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Car insurance

Car Insurance Market in the Philippines

By Mayee Gonzales on February 7, 2018 | Reading time:

Car Insurance Market in the Philippines |
Getting a car insurance can be confusing, especially for first-time vehicle owners. With more than 60 car insurance providers in the Philippines, finding the right insurer is definitely a test. However, never settle for less. Buying an “okay” car insurance can be a pain so be wise and understand your policy from start to end.

To land a more beneficial insurance deal, take the time to understand the car insurance market. Here’s an in-depth guide to help you out.

Factors that Affect Comprehensive Car Insurance Rate

Not all insurance rates are equal. Unlike CTPL, comprehensive car insurance policies don’t have a fixed rate as they depend on many factors. Below, gain a better understanding of the car insurance market by determining the factors that affect a policy’s rate.

  • Age

Older cars are more likely to break down, which is why insurers consider a vehicle’s age when estimating comprehensive car insurance rates.

  • Usage

Is your vehicle for personal or for commercial use? Do you use it every day or just for special occasions? Car usage is a major factor when it comes to insurance costs. Regularly used cars are more likely to deteriorate, making it more expensive to repair.

  • Car make and model

Do you own a Mercedes or a Toyota? Is the model new or fancier than other vehicles? Your car’s make and model affect your insurance rate because they signify the value of your vehicle. Luxury cars, for example, have more expensive parts overall affecting the costs of its claim.

  • Car body type

SUVs, trucks, and other large automobiles are more likely to inflict serious (read: costly) damage in the event of a collision because of their size. This means insurers have to shell out larger settlements when other parties file claims against such vehicles.

How Car Insurance Companies Earn

According to the World Health Organization, 1.25 million people around the world die every year because of road crashes. If all of these people file a claim for their accident—amounting to millions or even billions of cash—will car insurance companies still earn? The answer is yes. Despite millions of claims, car insurance companies still take home a profit ultimately contributing to industry growth.

The concepts that keep car insurance companies profitable work the same way today as they did 40 or 50 years ago. This is why the industry keeps growing and why new insurance companies sprout almost every decade. To understand this better, here are three basic principles that make car insurance companies earn.


When you buy an insurance policy, you are required to pay a fee called a premium. Car insurance companies put this premium to short- and long-term interest-earning investments to grow and secure their funds. Interest earnings represent a large source of the overall profits insurance companies generate.

Underwriting Income

Underwriting income derives from the difference between how much money insurers collect for policies and how much money insurers release when a client files a claim. For example, if a client pays P20,000 for a premium policy with a validity of one year but only submits P5,000 worth of claims, the insurance company automatically earns P15,000 from that client. However, if the insurance company pays more than P20,000 for the claim, then they suffer a loss.


Insurance companies also buy policies for themselves. When insurers have too many claims, they purchase policies from other providers to keep them in business. This strategy utilizes the concept of shared risk and limits of liability.

How to Get a Comprehensive Car Insurance in the Philippines

Getting a comprehensive car insurance can be challenging, especially for first-time vehicle owners. However, it doesn’t always have to be that way. By comparing insurers, you can get a policy that does not only suit your vehicle but your lifestyle and budget as well. Don’t let the process baffle you. Below is a quick guide to getting a comprehensive insurance policy.

1. Compare providers

At present, there are more than 60 car insurance providers in the country. Going through all of these companies may be worth it, but it’s still a waste of time. To find the best provider, it is advisable to take advantage of comparison platforms like Other than sorting your options more easily, this allows you to find the most cost-effective policy as well.

2. Choose add-ons

If you’re feeling generous, why not add more features to your policy? Apart from basic coverage, you can also purchase add-ons such as Road Assistance, Loss of Use, and Acts of Nature, among many others. This, of course, depends on your needs and budget. Ask your insurer about this and don’t forget to take note of additional benefits included in your basic policy.

3. Prepare requirements

After choosing an insurer, it’s time to prepare the paperwork. Here are the requirements you will need:

  • Original vehicle receipt
  • Your vehicle’s Certificate of Registration
  • Your driver’s license
  • Another government ID

Your provider may request additional copies of your original receipt and COR so prepare these, too.

4. Expect your policy

Once you’ve submitted the documents, the next step is to receive your policy. You will receive a digital copy through e-mail as well as a hard copy, which should arrive at the address you provided. Don’t forget to read the fine print and ask about any terms you find disagreeable with your insurer.

5. Pay your insurance

This may occur before or after receiving your policy. You can pay direct to your insurer, by credit card, or even online.

A Look Into the Car Insurance Market: Top Companies in the Philippines

AFP General Insurance

AFP General Insurance is the primary non-life insurer provider of the Armed Forces of the Philippines. Established in 1979, AFPGEN has extended their services to private sectors providing motorcar, marine, and aviation insurance coverage.

Charter Ping-An

Founded in 1960, Charter Ping-An Insurance Corporation prides itself on providing not just car insurance but non-life insurance and security products as well. Owned by AXA Philippines, the company has 22 branches nationwide.

FPG Insurance

Formerly known as Federal Phoenix Assurance Corporation, FPG Insurance provides a comprehensive range of general insurance products for businesses and individuals in the Asia Pacific region. The company is a subsidiary of the Zuellig Group of Companies.

MAPFRE Insular Insurance Corporation

Launched in 1934, MAPFRE is the largest non-life insurance company in Latin America. Primarily established as an automotive insurance provider, the company now offers Travel Insurance, OFW Insurance, Engineering Insurance, and Surety Insurance among many others.

Milestone Guaranty and Assurance

Milestone Guaranty and Assurance Corporation began their operations in 1962 when only few insurance companies were operating in the Philippines. Committed to providing top-notch non-life insurance policies, the company provides comprehensive plans, including Casualty Insurance, Engineering Insurance, Personal Accident Insurance, and Motor Insurance among many others.

Oriental Assurance Corporation

Apart from motorcar insurance, Oriental Assurance Corporation also provides general insurance products such as fire, marine, aviation, engineering, and electronic equipment solutions. The company promises unique insurance needs at a reasonable price.

Perla Compania de Seguros, Inc.

With 18 branches nationwide, Perla Compania de Seguros prides itself as a company built to provide faster claims that any other insurers in the Philippines. Established in 1963, Perla Insurance is the preferred choice of most banks and financing companies due to its financial strength.

Pioneer Insurance and Surety

Pioneer Insurance and Surety Corporation is one of the leading insurance companies when it comes to property, marine, motor, and aviation policies. Established in 1964, the company is in partner with Allianz AG of Germany, a financial services company that focuses in insurance and asset management.

QBE Seaboard Insurance

Despite being new in the industry, QBE Seaboard is one of the world’s top 20 general insurance companies. Headquartered in Sydney, Australia, the company provides insurance products to businesses and individuals worldwide.

SGI Philippines

SGI Philippines is one of the largest insurance companies in the Philippines. They aim to serve different sectors with quality insurance products such as motor, health, and marine. Their latest product—Micro Insurance—services the risk and protection needs of the masses at an affordable price.

Standard Insurance

Standard Insurance offers a wide range of property and general insurance products for individuals, small to medium enterprises, and local and global corporations. They are one of the leading motorcar insurance companies in the Philippines with more than 52 branches nationwide.

For a more complete list of car insurance companies in the Philippines, click here.

Tips on Buying Car Insurance

  • Educate yourself

If it’s your first time buying car insurance, it is wise to read about the market first. Do a research on the top providers and the policies they offer to have an idea of what you are getting into.

  • Compare providers

There are more than 60 car insurance providers in the Philippines and finding the best one can be an ache in the head. Take advantage of comparison platforms like to find the best car insurance deal.

  • Know how much you can afford

Budget is very important when getting car insurance. Don’t splurge even if you have extra cash. Remember that the best car insurance deal is the one that suits your vehicle, your lifestyle, as well as your budget.

  • Ask about hidden fees

Additional fees may as a surprise so always ask your insurer about this. Insurance providers should give you a schedule of fees, which typically include cancellation fees and change of address. Read them and negotiate with your provider to waive or lower such charges.

  • Understand your policy in layman terms

It is important to know everything about your policy before signing it. Ask your agent about unfamiliar terms and make sure you understand every page of the fine print.

Read and always compare insurance providers before buying a policy. The time and effort you put into research and comparison can significantly lower your car insurance costs. It’s best to be smart than ignorant, especially when it comes to insurance policies.

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