Comprehensive Car Insurance: What is it and Do You Need it?

Owning a car entails many responsibilities. Before you can even drive it, you need to accomplish basic requirements such as getting it registered and insured.

While registering your car is straightforward, getting comprehensive car insurance in the Philippines is more complex. You need to research, determine the coverage your vehicle needs, and choose an insurance company that offers the best deals.

But don’t let the process discourage you from insuring your car. Learn everything about comprehensive car insurance through this beginner-friendly guide.

What is Comprehensive Coverage in Car Insurance?

First, what is the meaning of comprehensive car insurance in the Philippines? True to its name, comprehensive insurance for cars in the Philippines or “compre” is a type of policy broader than the other type of car insurance, Compulsory Third-Party Liability Car Insurance (CTPL).

What Does Comprehensive Car Insurance Cover?

Comprehensive car insurance provides financial protection for you and your car with the following coverage:

• Acts of God, including typhoons and earthquakes
• Liabilities caused by accidental collision and overturning
• Car theft and burglary
• Fire and explosion
• Riots, strikes, and other malicious acts by third parties
• Damage to your own car
• Third-party liability or damage to other people's property, including cars, buildings, and others
• Legal liabilities for third parties in case of death or bodily injury

Take note that comprehensive car insurance doesn't cover ordinary vehicle wear and tear.

Read more: What Inclusions Should You Get With Your Car Insurance?

Is Comprehensive Insurance Mandatory for Cars in the Philippines?

First, you need to understand that there are two types of car insurance in the Philippines: the aforementioned CTPL and comprehensive car insurance.

What is the difference between CTPL and comprehensive car insurance? While CTPL insurance protects the general public, comprehensive insurance protects you, your car, and your passengers from an extended list of road-related risks and hazards.

Comprehensive insurance is not required in the Philippines, unlike CTPL which is compulsory for all vehicle owners.

You might think CTPL insurance is enough if you’re a good driver. But even if you’re careful on the road, you'll likely encounter a driver who’s not. Should an accident happen, CTPL insurance can only cover so much.

Comprehensive car insurance offers a sense of security knowing that your investment won't go to waste, no matter what happens on the road. 

Without comprehensive insurance, you’re just gambling with fate. You'll shoulder all damage associated with your vehicle in the event of an accident. You'll have to pay for repairs, replacements, medical bills, legal services, and other fees.

Who Needs Comprehensive Car Insurance?

While it’s not mandatory, every car owner can benefit from a comprehensive car insurance policy's inclusions.

Just take a look at the Acts of God cover, which can financially protect you from flooding and other types of damage caused by typhoons. It’s a must-have since the country weathers at least 20 typhoons a year. 

Also, if you take busy roads regularly, you need comprehensive car insurance. Busier thoroughfares often come with more accident risks, thus the need for protection. 

Are you a new driver? Newbies are likely to get into accidents, so make sure to get a comprehensive car insurance policy. Keep in mind, however, that policies for new drivers tend to bear heftier premiums.

How Much is Comprehensive Car Insurance in the Philippines?

There are no fixed rates for comprehensive insurance for cars in the Philippines. Every comprehensive policy coverage differs by price, as they depend on the current state of your vehicle.

Coverage can cost between ₱10,000 to as much as ₱100,000 per year. Various factors influence the cost of your insurance premium: 

• Model - The fancier the vehicle, the more expensive the policy.
• Make - Luxury and foreign makes are more costly to insure.
• Year - Older cars are cheaper to insure. Most insurers apply a straight-line 10% annual depreciation^[1] to the value of vehicles.
• Usage - How worn out is the car? Its condition will affect the price.
• Accessories - The number of accessories installed in your vehicle can also increase the rate.
• Safety features - The safer the car is, the cheaper it is to insure.
• Fair market value - Fair market value^[2] refers to the estimated price of your car according to its model and series. The car insurance cost is higher for more expensive vehicles. It's a relatively accurate estimate of how much the insurance company will cover in case of vehicle damage or loss. Insurers also consider your car’s depreciation when determining the price of your insurance.
• Depreciation - How new/old is your car? Cars depreciate over time, which also decreases the cost of insuring them.
• Driving experience – As mentioned, new drivers tend to fetch more expensive policies since they’re prone to accidents. 

Of course, the overall price may vary depending on the types of car insurance coverage included.

Read more: Price of Luxury: Insurance for Expensive Cars in the Philippines

Where to Get a Free Comprehensive Car Insurance Quotation in the Philippines

Below is a list of top car insurance companies and their features. Compare your options and get a free quote from Moneymax!

📌 OONA

Formerly known as MAPFRE, OONA is a car insurance company in the Philippines that provides various coverage options for your car. 

OONA’s Auto Comprehensive Insurance is the company’s most complete car insurance. Here are its inclusions: 

• Partial or total loss damage due to collision, theft, fire, malicious acts, or acts of nature
• Legal liabilities to third parties in case of death, injury, or property damage
• Complimentary road side assistance 

If you want to give your Auto Comprehensive Insurance policy a boost, you may want to include supplementary coverage, such as for strikes and riots. 

📌 Malayan Insurance

Malayan Insurance’s AutoMaster offers comprehensive protection against accident-related injuries and other types of damages. Take note that Malayan Insurance only insures motor vehicles up to eight years old. 

Get the following product benefits: 

• Personal damage and automobile loss
• Personal accident 
• Riots, strikes, and civil commotion
• Third-party liability
• Acts of nature
• Car accessories protection
• Loss of use (up to ₱500 allowance per day for up to 15 days while the car is being repaired)
• Roadside assistance
• Valuable accessories protection (optional)

📌 Prudential Guarantee and Assurance, Inc.

You can also get comprehensive car insurance coverage from Prudential Guarantee and Assurance, Incorporated. Policyholders enrolled in its Auto Insurance Program can exclusively enjoy the following privileges anywhere in the Philippines 24/7: 

• Vehicle retrieval service - Prudential will provide a free retrieval service if your vehicle falls in a ravine, gutter, or bridge. 
• Vehicle breakdown service - In case of a breakdown, you can avail of minor on-site repairs, like jumpstart, battery boosting, tire changing, car lockout, and fuel delivery. 
• Towing service - You can get free towing to the nearest repair facility if your car breaks down or gets involved in an accident. 
• Alternative transport to destination - If your vehicle breaks down outside Metro Manila and immediate repair isn’t possible, Prudential will arrange for a vehicle to bring you to your destination. 
• Alternative overnight accommodation - In case your car breaks down outside Metro Manila and immediate repair or alternative transport is unavailable, Prudential will provide free standard overnight hotel accommodation.
• Ambulance service - Prudential will dispatch an ambulance to take passengers to the nearest medical facility in case the insured vehicle meets an accident.
• Emergency relay service - In case of an accident or vehicle breakdown, Prudential can relay urgent messages upon the client’s request.

📌 SGI Philippines 

SGI Philippines offers complete protection for both private and commercial vehicles.

Enjoy essential coverage with Private Car Insurance: 

• Third-party liability
• Property damage
• Bodily injury
• Personal accident
• Acts of Nature

SGI Philippines’ Commercial Vehicle Insurance applies to buses, trucks, and taxis. Coverage includes:

• Fire
• Theft
• Self-ignition-caused damage
• Lightning
• Burglary
• Riots/strikes
• Earthquakes
• Floods
• Accidents
• Malicious acts

📌 Stronghold Insurance

Get a Stronghold Motor Car Insurance policy if you want peace of mind on and off the road. It offers coverage to private cars, motor trades, and commercial vehicles. This type of insurance policy can cover:

• Losses due to theft
• Vehicle damage due to a traffic accident
• Malicious damage by a third party
• Legal liability against accidents to third parties that result in property damage, bodily injury, or death

📌 Mercantile Insurance 

Protect your precious car on the road with Mercantile Motor Car Insurance. This insurer has been in the business for more than 60 years, so you can feel at ease with its decades of experience.  

Mercantile Insurance’s comprehensive car insurance has the following inclusions: 

• Own damage
• Excess bodily injury
• Theft 
• Property damage 
• Acts of nature 
• Auto passenger personal accident insurance 

Motor Car Insurance value-added services include the following:  

• Auto Assistance Program
• Teleconsultation 
• Emergency access via mobile app

📌 Standard Insurance

Car Protect by Standard Insurance is another excellent option for car owners seeking the most comprehensive protection. It offers the following types of coverage: 

• Own damage - In case of accidental collision, falling, overturning, fire, and other third-party malicious acts resulting in damage to property, Standard Insurance has you covered.
• Theft - In case thieves steal your car or parts of it, you're covered.
• Excess bodily injury - Opt for this if you want more beyond your regular third-party liability coverage against death or bodily injury. 
• Acts of nature - Get protection against typhoons, floods, and other forces of nature. 
• Third-party property damage - You’re also covered against liability for damage caused by your insured vehicle to a property that belongs to a third party. 

Standard Insurance offers a voluntary Personal Accident rider.

📌 FPG Insurance

If you’re looking for complete car insurance protection, get one from FPG Insurance. MyAutoMate by FPG Insurance provides coverage against the following: 

• Own damage
• Acts of nature 
• Theft 
• Strikes, riots, and civil commotion (SRCC)
• Voluntary third-party liability (bodily injury and property damage)
• Personal accident insurance
• Cover for undeclared non-standard accessories 
• Inter-island transit cover 

FPG Insurance’s MyAutoMate also comes with free roadside assistance, provided that your vehicle is below 10 years old and covered by the said insurance program. If your car is insured with FPG, you can call the company’s hotline anytime you need emergency assistance due to the following: road traffic incidents, acts of nature, destruction caused by fire, vehicle immobilization caused by theft, etc. 

For roadside assistance, you’ll get the following: 

• Vehicle assistance – This includes towing, battery boosting, locksmith service, delivery of spare key, misfueling cover, and flat tire replacement, among others. 
• Personal assistance – Under this, you’ll get hotel accommodation, relay of urgent messages, and driving directional assistance, just to name a few. 
• Medical assistance – This covers hospital admission assistance, ambulance coordination assistance, health professional appointments, and more. 
• Information assistance – This includes taxi arrangement services (including Grab), alternative driver service assistance (in case you’re unable to drive the vehicle; costs to be covered by you), and information services regarding road conditions, weather, nearest fueling stations, and telephone numbers of hospitals, police outposts, and fire stations.

To sum it up, here’s a table that compares the coverage of comprehensive car insurance products in the Philippines:

Note: This is based on published details on each provider's website. Contact your preferred insurer for more information. 

8 Things to Consider When Buying Comprehensive Insurance for Your Car

Buying car insurance for the first time can be intimidating, especially when you don’t understand what you’re buying. Think over these considerations before making a decision. 

✔️ What the Fine Print States

As the driver and car owner, it's essential that you fully understand everything before signing it. Read the documents provided to you. Check the inclusions and exclusions, plus the clauses and terms that will help you during claims and renewal.

Also, ask the insurance provider to explain all the fine print to you.

✔️ Your Budget

When looking for comprehensive insurance for your car in the Philippines, consider your vehicle, lifestyle, and budget. While more coverage means more security, it also means more expenses.

Be smart and get only the policy you need. Before signing on the dotted line, determine if you can afford the car and insurance coverage.

Read more:

• Honda Car Insurance in the Philippines 2024: Prices for Top Models
• How Much is Mitsubishi Car Insurance in the Philippines?
• Toyota Car Insurance in the Philippines: Your Cheapest Options

✔️ Your Car's Fair Market Value

Many people overlook the value of their car and how this will impact the cost of their insurance. Some old cars that you can buy for cheap might be uninsurable. 

✔️ The Insurance Provider

Don’t settle with a single insurance company when other companies can offer you a better and cheaper deal. Read more about the top car insurance companies in the Philippines and the coverage they offer.

✔️ Claims Process

Convenience is an important consideration in buying car insurance. Find an insurance provider you can call 24/7, as any accidents can happen at any time of the day. 

Ask about the details for reporting a claim. Peace of mind should be the primary purpose of having your car covered.

✔️ Premium Payment Options

Go for an insurance provider with a payment schedule that’s easy on your wallet. Ask your agent about all possible payment options if you can’t afford an annual fee. 

Most companies have yearly and six-month premiums. Others with more frequent options may add a surcharge. In contrast, you may get a discount for paying the annual cost at once.

✔️ Any Hidden Fees

Whatever the cost of the premium, you'll have to pay fees as well. Insurance providers should give you a “schedule of fees” that may include items like cancellation fees or change of address. Be aware of these fees and negotiate with the provider to waive or lower them.

✔️ Your Policy Schedule

Take note of your policy's term and expiry date to avoid additional charges from your insurance company.

How to Get a Comprehensive Car Insurance Policy in the Philippines

If you already have CTPL insurance, you should know the process. Note that you can purchase comprehensive insurance from a company other than your CTPL provider.

Take the time to compare rates from different providers to find the best deal possible. Once you’ve picked out your provider, here are the comprehensive car insurance requirements to prepare:

• Original vehicle receipt
• Certificate of Registration of your vehicle
• Your driver’s license
• Another valid government ID
• Photocopies of each document

As mentioned, it’s the same process when applying for CTPL insurance. Submit the documents to your chosen insurer, pay the premium, and wait for your insurance policy.

You'll receive a digital copy through email and a hard copy which will arrive at the address you provided. Always keep in touch with your provider for further questions regarding your insurance.

Comprehensive Car Insurance in the Philippines: FAQs

Still have questions on comprehensive car insurance? Find the answers below:

1. What is an insurance deductible? 

The insurance deductible is the amount of money you’ll need to cover before the insurance company processes your claim.

2. Can I cancel my comprehensive car insurance?

Yes, but remember that there are consequences. Primarily, you lose financial protection in case something happens to your car. Moreover, you have to pay the cancellation fee. 

3. What happens if I stop paying my car insurance premium? 

Generally, car insurance companies provide a grace period for settling late payments. But if you stop paying your premium, the following may happen: 

• The insurer will cancel your policy. This means you will lose the protection your insurance offers. 
•  Your next car insurance may get more expensive. Your history may give the insurer the impression that you’re a high-risk client. 

4. What are the payment options available for comprehensive car insurance? 

You can settle your annual car insurance in full, but you always have the option to pay the insurer in installments. The latter is a great alternative if you’re looking for flexibility in your budget. 

But how to settle your comprehensive car insurance in the Philippines? Generally, you can use these payment channels: 

• Credit card or debit payment (including auto-payment)
• Check payment
• Digital wallet payment (e.g. GCash)
• Online banking
• Phone banking
• Over the counter 

5. What happens to comprehensive car insurance if I sell my car? 

Remember that the car insurance policy is attached to your name. If you’re selling your car, you may request to transfer the insurance to the new owner. 

Final Thoughts

If you love your car and want to take care of it, you must get comprehensive insurance. It's the protection you, your passengers, and your vehicle need. 

But if the entire process of getting comprehensive car insurance in the Philippines still confuses you, we’re here to help!

Moneymax can take you through the entire process of getting auto insurance. From choosing the right comprehensive insurance for your car in the Philippines to filing your insurance claim, Moneymax will assist you every step of the way. 

Get started by getting a free quote below:

Sources:

• ^[1] Car depreciation: What it is and how it works (Bankrate, 2024)
• ^[2] Fair Market Value (FMV): Definition and How to Calculate It (Investopedia, 2024)