Beginner’s Guide to Comprehensive Car Insurance in the Philippines

By:

Published on: September 22, 2020 Last updated: April 10, 2021

Beginner's Guide to Comprehensive Car Insurance in the Philippines | Moneymax

Owning a car entails many responsibilities. Before you can even drive it, you need to accomplish basic requirements such as vehicle registration and car insurance coverage. While registering your car is a more straightforward task, getting a comprehensive car insurance in the Philippines can get more complex.

It requires you to do some research, determine the coverage your vehicle needs, and choose an insurance company that offers the best deals. But don’t let the process discourage your from insuring your car. Learn everything about comprehensive insurance in the Philippines through this beginner-friendly guide.

CTPL Insurance vs. Comprehensive Car Insurance

Let’s start with the basics. There are two types of auto insurance: Compulsory Third Party Liability (CTPL) and Comprehensive Car Insurance (Compre). It’s important to establish right off the bat that both types are equally essential. While it’s true that you only need to buy one, we highly recommend you to get both insurance policies to better protect you and your car.

Unlike comprehensive insurance, CTPL insurance is mandated in the Philippines. It is also the most basic and least expensive type of vehicle insurance in the country.

What is Comprehensive Insurance for Car in the Philippines?

comprehensive car insurance in the philippines - what is comprehensive car insurance

True to its name, a comprehensive insurance for car in the Philippines or “compre” is a more comprehensive type of policy compared to CTPL. It’s not mandatory, but it is highly recommended to buy one, especially if you use your vehicle everyday.

While a CTPL insurance protects the general public, a comprehensive insurance protects you, your car, as well as your passengers from an extended list of road-related risks and hazards.

Why Do I Need a Comprehensive Insurance?

You might think that a CTPL insurance is enough because you’re a good driver. Even if you think you’re the most careful driver in the country, you will most likely encounter someone who’s not. And when an accident happens, a CTPL insurance can only cover you so far.

Meanwhile, a comprehensive insurance provides financial protection to you and your car by covering car repairs and insuring you against damage, liabilities caused by collision, car theft, floods, and landslides, among many road mishaps.

In essence, buying a comprehensive insurance in the Philippines gives you a sense of security that no matter what happens on the road, your investment will not go to waste. Without a comprehensive insurance, you’re basically just gambling with fate.

In the event of an accident, you will shoulder all damages associated to your vehicle. You will pay for repairs, replacements, medical bills, legal services, and other fees that you’ll end up spending way more than what you would’ve saved from not buying a comprehensive policy.

How Much is Comprehensive Car Insurance?

Unlike CTPL insurance, there are no fixed rates when it comes to comprehensive insurance for car in the Philippines. Every comprehensive policy coverage differs by price as they depend on the current state of your vehicle. Factors that may affect your policy rate are:

  • Model – the fancier the vehicle, the more expensive the policy
  • Make – luxury and foreign makes are more expensive to insure
  • Year – older cars are cheaper to insure
  • Usage – how worn out is the car?
  • Accessories – the number of accessories can also increase the rate
  • Safety Features – the safer the car is, the cheaper it is to insure
  • Fair Market Value – how expensive is your car?
  • Depreciation – how new/old is your car?

Fair market value[2] refers to the estimated price of your car according to its model and series. It is a fairly accurate estimation 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.

In theory, you’ll get a cheaper insurance policy if you’re insuring an older car. Most insurers apply a straight-line 10% annual depreciation[3] to the value of cars. And of course, the overall price may vary on the types of car insurance coverage included.

Where to Get a Free Car Insurance Quotation

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

Car Insurance CompanyFeatures
MAPFRE Insular

Get Free Quote
  • 10 years of casa eligibility
  • 366 accredited repair shops
  • PHP 5,000,000 maximum total sum insured
  • Overnight accommodation - Yes, up to PHP 3,000
  • Towing - Yes, up to PHP 5,000
  • Vehicle removal crane services - Yes, up to PHP 10,000
Malayan Insurance

Get Free Quote
  • 3 years of casa eligibility
  • 58 casa repair shops
  • PHP 7,500,000 maximum total sum insured
  • Overnight accommodation - Yes, up to PHP 1,000
  • Towing - Yes, up to PHP 4,000
  • Vehicle removal crane services - Yes, up to PHP 8,000
New India Assurance

Get Free Quote
  • 10 years of casa eligibility
  • 30 accredited repair shops
  • PHP 3,500,000 maximum total sum insured
  • Overnight accommodation - Yes, up to PHP 1,500
  • Towing - Yes, up to PHP 4,000
  • Vehicle removal crane services - Yes, up to PHP 10,000
Prudential Guarantee

Get Free Quote
  • 10 years of casa eligibility
  • PHP 3,000,000 maximum total sum insured
  • Overnight accommodation - Yes, up to PHP 2,000
  • Towing - Yes, up to PHP 5,500
  • Vehicle removal crane services - Yes, up to PHP 15,000
SGI Philippines

Get Free Quote
  • 5 years of casa eligibility
  • 36 accredited repair shops
  • PHP 5,000,000 maximum total sum insured
  • Overnight accommodation - Yes, up to PHP 2,000
  • Towing amount - Yes, up to PHP 5,000
  • Vehicle removal crane services - PHP 10,000
Stronghold Insurance

Get Free Quote
  • 10 years of casa eligibility
  • 167 accredited repair shops
  • PHP 3,000,000 maximum total sum insured
The Mercantile Insurance Corporation

Get Free Quote
  • 10 years of casa eligibility
  • 77 accredited repair shops
  • PHP 5,000,000 maximum total sum insured
  • Overnight accommodation - Yes, up to PHP 2,000
  • Towing - Yes, up to PHP 5,000
  • Vehicle removal crane services - Yes, up to PHP 10,000

How to Get Comprehensive Car Insurance in the Philippines

Since you already have a CTPL insurance, you already know the process. Just remember that you are allowed to purchase a comprehensive insurance from a company other than your CTPL provider. Take the time to compare the rates from different providers to find the best deal possible. Once you’ve picked out your provider, prepare the following documents.

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

It’s basically the same process when applying for a CTPL insurance. Submit the documents to your chosen insurer, pay the premiums, and wait for your insurance policy. You will receive a digital copy through email as well as a hard copy which will arrive at the address you provided. Always keep in touch with your provider for further questions regarding your insurance.

Things to Remember When Buying Comprehensive Insurance for Your Vehicle

comprehensive car insurance in the philippines - things to remember when buying car insurance

  • Know your policy schedule. Take note of the term and expiry date of your policy to avoid additional costs from your insurance company.
  • Don’t skip the fine print. Before signing, read the documents provided to you. It’s important to know about the inclusions and exclusions as well as the clauses and terms that will help you during claims and renewal.
  • Consider your budget. When looking for a comprehensive insurance for your car in the Philippines, think about your vehicle, your lifestyle, and your budget. While more coverage means more security, it also means more expenses. Be smart and only get the policy you need.
  • Compare providers. Don’t settle with a single insurance company when other companies can provide you a better and cheaper deal. Read more about the top car insurance companies in the Philippines and let Moneymax help you out.

Basic Car Insurance Terms You Need to Know

  • At Fault – refers to the person/s who were at fault or responsible for the accident
  • Claim – refers to the request for your insurance company to cover or reimburse you from any expenses due to damages or loss
  • Deductible – refers to the amount you need to pay first before the insurance company can cover the rest of your expenses
  • Depreciation – refers to the gradual decrease in value of your car due to everyday use
  • Fair Market Value – refers to the estimated price of your car according to its model and series
  • Policy Schedule – refers to the full details of your insurance policy (price, coverage, validity, etc.)
  • Premium – refers to the payment for your car insurance
  • Primary Driver – refers to the person/s who are covered to drive the vehicle under the existing insurance policy
  • Surcharge – refers to the increase in your premium after a very expensive claim
  • Third Party – refers to any person outside and inside the car involved in an accident. Note that anyone related to you won’t be considered a third party.

Final Thoughts

Simply put, if you love your car and you want to keep it that way, you definitely need to get your own comprehensive insurance. It’s the protection you, your passengers, and your vehicle needs. But if the entire process of getting a 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 in every step of the way. And the best part? Our services are free! Get started by getting a free quote below.

Compare car insurance quotes in just a few minutes!

Sources:


Written By:

Ricky is the zaniest Senior Content Writer at Moneymax, with over five years of writing experience in the digital marketing industry. He is a huge fan of pro wrestling, smartphones, and binge-watching. Follow Ricky on LinkedIn.