Question 1

What is car insurance?

Accepted Answer

Car insurance covers you from the costs of medical bills, property damage, and vehicle damage after a car accident. It serves as your peace of mind when you’re driving your vehicle on a regular basis.

Question 2

Is car insurance required in the Philippines?

Accepted Answer

Yes, car insurance is required in the Philippines. There are two types of auto insurance in the Philippines, one of which is required and the other optional:
CTPL insurance or Compulsory Third Party Liability is a Land Transportation Office requirement for car registration in the Philippines. It covers the financial responsibilities associated with bodily injury, permanent disablement, and/or death of the victim or third party. CTPL insurance doesn’t cover you.Comprehensive insurance is an all-inclusive type of motor insurance. It is not mandatory to have but it is highly recommended to get one. It covers not only your vehicle but also you and your passengers from road-related risks and hazards.

Question 3

What are the common motor insurance terms?

Accepted Answer

It’s easy to get lost in a sea of unfamiliar words when you first read your motor insurance policy. It might also be hard to recall your car insurance agent’s explanation of the terms but we’re here to refresh your memory. Below is a list of commonly used car insurance terms you’ll encounter:
1st PartyAlso called the Assured. This is the owner of the vehicle and the insurance policy.
2nd PartyAlso called Insurer. This is the insurance company where you applied for car insurance.
3rd PartyThis refers to the other person/people involved in the accident that’s not the 1st party, the 2nd party, or relatives or employees of the 1st party. A good example would be bystander/s and/or person/s in the other car/s involved, or your passengers that aren’t your relatives or employees.
Agreed ValueThe amount the insurance provider will pay if your car gets totaled or stolen. This is a fixed amount that you and the provider have agreed on at the start of your policy term.
At FaultThe amount the insurance provider will pay if your car gets totaled or stolen. This is a fixed amount that you and the provider have agreed on at the start of your motor insurance policy term.
CertificateOne of the documents you’ll receive as part of your motor insurance policy. It’s also one of the most important because this serves as proof that your car is insured.
ClaimA request filed by the insured and sent to the insurer to cover or reimburse expenses from damages or loss of your car or other coverages as stated in your insurance policy.
Deductible FeeA type of participation fee that involves a car accident or loss and an investigation proves that you’re at fault. Some policies don’t include deductibles and for those that do, it should follow the Motor Tariff’s minimum deductible fee. You can increase your deductible fee if you want to lower your insurance premium.
Depreciation FeeA type of participation fee for your car’s damaged or lost parts due to an accident or loss. The amount will depend on the value of the new parts when it was damaged or lost compared to its value when the vehicle was purchased. This is only applicable to vehicles older than 3 years and is not applicable to total vehicle loss.
Fair Market ValueThe amount the insurance provider will pay if your car gets totaled or stolen. This is based on your car’s make, model, mileage, age, variant, and overall status at the time of the incident.
Legal AssistanceA type of coverage that provides financial assistance for legal fees in case you get into an accident that will be taken to court.
Loss of UseA type of coverage that provides transportation allowance while your car is being repaired.
Participation FeeThe amount that you need to pay out of your pocket before the insurance provider pays for the rest of the expenses.
Policy ScheduleThis document details the coverage of your motor insurance such as the type of coverage and add-ons, and includes the pricing related to it. Depending on the type of insurance you chose, it will indicate the specifics of the agreed or market value that the insurance will pay for and the participation fee.
PremiumThis is the amount that you’ll pay to your insurer for your vehicle insurance policy.
Roadside AssistanceThis is a type of add-on to your vehicle insurance if you want your coverage to include car issue support while on the road like towing, tire replacement, battery jumpstart, lockout services, and fuel delivery.
SurchargeThis is an added cost to your premium due to an at fault accident, filing several claims, or filing for an expensive claim.
TotaledAlso called write-off. When a vehicle is marked as totaled by the insurance provider, it means that the cost of repairs will exceed the vehicle’s market value.

Question 4

What types of car insurance coverage can I get?

Accepted Answer

Aside from CTPL, which is a requirement of the Land Transportation Office, car insurance coverages aim to protect you, your passengers, and your vehicle from road accidents or incidents that will cause harm or poses a threat. Insurance providers offer several options that consider situations a driver needs protection from with comprehensive car insurance coverage as your best bet since it covers most of your needs. There are other coverages that you can get for additional protection but note that this will also cost you more. Below are the most common car insurance coverages offered in the Philippines:

1. Comprehensive Car Insurance Coverage - protects your vehicle from a wide range of causes, from motorist accidents and property damage to Acts of Nature and vandalism.
•
Own Damage/Theft - covers car damage, loss, and damage/loss of declared accessories and spare parts. In extreme cases like car robberies, fires, or explosions, your car insurance will handle all repair expenses.

•
Property Damage or Voluntary Third Party Liability (VTPL) - covers damages caused by your vehicle to other people’s properties in the event of an accident. Regardless of who is at fault, your insurance will cover all property damages.

•
Personal Accident or Auto PA - covers the insured individual and the unnamed passengers inside the vehicle in the event of injury, disablement, or death caused by a vehicular accident. Usually, it comes free with your insurance policy.

•
Acts of God - covers damages caused by extreme natural disasters such as earthquakes and floods, and even animal contact. Acts of God is a popular coverage in the Philippines due to unpredictable weather conditions.

2. Liability Coverage - covers the cost of the damaged property or the medical bills of people injured in the accident up to a certain amount as specified in your policy.
3. Collision Coverage - takes care of the damages inflicted on your car. If your car received major dents from a freak collision accident, this type of motor insurance coverage will cover the repair costs.
4. Personal Injury Protection Coverage - takes care of the passengers involved in a road accident. You’ll need it to take care of you and your passenger/s’ medical expenses.

Question 5

What are the top car insurance companies in the Philippines?

Accepted Answer

Here are some of the top auto insurance providers to help you compare their features.

Car Insurance Company
Casa Eligibility
Accredited Repair Shops
Maximum Total Sum Insured
Overnight Accommodation
Towing Services
Vehicle Removal Crane Services

OONA Insurance

10 years
365
₱5,000,000
Yes, up to ₱3,000
Yes, up to ₱5,000
Yes, up to ₱10,000

Malayan Insurance

3 years
58
₱7,500,000
Yes, up to ₱1,000
Yes, up to ₱4,000
Yes, up to ₱8,000

Prudential Guarantee

10 years
N/A
₱3,000,000
Yes, up to ₱2,000
Yes, up to ₱5,500
Yes, up to ₱15,000

SGI Philippines

5 years
134
₱5,000,000
Yes, up to ₱2,000
Yes, up to ₱5,000
Yes, up to ₱10,000

Stronghold Insurance

10 years
167
₱3,000,000
N/A
N/A
N/A

The Mercantile Insurance Corporation

10 years
77
₱5,000,000
Yes, up to ₱2,000
Yes, up to ₱5,000
Yes, up to ₱10,000

Standard Insurance

15 years
504
₱5,000,000
Yes, up to ₱2,500
Yes, up to ₱4,000
Yes, up to ₱10,000

FPG Car Insurance

5 years
172
₱4,000,000
Yes, up to ₱1,500
Yes, up to ₱5,000
Yes, up to ₱10,000

The table below shows the performance of car insurance providers in terms of net premiums written as reported by the Insurance Commission last 2021.

Car Insurance Company
Name Premium Written

Malayan Insurance Company Inc

₱4,079,633,561

Prudential Guarantee & Assurance, Inc.

₱3,900,308,008

Mercantile Insurance Company, Inc.

₱2,095,972,724

Standard Insurance Company Inc.

₱1,676,285,352

FPG Insurance Co., Inc.

₱1,454,027,271

Stronghold Insurance Company, Inc.

₱1,439,102,792

OONA Insurance Philippines

₱686,115,017

SGI Philippines General Insurance Company, Inc.

₱93,536,051

Question 6

How can I get free car insurance quotes online?

Accepted Answer

An efficient way to get quotes is to use a vehicle insurance comparison website like Moneymax that aggregates quotes and other details from multiple insurance providers in the Philippines. Your motor insurance quotation will be based on several factors, such as your car’s age and fair market value, and the motor insurance coverage and add-ons that you plan to include in your policy. Once you’ve requested a quote, you’ll receive a call from a car insurance advisor for further confirmation and a more in-depth look at your possible policy.

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Car Insurance Company	Casa Eligibility	Accredited Repair Shops	Maximum Total Sum Insured	Overnight Accommodation	Towing Services	Vehicle Removal Crane Services
OONA Insurance	10 years	365	₱5,000,000	Yes, up to ₱3,000	Yes, up to ₱5,000	Yes, up to ₱10,000
Malayan Insurance	3 years	58	₱7,500,000	Yes, up to ₱1,000	Yes, up to ₱4,000	Yes, up to ₱8,000
Prudential Guarantee	10 years	N/A	₱3,000,000	Yes, up to ₱2,000	Yes, up to ₱5,500	Yes, up to ₱15,000
SGI Philippines	5 years	134	₱5,000,000	Yes, up to ₱2,000	Yes, up to ₱5,000	Yes, up to ₱10,000
Stronghold Insurance	10 years	167	₱3,000,000	N/A	N/A	N/A
The Mercantile Insurance Corporation	10 years	77	₱5,000,000	Yes, up to ₱2,000	Yes, up to ₱5,000	Yes, up to ₱10,000
Standard Insurance	15 years	504	₱5,000,000	Yes, up to ₱2,500	Yes, up to ₱4,000	Yes, up to ₱10,000
FPG Car Insurance	5 years	172	₱4,000,000	Yes, up to ₱1,500	Yes, up to ₱5,000	Yes, up to ₱10,000