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 and whether they can afford it or not.
You might be wondering: "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 that 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?
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.
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. Getting 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.
|Premium Starts at
OONA Insurance (formerly MAPFRE)
|Motorcycles, private cars and SUVs, light/medium/heavy trucks, taxis, PUJs, mini-buses, PUBs, and tourist buses
|Most likely around ₱600/year
|Most likely around ₱600/year
|Private automobiles, motorhomes, motorcycles, scooters, mobiles, buses, road building equipment, and trailers
|Most likely around ₱600/year
|Private cars, motorcycles, and commercial vehicles
|Private cars, (including jeeps and AUVs), motorcycles, tricycles, trailers, light/medium trucks, and heavy trucks
|Most likely around ₱600/year
|Private cars, commercial vehicles, and motorcycles
Comprehensive Car Insurance Price in the Philippines
Price range: ₱15,000 to ₱50,000+ per year
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.
For basic vehicles on the lower end of the price scale, the average car insurance in the Philippines price may range from around ₱15,000 to ₱20,000 per year. That's a little over ₱1,000 per month.
To find out how much it will cost you to insure your vehicle, compare affordable car insurance quotes for free here at Moneymax.
💸 Factors Affecting 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 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.
- 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.
Types of Coverage 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.
- 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
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 accurate car insurance prices in the Philippines, you may 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.
If there are any additional fees, don't forget to add them to your sample premium computation.
🚗 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 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
|E 1.0L Gas M/T
|E 1.5L Gas M/T
|Base Model 1.3L Gas M/T
|E 1.3L Gas M/T
|LX 1.4L Gas M/T
|Prestige 1.5L Gas A/T
|E 2.0L Gas M/T
|E 1.8L Gas A/T
|Toyota Corolla Altis
|E 1.6L Gas M/T
|EX 2.0L Gas A/T
|Mitsubishi Montero Sport
|GLS 2.4L Diesel M/T
|G 2.4L Diesel A/T RWD SUV
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.
Best Car Insurance in the Philippines in 2024
Now that you have an idea of the car insurance price in the Philippines, are you ready to choose an insurer? Here are your options:
|Car Insurance Company
|Maximum Total Sum Insured
|Own Damage & Theft Coverage
|Acts of Nature Coverage
|Death / Disablement Coverage
The Mercantile Insurance Corporation
OONA Insurance (formerly MAPFRE)
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, employ some strategies like the following:
✔️ 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.
✔️ 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.
✔️ 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.
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.
Got Your Car Insurance? Here’s 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 in the cloud or 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.
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.
✔️ 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.
- 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 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. The worst that can happen is that you might get scammed.
✔️ Update Your Policy When Necessary
Has the year passed by without you using your car insurance? Good! But before you renew your policy, you may want to update it based on the changes in your lifestyle and financial health.
If you’ve moved to a new address prone to natural disasters, it only makes sense to 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.
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. Changing your insurer is also a valid move if your existing provider’s rates are too expensive for you.
As a car owner, you must exercise caution before you invest in a car and car insurance. 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!
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