What is Car Insurance?

It’s your financial protection against vehicle-related

damages. A car insurance can include the
coverage/protection for following:

 Property –  Vehicle damages or theft

 Liability – If you’re the offending party, you are
legally required to pay for damages
 Medical – For covering medical-related expenses
brought about by car-related accidents (may also
include funeral/wage-lost expenses)

Why is it important?

Let’s go back to our scenario earlier (truck hits car).

If the truck has insurance, the owner can simply contact

the insurer and have them take care of  paying the
damages to the other party. This is called Third Party
Liability Insurance.

So instead of paying the expenses out of his own pocket

(truck owner), the insurance will pay for the damages
inflicted.

Imagine having no insurance in that situation and it was

concluded that he has to pay Php 50,000 to the other
party.

Aside from the expenses for fixing his truck, he also has
to shoulder the Php 50K for damages.

Double whammy indeed.

To quote the jeepney driver earlier – all I can say is,
“Saklap niyan, par!”

And that’s why car insurance is important. It’s

“protection for your pockets” against car-related
damages or accidents.

Also Read:  Top Life Insurance Companies & Plans in

the Philippines

Different types of Car Insurance

There are 5 main types of Car insurance in the
Philippines. Let’s take a quick look:

1. Comprehensive Coverage
I once made a quick trip to Mercury Drug and found a
small dent on my car’s door upon return. And while it
pains me to remember that moment, this is one example
of damage that a Comprehensive Coverage can pay for.

It covers an array of damages or losses that are not

caused by a collision. Damages caused by third parties,
vandalism or theft, natural calamities or weather (“Acts
of God”) are some examples of what can be covered
under this type of insurance.

2. Collision Coverage
A friend shared this following true story. While driving, a
taxi from the other lane got too close and clipped his
side mirror.
Both of their side mirrors were smashed. Here’s the
kicker: both of them drove off straight as if nothing
happened!

“Anu yun pre, duelo?!” I asked as I laughed. Talk about

modern day Jousting. Anyhoo, I got reminded of that
story since it can be categorized as a type of collision.

Accidents wherein your car incurs damages caused by

contact with another vehicle is covered by this one.

3. Liability Insurance
Remember our truck owner earlier? This is the type of
insurance he hopefully has.

If you are responsible in a car accident, Liability

Insurance covers both payment for car repairs and
medical bills to the inconvenienced parties.

4. Personal Injury Protection

Sh*t happens. Sometimes, no matter how much of a
defensive driver you are, unfortunate events occur when
you’re driving. Should you get injured, Personal Injury
insurance will help cover the medical bills.

It may also include protection against non-medical

related damages like lost wages and rehabilitation
costs.

5. Medical Coverage
Similar to Personal Injury protection but more focused
on providing medical coverage brought about by car
injury regardless if caused by the policyholder or third
party.

6. Acts of God Coverage

“AOG” or “Acts of Nature” is a type of car insurance
policy that covers and pays for car damages caused by
natural catastrophes (such as earthquakes,
typhoons/floods, animal contact, fire & explosion, falling
objects).

What does car insurance cover?

Here are some of the most popular packages and terms
you’ll encounter on the topic of car insurance.

1. Comprehensive Car Insurance

Protection from damages not caused by a collision.

Below are some of the benefits that a comprehensive

car insurance can cover:

 Third-Party Liability Insurance (bodily injury and/or

property damage) – up to P1,000,000
 Theft (based on the vehicle’s fair market value)
 Own damage (based on the vehicle’s fair market
value)
 Damage due to riots, strikes, or civil commotion
 Passenger Personal Accident (up to 18 seats
coverage)
 Towing service assistance and vehicle removal
 Ambulance service
 Legal assistance
  24/7 assistance – including locksmith service, fuel
delivery, battery jumpstarting, and tire replacement
 Stay & travel coverage due to breakdown of vehicle

2. Third Party Liability Insurance (CTPL)

Or also known as Compulsory Third Party Liability
Insurance/Property Damage/Voluntary Third-Party
Liability-property Damage – which is mandated by the
LTO (Land Transportation Office) for vehicle
registration and renewal.

The term “third party” refers to the other person

involved in the accident whose vehicle the policyholder
have impaired or damaged.

If you’re the policy holder and at fault, TLP insurance

will cover the expenses for the inconvenienced party.

3. First Party Insurance

If you’re the policy holder, this refers to you (First party).
Damages to your car will be covered by this insurance.

4. Add-on Coverages For Comprehensive Car

Insurance Excess Bodily Injury
Any additional type of insurance you wish to include in
your main Comprehensive Insurance that covers Excess
Bodily Injury.

5. Voluntary Third Party Liability (VTPL) – Bodily

Injury
This is used to cover for injuries caused to third parties.
Pros and Cons of Car Insurance: Is it for you?
As with any financial decision, there are Pros and Cons.

Let’s take a look at the good and bad sides of having a

car insurance.

Pros of Having a Car Insurance:

 Financial protection against all sorts of auto-related

damages/accidents (depends on the coverage)
 Peace of mind that you’ll have the funds to cover
any unexpected damages
 Saves you money – Paying from your own pockets
can be a whole lot more expensive (if the damage is
great) versus paying a premium.
 Saves you time and effort – Imagine dealing with the
finances and paperwork yourself (say you are the
offending party) versus having your insurer take
care of the bulk of the work
 Peace of mind knowing that your car has protection
against theft and damages and natural calamities

Cons of Having a Car Insurance:

 You will have to pay for it – Like any other type of

insurance, you need to pay the premium
 Deductibles – Fees that you need to pay before the
insurer can begin paying for coverage for your
policy
 Your current insurance might not include coverage
for other types of damages
 It’s possible you will not utilize it at all (which is a
good thing, if you think about it)
How much does a car insurance in the
Philippines cost?
In our country, getting a Compulsory Third Party Liability
(CTPL) is mandatory upon registering a vehicle. Let’s
take a look at the current rates of this most basic type
of car insurance.

One-Year Coverage for CTPL

Vehicle Type CTPL Rate

Private cars 560

Motorcycles, Tricycles, Trailers 250

Taxis, PUJs, and Mini Buses 1,100

Light to Medium Trucks 610

Heavy Trucks and Private Buses 1,200

ACs and Tourists Cars 740

PUBs and Tourist Buses 1450

Source: Insurance Commission

If you wish to go beyond the basic CTPL coverage, a

Comprehensive Car Insurance package might be the one
you need.

On average (for entry-level to medium-priced cars),

expect to pay anywhere between 12,000 to 20,000
pesos (or higher) annually. Rates will vary depending
on the model and make of the car so expect to shell out
more for bigger (and more expensive) vehicles.

Optional Add-ons

 Roadside Assistance
 Legal Assistance
 Loss of Use

Top Car Insurance Companies in the

Philippines
There are dozens of auto insurance companies to
choose from. We’re listing down the top 8 based on
Gross and Net Insurance Premiums written.

*Premiums written refers to the amount of premiums a

customer is required to pay for the insurance written
during the accounting period

Insurance Company Net Premiums Writte

Charter Ping An Ins. Corp 4,079,426,121

Malayan Insurance Company Inc. 4,068,429,286

BPI/MS lnsurance Corporation 2,956,461,047

FPG lnsurance Co., lnc. (Federal Phoenix) 2,512,844,167

Pioneer Insurance & Surety Corporation 2,388,438,522

Commonwealth Insurance Company 1,567,713,637

Standard Insurance Company Inc. 1,455,043,088

MAPFRE Insular lnsurance Corporation 1,317,171,112
Source (subject to updates): Insurance.gov.ph
*Amounts are in Php peso

With a multitude of names popping up when you Google

for them online, which insurance companies are the
most popular? What types of car insurance packages do
they offer?

To help you in your search, we’ve compiled a list of the

top insurance companies to date along with the
products and services that they provide. (Note: Please
check each insurance provider’s website for full details
of packages.)

1. Charter Ping An Insurance Corporation

Car Insurance cost starts at: P15,600+/year

This insurance company is a subsidiary of Philippines

AXA Life Insurance Corporation. They provide non-life
insurance services which includes: fire, motor car,
personal accident, marine, bonds casualty, and
engineering insurance products.

Here are some of the insurance services they offer

(note: some are available as options only)
  Compulsory Third Party Liability (CTPL)
 Acts of Nature
 Unnamed Passenger Personal Accident (UPPA)
 Overturning and malicious damage
 Excess Bodily Injury
 Property Damage
 Accidental collision
 Fire and explosion,
 Theft

Inquire Online
2. Malayan Insurance Company, Inc.
Comprehensive car insurance premium starts
at: P23,000+/year

Malayan Insurance Co., Inc. used to be known as China

Insurance and Surety Company.

It was founded in 1930 and is has its roots in the city of

Manila. It operates as a subsidiary under the Yuchengco
Group of companies.

Here are some of the insurance services they offer

(note: some are available as options only)

 Own Damage
 Third Party Liability Cover
 Personal Accident Cover
  Loss of Use Cover
 Acts of God Protection
 Riots, Strikes, & Civil Commotion Coverage
 Standard Automobile Accessories Protection

Apply Online
3. BPI/MS Insurance Corporation
BPI/MS Insurance Corporation is a subsidiary under the
management of the Bank of the Philippine Islands. They
specialize in underwriting for accident and health
insurance.

Here are some of the insurance services they offer

(note: some are available as options only)

 Compulsory Third Party Liability (CTPL)

 Voluntary Third Party Liability-Bodily Injury (VTPL-
BI)
 Accidental Collision
 Theft
 Fire, Explosion, Lightning and Self-Ignition and
Malicious Damage
 FREE Express Roadside Assistance

Inquire Online
4. FPG Insurance Co., Inc. (Federal Phoenix)
Premium car insurance cost starts at: P15,000+/year

Federal Phoenix Assurance Company, Inc. was founded

in 1958. Federal Phoenix Assurance Company, Inc.
operates under the management (subsidiary) of Zuellig
Group.

Here are some of the insurance services they offer

(note: some are available as options only)

 Own Damage
 Theft
 Compulsory Third Party Liability Cover
 Voluntary Third Party Liability – Bodily Injury and
Property Damage
 Acts of Nature
 Accidental Death and Disablement benefits for the
driver and passengers
 Coverage for burial expenses
 Actual In/Out-Patient medical expenses as a result
of accident
 Roadside Assistance
 Additional protection in the event of surgical
treatment caused by a covered accident

Inquire Online
5. Pioneer Insurance & Surety Corporation
Pioneer Insurance & Surety Corporation was established
in 1954. Earlier in the decade, they were among the top
insurance companies in terms of total assets and gross
premiums written.
Here are some of the insurance services they offer
(note: some are available as options only)

 Compulsory Third-Party Liability (CTPL)

 Own Damage and Theft
 Excess Third Party Liability – Bodily Injury/Death
 Excess Third Party Liability – Property Damage
 Acts of Nature Cover (AON)
 Accident Insurance for Passengers
 Loss of Use
 Personal Effects

Inquire Online
6. Commonwealth Insurance Company (CIC)
Premium car insurance cost starts at: P16,300+/year

Commonwealth Insurance Company (CIC) was founded

in 1935 by Don Andres Soriano, the man who founded
San Miguel Brewery.
Here are some of the insurance services they offer
(note: some are available as options only)

 Carnapping
 Acts of Nature
 Own Damage
 Bodily Injury
 Personal Accident
 Property Damage
 Third Party Liability

Inquire Online
7. Standard Insurance Company Inc.
Premium car insurance cost starts at: P17,800+/year

Standard Insurance Co. Inc. operates as a non-life

insurance company in the Philippines. It offers motorcar,
cellphone, property, marine, accident, and
comprehensive general liability insurance services.
Here are some of the insurance services they offer
(note: some are available as options only)

 Compulsory Third Party Liability (CTPL)

 Voluntary Third Party Liability (VTPL) / Excess
Bodily Injury (EBI)
 Third Party Property Damage (TPPD)
 Own Damage (OD)
 Acts of Nature Coverage
 Loss of Use Cover
 Theft
 Add-On Coverages: Free Personal Accident
Insurance Rider (PA Rider), Free Personal Accident
Insurance for the Named Insured, Roadside
Assistance Program (RAP)

Inquire Online
8. MAPFRE Insular Insurance Corporation
Mapfre Asian Insurance, the company used to be known
as Provident Insurance Corporation.  It was founded in
1934 and its main headquarter is located in Muntinlupa.
It operates as a subsidiary of Corporacion Mapfre SA
(based in Europe).
Here are some of the insurance services they offer
(note: some are available as options only)

 Compulsory Third Party Insurance

 CTPL with Road Assistance
 Auto Liability Insurance
 Comprehensive Car Insurance
 Comprehensive Car Insurance with Acts of Nature

Inquire Online
How to apply for a car insurance in the
Philippines
Once you’ve decided on an insurance company, you
either visit the nearest branch or connect with them by
phone or online to ask for the requirements.

Here are the 4 main requirements for applying for a car

insurance

 Driver’s license
 Car’s Original Receipt
 Car’s Certificate of Registration
 Additional Government I.D

10 Steps for Getting the Best Car Insurance

A car insurance is a significant and worthwhile financial
investment. You have to do your due diligence in
choosing and managing it carefully.

Here are the top 10 tips for securing the best car
insurance in the Philippines.

1. Decide on the type of Car Insurance Coverage You

Need

The first step is to decide which type of coverage to get.

Depending on the level of protection you want, you can
either get the most comprehensive or the most basic. Or
you can go custom and pick a basic package with add-
ons squeezed in.

2. Do some research

We all have that one friend or family member who is an

absolute car guy/gal. Aside from

keeping their cars in pristine condition, they also know

the best insurance packages to

get.

Even better, do some thorough research online and

make comparisons. Sites like iMoney
PH, MoneyMax.PH, or eCompareMo can help.

Another good idea are Facebook Groups for your

specific car model. Since they have the same car, you
can ask around for real-life quotes and advice on which
ones to get. Most folks here are helpful, they will even
connect you with the actual rep they got their insurance
from.

3. Prepare a list of questions you have about the

insurance package

Study the offering on the insurer’s website. Does it

match what you’re looking for? Finer details probably
won’t be covered on the site so it’s a good idea to
prepare a list of your top concerns.

Do this before setting up the meeting.

4. Contact the insurer you selected (then throw all

questions you prepared)

That way, the stuff that concerns you most about the
whole deal can get addressed right away.

And if doesn’t match your expectations, at least you can

still change it to something more appropriate. Or switch
insurers completely if needed.

5. Read your policy 10 times

Fine prints are always a pain to understand. All the

legalese in there might look intimidating but do your
best to decipher it. Differential calculus will always be
harder (from my experience).

Put a bit of time and effort to fully understand the

contract.
It will help you know what is included or not. Saves a lot
of headaches in the future should you need to make the
claim.

Pro tip: Look for the following terms on the contract

–  “Collision” and “Personal Injury” coverage,  “Insuring
Agreement, “Limit of Liability,” “Payment for Loss,”
“Damages We (the insurance company) Will Pay
For,”  and  “Determining Amount of Loss.”

6. Ask about discounts

I read somewhere once that the most successful

people in the business ask for discounts. Why? Is it
because they’re cheap? No, it’s because they see it as
an exercise in persuasion. And boy are they good at it.
Lesson: It doesn’t hurt to ask.

Two weeks ago, I saw a tiny Lightning McQueen toy in a

bazaar in Centris and asked the seller how much. It was
for my kid. “150 po”, she said.

With a Close-Up confidence smile I said, “120 na lang

ate.. oh eto sakto pala (showed her the 100 and 20 peso
bill on my pocket)”. With a bit of hesitation she said, “Sir
naman oh.. sige na nga”.

To celebrate my negotiating triumph, I bought a 30-peso

gulaman. (man I’m cheap).

On a more serious note, things like low annual mileage,

having anti-theft and security devices, insuring multiple
vehicles, no accident or violations on record, are valid
points that an insurer considers when calculating the
final quote.

If your car have these, it can be a source of leverage for

asking a discount. And if it doesn’t? Well, it didn’t hurt to
ask.

7. Throw away extra coverages/add-ons you don’t need

If you feel some add-ons in your package are

unnecessary, ask the insurer if it can be removed. If not,
shop for a more basic package then squeeze add-ons as
you see fit (if it will turn out to be cheaper, that is).

The extra money you save can go to paying off a higher

deductible (see below).

8. Ask if raising your insurance deductible will reduce

the premium

Quite often, a higher deductible (regular payments) will

yield a cheaper overall premium price. If the insurer
offers this, consider it. Every tiny bit of savings helps.

9. Ask if paying the premium in full will yield a cheaper

total price

If you have the funds to spend, you should ask for this
option. After all, why not simply pay for it on one go if
you have the cash anyway? Saves you money, time, and
effort (versus managing premiums monthly/quarterly).

10. Avoid gaps in your auto-insurance coverage

A lapse on your insurance (you didn’t get coverage for a
few years) can be costly when you’re finally ready to
renew it. Insurers will point out this gap and could result
to a higher premium for your new insurance.

Related: Car Loans: How to Get Approved Fast in the

Philippines

Common Mistakes when Getting Car Insurance

1. Always going for the cheapest option

Insurance is one of those products that you only really

get to use when the unfortunate event happens. It’s not
like a physical product that you can hold and use
everyday.

This is probably why most car owners tend to go for the

cheapest insurance option. It always seems like an
unnecessary expense (since we can’t use it right away).

So we buy the cheapest plan then justify it to ourselves

by saying “At least may insurance”.

It’s only until an actual car mishap occurs (knock on

wood), that we realize what we’ve been paying can’t
cover for the expenses.

When this happens, you end up paying more. Which

brings me to the next bullet.

2. Not understanding the fine print

Fine prints are your friend. It’s a legal document that
shows you exactly what you’re signing up for. So don’t
treat it like a piece of document that belongs in your
car’s compartment.

Let’s face it. Sometimes, there are car insurance reps

out there who’ll say anything just to get you to sign on
the dotted line. Protect yourself from sales talk.

Do your due diligence and understand the exact details

of the contract. Or have someone more apt do it then
have them explain it to you.

The bottom line is to ensure all your expectations are

met and you won’t be left hanging when you need to
make the claim.

3. Not shopping around for more choices

Whenever we’re shopping, we like having choices. After

all, one shop might offer the same product at a lower
price (this happens a lot). Also, it gives you more
choices to select from.

Not all insurance coverage are created equal. By

checking all potential options, you’re exposing yourself
to better deals. Example, before I signed up with my
current internet provider,

I made sure I checked what others had to offer. Helped

me in determining the right package for me.

4. Not considering additional coverage

Our country goes through an onslaught of about 20
typhoons a year. If you’re a car owner, you know it
makes sense to get protection from its effects.

Additional coverage may include protection from Acts of

Nature like typhoons, fire and external explosion
coverage, as well as roadside assistance (very helpful).

5. Not asking for a discount

If my 30-peso discount earlier was not enough to

convince you, how about a few extra thousands pesos?
As mentioned above, having a good driving record and
car safety features may help in getting a discount.

All you need to do is ask. Sometimes, as you shop

around, discounts may get offered to entice you.

You can use it as leverage when you look around. “Hey,

this other insurance company told me they can give me
his X discount. Do you offer the same?”

Filing and how to claim your car insurance

At the scene of the incident

 Contact the police

 Stay calm and make sure the area is safe before you
alight the vehicle
 Setup your Early Warning Device if possible
 Call your insurance company ASAP
 Exchange contact information with the other party
 Take photos
 Get a copy of the police report
  Don’t approve or accept anything in the scene of the
incident

List of documents that your insurance company

will ask for:

 Completed claim form

 Photos from the incident. Try to include as much
details as possible.
 Police report
 Accredited repair shop’s estimate for repairs
 Copy of driver’s license and its receipt
 Copy of Motor Vehicle Registration Renewal
(MVRR) Official Receipt and Certificate of
Registration.

Upon submission of documents, the insurer will provide

the Letter of Authorization (LoA).

Present this to the accredited repair shop so restoration

of the car can commence.

Wrapping it all up
We hope that you found this guide useful, as auto-
insurance is something that usually gets taken for
granted in our country. At the end of the day, it’s really
just all about protecting your precious investment (your
car).

If you have any tips or suggestions that other readers

will find useful, please let us know in the comment
section below!