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 a more straightforward task, getting comprehensive car insurance can get more complex. You need 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 you from insuring your car. Learn everything about comprehensive car insurance in the Philippines through this beginner-friendly guide.
What is Comprehensive Car Insurance?
First, what's the meaning of comprehensive car insurance in the Philippines? True to its name, comprehensive insurance for cars in the Philippines or “compre” is a more comprehensive type of policy compared to the other type of car insurance, Compulsory Third Party Liability Car Insurance (CTPL).
You're probably wondering, "Is comprehensive insurance mandatory?" It’s not, but it's highly recommended you buy one, especially if you use your vehicle every day.
While CTPL insurance protects the general public, comprehensive insurance protects you, your car, as well as your passengers from an extended list of road-related risks and hazards.
CTPL Insurance vs Comprehensive Insurance: What is the Difference?
As mentioned, there are two types of car insurance in the Philippines: CTPL and comprehensive car insurance. Both types are equally essential. While it’s true that you only need to buy one, it's better to get both insurance policies to better protect yourself and your car.
Unlike comprehensive insurance, CTPL insurance is mandatory in the Philippines. It's also the most basic and least expensive type of vehicle insurance in the country. Upon buying a CTPL policy, you'll receive a Certificate of Cover from your insurance provider.
What Does a Comprehensive Car Insurance Policy Cover?
Comprehensive car insurance provides financial protection for you and your car by covering the following:
- 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 wear and tear.
Why Do I Need Comprehensive Car Insurance Coverage in the Philippines?
You might think CTPL insurance is enough because you’re a good driver. But even if you think you’re the most careful driver in the country, you'll likely encounter someone who’s not. And when an accident happens, CTPL insurance can only cover so much.
In essence, buying comprehensive insurance in the Philippines gives you a sense of security that no matter what happens on the road, your investment won't go to waste. Without comprehensive insurance, you’re basically just gambling with fate.
Without a comprehensive policy, you'll shoulder all damage associated with your vehicle in the event of an accident. You'll pay for repairs, replacements, medical bills, legal services, and other fees. 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 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.
Factors that may affect your policy rate include the following:
- 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? Its condition will affect the price.
- Accessories - The number of accessories installed in your car 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? The car insurance cost is higher for more expensive cars.
- Depreciation - How new/old is your car? Cars depreciate in value over time, which also decreases the cost of insuring them.
Fair market value[2] refers to the estimated price of your car according to its model and series. It's a fairly 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.
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. Of course, the overall price may vary on the types of car insurance coverage included.
Read more:
- Cheapest Cars to Insure in the Philippines 2023
- How Much Will It Cost to Insure an Expensive Car in the Philippines?
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 Company | Maximum Total Sum Insured | Casa Eligibility | Accredited Repair Shops | Overnight Accommodation | Towing Services | Vehicle Removal Crane Services |
|---|---|---|---|---|---|---|
SGI Philippines
|
₱5 million | 5 years | 36 | Up to ₱2,000 | Up to ₱5,000 | ₱10,000 |
Malayan Insurance
|
₱7.5 million | 3 years | 58 | Up to ₱1,000 | Up to ₱4,000 | Up to ₱8,000 |
Mercantile Insurance
|
₱5 million | 10 years | 77 | Up to ₱2,000 | Up to ₱5,000 | Up to ₱10,000 |
MAPFRE Insular
|
₱5 million | 10 years | 366 | Up to ₱3,000 | Up to ₱5,000 | Up to ₱10,000 |
Stronghold Insurance
|
₱3 million | 10 years | 167 | N/A | N/A | N/A |
Prudential Guarantee
|
₱3 million | 10 years | N/A | Up to ₱2,000 | Up to ₱5,500 | Up to ₱15,000 |
How to Get a Comprehensive Car Insurance Policy in the Philippines
Since you already have CTPL insurance, you should know the process. Take note that you're allowed to purchase 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, here are the comprehensive car insurance requirements to prepare:
Comprehensive Auto Insurance Requirements
- 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 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, 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.
Buying Comprehensive Insurance for Your Vehicle: Things to Consider
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 important that you fully understand everything before signing it. Read the documents provided to you. Check the inclusions and exclusions as well as 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, 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.
✔️ 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 actually be uninsurable. Before signing on the dotted line, find out if you can afford both the car and insurance coverage.
✔️ The Company You'll Get the Insurance From
Don’t settle with a single insurance company when other companies can provide you with a better and cheaper deal. Read more about the top car insurance companies in the Philippines and let Moneymax help you out.
✔️ Claims Process
Convenience is an important consideration in buying car insurance. Find an insurance provider that you can call 24/7 as any accidents can happen any time of the day. Ask about the details for reporting a claim.
Peace of mind should be the main purpose of having your car covered, anyway.
✔️ Premium Payment Options
It’s smarter to 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 to pay an annual fee. Most companies have annual and six-month premiums, while others with more frequent options may add a surcharge.
However, you may also 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 what these fees are and negotiate with the provider to waive or lower them.
✔️ Your Policy Schedule
Take note of the term and expiry date of your policy to avoid additional costs from your insurance company.
Final Thoughts
Simply put, if you love your car and want to take care of it, you definitely need to get your own comprehensive insurance. It's the protection you, your passengers, and your vehicle need. But if the entire process of getting comprehensive car insurance 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. And the best part? Our services are free! Get started by getting a free quote below.
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