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Car Insurance in the Philippines

Car Dashboard View

In the Philippines, there are two main types of motor car insurance policies to protect entities from various risks due to accidents: 

  • Comprehensive Motor Car Insurance

  • Compulsory Third Party Liability 

Comprehensive Auto Insurance

Third Party Liability

In case of accidents and the insured is at fault, the third party liability coverage will  be triggered.

Acts of Nature (optional)

This provides coverage to damage to vehicles due to natural calamities like Flood, Typhoon, Earthquake.

- Bodily Injury

Provides coverage to medical expenses of the aggrieved parties.  This is a  top-up to the CTPL insurance coverage all vehicles in the Philippines are required to have.

- Property Damage

Provides  coverage to damages to properties of other entities due to accidents.

Other benefits a comprehensive car insurance policy usually have:

  • 24/7 Roadside Assistance

  • Emergency Towing
  • Minor on-site repairs
  • Vehicle removal
  • Arrangement of Rental Transport

  • Car-napping assistance
  • Locksmith Assistance

What is covered in a comprehensive car insurance policy?

In the Philippines, the covered risks included in a comprehensive auto insurance policy are generally as follows:

Damage to own vehicle

This covers damages to your own vehicle caused by a collision with another vehicle or object. 

Personal Accident Insurance for Passengers

This covers medical expenses for you and your passengers in case of injuries sustained in an accident.

CTPL Insurance 

Requirement for LTO Registration

A Compulsory Third Party Liability (CTPL) insurance policy covers bodily injuries due to accidents when the insured is at fault. 

  • What is motor insurance?
    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.
  • Is car insurance mandatory in the Philippines?
    It is mandatory to have a CTPL (Compulsory Third Party Liability) insurance policy before registering a vehicle with the Land Transportation Office (LTO).
  • What does the CTPL insurance cover?
    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.
  • What does Third Party Liability (TPL) Insurance cover?
    TPL insurance covers damages or injuries to third parties (other people and properties) caused by your vehicle in an accident.
  • Is car insurance mandatory in the Philippines?
    It is mandatory to have a CTPL (Compulsory Third Party Liability) insurance policy before registering a vehicle with the Land Transportation Office (LTO).
  • What does Comprehensive Insurance cover?
    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.
  • What is "Acts of Nature" coverage?
    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
  • What is the motor insurance claim process?
    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.
  • Can I choose my own repair shop in case of an accident?
    Some insurance companies allow you to choose your repair shop, while others may have preferred or accredited repair shops for faster processing.
  • What should I do in case of an accident?
    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.
  • What is a deductible in a car insurance policy?
    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:
  • How much is comprehensive insurance?
    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.

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