How Much Does Car Insurance Cost in the Philippines?

Venus Zoleta

Venus Zoleta

Last updated September 21, 2022

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 can rest easy knowing your budget won't blow up should you need to bring your car to the casa for repair.

You can research car insurance prices in the Philippines, compare quotes from different providers, and find the policy that fits your needs at a rate that fits your budget.

Comprehensive Car Insurance Price in the Philippines

Price range: ₱8,000 to ₱30,000+ per year

car insurance price in the philippines - comprehensive insurance

Aside from the basic CTPL coverage, you may also opt to extend your insurance with car insurance add-ons that cover 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 price of a good car insurance policy in the Philippines may range from around ₱12,000 to ₱20,000 per year. That's more or less ₱1,000 per month.

To find out how much it will cost you to insure your vehicle, compare affordable car insurance quotes for free at Moneymax. Using this auto insurance online comparison tool will let you know that, for example, if you own a 2022 Toyota Vios J Base Model 1.3L Gas M/T, the cheapest policy will cost you around ₱13,286 per year.

Factors Affecting Comprehensive Car Insurance Price 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 car insurance for 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 ₱30,000 to insure per year.

car insurance quotation philippines

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

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 estimation of the costs of car insurance in the Philippines. For accurate car insurance prices in the Philippines, you may request 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 ₱1.5 million and exceeds six months but not one year, your initial computation is:

₱1.5 million x 5% = ₱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 ₱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 in 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 that to 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 2022 car models and may be subject to change.

Car ModelCar Insurance One Year Price (with Acts of Nature Coverage)Car Insurance Monthly Price
Ford Fiesta₱9,101₱758
Hyundai Accent₱9,897₱825
Mitsubishi Mirage G4₱8,868₱739
Honda City₱11,116₱926
Toyota Wigo₱11,426₱952
Toyota Vios₱13,286₱1,107
Toyota Avanza₱13,426₱1,118
Honda Civic₱18,836₱1,569
Toyota Innova₱13,172₱1,097
Toyota Altis₱18,701₱1,558

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 were only included 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 to Consider

Car Insurance CompanyMaximum Total Sum InsuredCasa EligibilityAccredited Repair ShopsOvernight AcommodationTowing ServicesVehicle Removal Crane Services

SGI Philippines

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₱5 million5 years36Up to ₱2,000Up to ₱5,000₱10,000

Malayan Insurance

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₱7.5 million3 years58Up to ₱1,000Up to ₱4,000Up to ₱8,000

Mercantile Insurance

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₱5 million10 years77Up to ₱2,000Up to ₱5,000Up to ₱10,000

MAPFRE Insular

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₱5 million10 years365Up to ₱3,000Up to ₱5,000Up to ₱10,000

New India Assurance

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₱3.5 million10 years30Up to ₱1,500Up to ₱4,000Up to ₱10,000

Stronghold Insurance

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₱3 million10 years167N/AN/AN/A

Prudential Guarantee

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₱3 million10 yearsN/AUp to ₱2,000Up to ₱5,500Up to ₱15,000

Looking Beyond Car Insurance Prices in the Philippines

car insurance in the philippines price - understanding car insurance prices

While car insurance cost in the Philippines 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 car insurance companies in the Philippines now offer specialized car insurance packages, and what’s best for you may vary depending on your specific needs.

If you're a car owner in the Philippines, you can input your car details on Moneymax's car insurance platform to get 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.

Read more: Where Should You Get Your Car Insurance: Bank, Dealer, or Broker?

Final Thoughts

As a car owner, you must exercise caution before you invest in a car and in car insurance.[1] 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 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!

car insurance policy online

Source: [1] Is Buying a Car an Investment? (Caldwell, 2019)

Venus leads the blog content strategy and optimization at Moneymax as the Head of Editorial Content. She has 15+ years of experience in content marketing, corporate communications, and public relations. Venus graduated cum laude with a Journalism degree from the University of the Philippines Diliman. Before joining Moneymax, Venus had written informative guides and articles, specializing in personal finance and digital marketing. She also invests in stocks, mutual funds, VUL, and Pag-IBIG MP2. A hardcore Hallyu Tita, she enjoys bingeing K-dramas on Netflix while bonding with her rescued cats. Follow Venus on LinkedIn.