurance policies in one go. 

✔️ Be a Better Driver

Being a careful and considerate driver can earn you low car insurance rates. Some insurers offer discounts to policy owners who don’t file claims for the entire year. This is because they see them as low-risk drivers. 

Got Your Car Insurance? Here’s What to Do Next 

car insurance in the philippines price - what to do next

After checking the car insurance rates and talking to different agents, you’ve finally found a suitable policy. Congratulations! Here are some of the things you should do next:

✔️ Keep Your Policy Somewhere Safe 

The insurer will provide you with either a physical or digital copy of your policy (or both). Keep your policy somewhere safe yet accessible, so you can review it from time to time. You may also choose to save a digital copy[3] in the cloud or on your mobile phone just in case you need it right away.  

✔️ Know Who to Contact

Nobody wants to have to use their car insurance policy. Still, it pays to have the phone number or email address of your insurer’s client services department or claims team on hand. Your insurer’s contact details also come in handy in case you have questions about your policy.

This is particularly important during emergencies, such as car breakdowns. You can quickly avail of roadside assistance, such as towing, overnight accommodation, or relay of messages. 

If you don’t know these pertinent details, just visit your insurer’s website. You may also ask your agent about them. 

✔️ Don’t Miss Your Payments 

Paying your car insurance is an obligation that you need to religiously fulfill. Missing payments comes with consequences.

For one, your insurer will cancel your policy. Subsequently, you’ll lose your coverage and you won’t be protected in case an incident happens. 

Thankfully, insurers usually have a grace period when it comes to payments. Just make sure you don’t go beyond it.  

Pro tip: If your bank and insurer allow it, automate your payment so you don’t miss the due date.

✔️ Know the Dos and Don’ts of Claims Application

In case the unthinkable happens, you should know what to do. Here are some of the things to keep in mind when activating or using your car insurance policy: 

  • Do inform your insurance company. No matter how simple or serious the incident is, you should call your insurer right away. They will walk you through what you need to do to file your claims. Likewise, they will inform you of the pertinent documents you need to submit. 
  • Do submit a police report. Filing a police report may be a hassle, but it’s important in strengthening your claim. 
  • Do check the time frame. Keep in mind that your car insurance policy may have a time parameter. If you report the incident beyond a certain period, your insurer may not process your claims application.
  • Do know the claims channels. Insurers maintain various channels for claims, from websites to telephone numbers. Choose the most convenient for you. 
  • Do follow up. Sometimes, processing takes time, depending on the gravity of the situation. Don’t hesitate to ask the insurer for an update. 
  • Do avail of the insurer’s free legal assistance. As mentioned, some insurers offer legal services or referrals you can use if the case gets complicated. 
  • Do file a dispute with the car insurance company if your claim is rejected. Request a review to see if they missed a detail. 
  • Don’t withhold information. When explaining what you went through, tell everything to the best of what you can remember. Don’t lie, as it will be seen as fraudulent.
  • Don’t negotiate or settle with the other driver right away. They won’t know the real cost of the damage—all they can provide is an estimate. Deal only with the insurer. 
  • Don’t make arrangements with dubious personalities. These include third parties promising to compensate you for the damages. You may end up getting the short end of the stick. Worse, you might get scammed.

✔️ Update Your Policy When Necessary 

Before you renew your policy, you may want to update it based on changes in your lifestyle and financial health.

If you’ve moved to a new address prone to natural disasters, add an Acts of Nature cover. On the other hand, you may consider removing theft cover if you live in a top-rated and safe neighborhood. Get roadside assistance if you frequently use your car for rural journeys. 

Likewise, update your policy after significant changes in your life, such as a marriage, work promotion, or new family member. 

Keep in mind that you don’t have to stick to your existing insurer. If you don’t find their coverage and customer service satisfactory, consider switching to a different provider. It's also a valid move if your existing provider’s rates are too expensive for you. 

Read more: How to Change Car Insurance Companies: A Step-by-Step Guide

Final Thoughts

Car insurance is an additional expense to think about. However, the premium is a small price to pay, especially if the inclusions and benefits are comprehensive.

When buying car insurance, exercise utmost caution. It’s not uncommon for shady fly-by-night operations to sell fake CTPLs at irresistibly low rates or convenient locations close to major LTO hubs. Don’t be tempted by cheap car insurance in the Philippines price—if it’s too good to be true, it probably is.

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 compare products here at Moneymax, you'll find a variety of the cheapest car insurance in the Philippines from the most trusted providers. Start your search for the best car insurance here!

Get free car insurance quote


Venus has almost 20 years of combined experience in content marketing, SEO, corporate communications, and public relations. Most of her career was spent creating informative articles on personal finance and digital marketing. She also invests in stocks, mutual funds, VUL, and Pag-IBIG MP2. Venus graduated cum laude with a Journalism degree from the University of the Philippines Diliman. A hardcore Hallyu Tita, she loves bingeing Korean shows on Netflix while bonding with her cats. Follow Venus on LinkedIn.


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