Car Insurance in the Philippines

Motor insurance, which can also be referred to as auto insurance or car insurance, is an insurance product that aims to protect the Insured against financial losses to its vehicle. A motor insurance policy applies to cars, trucks, motorcycles.

It is mandatory to have a CTPL (Compulsory Third Party Liability) insurance policy before registering a vehicle with the Land Transportation Office (LTO).

In case of accidents and the insured is at fault, the mandatory CTPL policy compensates the insured for financial losses due to liabilities to third parties due to bodily injuries.

TPL insurance covers damages or injuries to third parties (other people and properties) caused by your vehicle in an accident.

It is mandatory to have a CTPL (Compulsory Third Party Liability) insurance policy before registering a vehicle with the Land Transportation Office (LTO).

Comprehensive insurance covers damages to your own vehicle due to accidents, theft and third party liabilities. In most cases, it can also include emergency assistance & towing services.

Acts of Nature coverage protects against damages to your vehicle caused by natural disasters such as floods, typhoons, earthquakes, etc. Normally it is an add-on coverage in comprehensive insurance policies

First, get the name and contact numbers of the parties / drivers involved. Furnish the requirements including copies of ORCR of the involved vehicles, driver’s licenses, report from relevant authorities (e.g. police report, security report). Take photos of the vehicles and its damages.

After gathering the required documents and proofs, report the incident to your insurance company or your agent and follow their instructions. The insurer’s claims team will evaluate the incident and should get back to you with a report or offer.

Some insurance companies allow you to choose your repair shop, while others may have preferred or accredited repair shops for faster processing.

Immediately report the accident to your insurance provider and follow their instructions. Collect all necessary information from the other party involved and document the scene. If there are other parties involved and you are at fault, some insurance companies will require you to secure a police report.

In case of claims, the deductible is the insured’s share for the repair of the vehicle.

In the Philippines, car insurance is an important consideration for vehicle owners. Here are some frequently asked questions about car insurance in the Philippines:

Premiums are affected mainly by factors such as market value of your vehicle & its usage.

To give an estimate, a private SUV which is valued at around Php 1,500,000, a one-year comprehensive insurance may cost around Php 26,000, including taxes.