Beginner’s Guide to Comprehensive Car Insurance in the Philippines

Published: September 22, 2020 | Updated: October 9, 2020 | Posted by: Ricky Publico | Car Insurance


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 on car insurance, 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 car 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 car 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. Let’s break down the difference between the two.

What is Compulsory Third Party Liability (CTPL)?

comprehensive car insurance in the philippines - what is ctpl

In a nutshell, car insurance is mandatory in the Philippines, particularly, the Compulsory Third Party Liability (CTPL) kind. CTPL insurance is the most basic and least expensive car insurance in the Philippines.

It is a government-mandated insurance policy that covers both private and public vehicles. Every vehicle owner in the country is required to buy this policy. You need to secure a CTPL insurance first before registering your vehicle with the Land Transportation Office (LTO).

How Much is CTPL Insurance?

CTPL insurance rates differ by length of coverage and type of vehicle. Below are the annual rates mandated by the Department of Finance’s Insurance Commission.[1]

  • Private Vehicles: PHP 650.40
  • Light and Medium Trucks (not exceeding 3,930 kg.): PHP 700.40
  • Heavy Trucks (more than 3,930 k.g.): PHP 1,290.40
  • Motorcycles: PHP 340.40

What Does CTPL Insurance Cover?

In a nutshell, a CTPL Insurance protects the interest of the “third party,” hence the name. In the event of an accident involving your vehicle, this policy covers the financial responsibilities associated with property damage, bodily injury, permanent disablement, and/or death of the victim/s. It also provides immediate financial assistance to the victim and his/her family of up to PHP 100,000.

How Do I Get CTPL Insurance?

Getting a CTPL insurance is easy and quite inexpensive, thanks to the Insurance Commission of the Department of Finance. They oversee and mandate CTPL insurance rates to ensure customers pay the same price across all insurance companies. To get you started, 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

Step 1: Choose a non-life insurance provider and buy your policy from them.
Step 2: Upon purchase, you will receive a policy with conditions together with a Confirmation of Cover or COC. Don’t forget to make copies of every document you will receive.
Step 3: Bring these documents to the LTO upon registration to prove that your vehicle has a third party insurance coverage.

Read more: CTPL Insurance in the Philippines: Understanding the Basics

What is Comprehensive Car Insurance?

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

True to its name, a comprehensive car insurance 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 Car Insurance in the Philippines?

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 car 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 car insurance 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
  • Alternative Transport
  • Overnight Accommodation Amount - P 3,000
  • Towing Amount - P 5,000
  • Vehicle Removal Crane Services Amount - P 10,000
  • 10 Years of casa eligibility
  • 366 accredited repair shops
  • P 5,000,000 Maximum total insured
New India Assurance

Get Free Quote
  • Overnight Accommodation Amount - P 1,500
  • Towing Amount - P 4,000
  • Vehicle Removal Crane Services Amount - P 10,000
  • 10 Years of casa eligibility
  • 30 accredited repair shops
  • P 3,500,000 Maximum total insured
SGI Philippines

Get Free Quote
  • Overnight Accommodation Amount - P 2,000
  • Towing Amount - P 5,000
  • Vehicle Removal Crane Services Amount - P 10,000
  • 5 Years of casa eligibility
  • 36 accredited repair shops
  • P 5,000,000 Maximum total insured
Stronghold Insurance

Get Free Quote
  • Alternative Transport
  • 10 Years of casa eligibility
  • P 3,000,000 Maximum total insured
The Mercantile Insurance Corporation

Get Free Quote
  • Overnight Accommodation Amount - P 2,000
  • Towing Amount - P 5,000
  • Vehicle Removal Crane Services Amount - P 10,000
  • 10 Years of casa eligibility
  • 77 accredited repair shops
  • P 5,000,000 Maximum total insured

What Does a Comprehensive Car Insurance Cover?

  • Own Damage/Theft. This is the most common coverage across car insurance companies in the Philippines. It covers car damage, car loss, and damage/loss of declared accessories and spare parts due to cases like car robbery, vandalism, and fire or external explosion.
  • Property Damage or Voluntary Third Party Liability (VTPL). VTPL mainly covers damages caused by your vehicle to third party properties. For example, if you get into an accident and damage someone else’s car, your insurance company will cover all property damages associated to that incident.
  • Personal Accident or Auto PA. This usually comes as a free add-on upon purchase of a comprehensive car insurance in the Philippines. Auto PA provides financial aid to you and your passengers in the event of injury, disablement, or death caused by a vehicular accident.
  • Acts of Nature. Also known as Acts of God, this became extremely relevant after typhoon Ondoy flooded Metro Manila and destroyed thousands of cars. Many insurance companies offer this coverage due to the extreme weather conditions in the country. Acts of Nature covers vehicles from natural disasters such as earthquake and flood, and even animal contact.

What Else Can a Comprehensive Car Insurance Cover?

A basic comprehensive car insurance in the Philippines caters to the common needs of vehicle owners. However, there are instances where you can add a little more coverage for your car. Here are some add-ons you may want to consider.

  • Legal Assistance. If you are involved in a legal case caused by a vehicular accident, this coverage can aid you financially by paying for hearings and legal consultations. Legal assistance allows you to settle legal issues in a more cost-effective way.
  • Roadside Assistance. Consider adding this coverage to your policy if you wish to receive immediate assistance when your car breaks down on the road. Roadside assistance covers various vehicle services including towing services, roadside repairs, and fuel deliveries.
  • Loss of Use. If you can’t use your car due to damage, this will reimburse any transportation expenses incurred during your vehicle’s repair period. Some insurance companies also offer temporary transport services in events like this.
  • Riots, Strikes, and Civil Commotion. This coverage covers damages from kicking, scratches, broken mirrors, shattered windows and windshield, and other forms of vehicle damage caused by riots.

Read more: 8 Car Insurance Add-ons You Need to Consider

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 Car Insurance

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 car insurance 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 compare.

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.

Read more: 7 Types of Claims You Can File in the Philippines

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 a car insurance. From choosing the right comprehensive car insurance 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.

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