Cash Mart

Call Us To Discuss Your Loan Today (028) 829 0000


Join over 30,000 happy customers who have experienced personal loans the Cash Mart way. Your online lending partner ANYTIME and ANYWHERE

Comprehensive Guide to Car Insurance in the Philippines

Planning to buy a car? Buying a car calls for many responsibilities. Getting car insurance would be helpful for you, though it might require some requirements for you to accomplish. 

Many individuals are hesitant about getting car insurance because they think it is complicated. But don’t let it be the reason for you not insuring your car. 

Here are things that you should know about car insurance in the Philippines. 

Table of Contents

What is Car Insurance?

Why Is Car Insurance Important?

Two Major Types to Car Insurance

Compulsory Third Party Liability (CTPL)

How much does CTPL cost?

What are the coverages of CTPL?

How to get a CTPL Insurance?

Comprehensive Car Insurance

Why is Comprehensive Car Insurance Important?

How much does Comprehensive Car Insurance?

What are the coverages of Comprehensive Car Insurance?

Other coverage of Comprehensive Car Insurance

How to Apply for a Comprehensive Car Insurance?

Things you Need to Remember When Applying for a Comprehensive Car Insurance

Basic Car Insurance Terms

Pros and Cons of Car Insurance

Benefits of Car Insurance

Disadvantages of Car Insurance


Step 1. Type of Car Insurance Coverage

Step 2. Research!

Step 3. Questions

Step 4. Read your Policy

Step 5. Extra coverages/Add-ons

Step 6. Discounts, Deductibles, and Premium

Step 7: Gaps in Auto-insurance Coverage

Common Mistakes in Getting a Car Insurance

How to File a Claim For Car Insurance?

Must Do at The Scene of Incident

What Are The Documents You Have to Prepare?

Comprehensive Guide to Car Insurance in the Philippines



It is financial protection for your car against any vehicle-related damages. The coverage for car insurance is the following:

  • Property: This covers vehicle damages and theft. 
  • Liability: If you are the offending party, you will be required to pay the damages.
  • Medical: If there are car-related accidents, this covers any medical expenses such as wage-loss expenses or funerals. 

Why is Car Insurance Important?

Having car insurance is important, especially in emergencies. Imagine a scenario where a red car hits a yellow car. 

If the owner of the red car has insurance, they can call the insurer and ask them to take care of the damages caused by the accident. So instead of them paying the damages using their own money, the insurance company will cover every damage. 

Car insurance can protect you financially, and that is how important it is. 

Two Types of Car Insurance

There are two types of car insurance. The first is Compulsory Third Party Liability (CTPL) and Comprehensive Car Insurance. Even if you only need to buy one insurance, it is recommended that you buy two. 

Aside from the two main types of insurance, there are other types. But let’s focus on the two major types of car insurance. 

Here are the two (2) major types of car insurance in the Philippines: 

1. Compulsory Third Party Liability (CTPL)

Compulsory Third Party Liability is the most basic and most inexpensive type of car insurance. The government mandates it for public and private vehicles. 

All vehicle owners in the Philippines are required to have this kind of policy. Usually, you have to buy this insurance before registering your vehicle in the Land Transportation Office (LTO). 

How much does CTPL cost?

The insurance rate for Compulsory Third Party Liability differs according to the length of the coverage and the type of your vehicle. Here are the government-mandated rates:

Private Vehicles: PHP 650.40

Light and Medium Trucks (not more than 3,930 kg): PHP 700.40

Heavy Trucks (more than 3, 930kg): PHP 1,290.40

Motorcycles: PHP 340.40

What are the coverages of CTPL?

This would protect the “third party” if your vehicle got involved in an accident. This insurance covers the financial responsibilities related to property damage, bodily injury, permanent disablement, and/or death of the victim/s. 

Aside from that, it also provides financial assistance to the victim and his/her family amounting to about PHP 100,000.

How to get CTPL Insurance?

One good thing about this type of insurance is that you can easily get your CTPL insurance. And aside from that, it is also inexpensive. 

The Insurance Commission of the Department of Finance mandated cheap insurance rates to ensure that customers could pay the same price as all other insurance companies.  

Here are the following documents that you need to prepare:

  • Original vehicle receipt
  • Certificate of Registration of your vehicle
  • Driver’s License
  • Another valid government ID
  • Photocopies of each document

Step 1. Choose your preferred non-life insurance provider. If all goes well with you, you can buy a policy from them. 

Step 2. You will receive a policy with conditions when you buy the insurance. It comes with the Confirmation of Cover (COC). Remember to always have a photocopy of each document that you will receive.

Step 3. Bring all the documents upon registration to the Land Transportation Office (LTO). This will prove that your vehicle is insured by third-party insurance. 

2. Comprehensive Car Insurance

Comprehensive Car Insurance is a more comprehensive type of car insurance. Though not mandated by the government, it is highly recommended to get one. It not only protects the public, but it also protects you, your car, and your passengers as well. 

This covers the type of damages or losses that are not caused by a collision. The damages could be caused by a third party, vandalism, theft, or natural calamities.  

Why is Comprehensive Car Insurance Important?

Comprehensive car insurance provides financial protection to you and your car. It covers your car repair and medical expenses against damage, liabilities caused by collisions, car theft, floods, landslides, and many other road misfortunes. 

This type of insurance will give you a sense of security in the event of an accident. You won’t have to spend your own money on repairs, medical expenses, legal services, and more. 

How much does Comprehensive Car Insurance?

There is no fixed rate with this type of car insurance. The policy coverage differs depending on the state of your vehicle. Here are the lists of factors that will affect the policy price rates:

  • Model: The more extravagant your vehicle is, the higher the policy rate.
  • Make: Luxury and foreign makes have a more expensive policy rate.
  • Year: The latest car models are more expensive than older cars.
  • Usage: The price depends on how worn-out your vehicle is. 
  • Accessories: The more accessories your vehicle has may increase the rate.
  • Safety Measures: It is cheaper to insure a more secure vehicle.
  • Fair Market Value: The policy rate depends on the price of your car in the market. 
  • Depreciation: The price of the policy rate depends on how old or new your car is.

NOTE: Fair Market Value is the estimated price of your car, which depends on the model and series. This accurately estimates how much coverage the insurance company provides in case of vehicle damage or loss. 

What are the coverages of Comprehensive Car Insurance?

  • Own Damage/Theft: This covers damage, car loss, and damage or loss of declared accessories and spare parts. But this is only applicable in car robbery, vandalism, and fire or external explosion cases. Among others, this is the most common coverage for car insurance. 
  • Property Damage or Voluntary Third Party Liability (VTPL): If you got caught in an accident and damaged someone’s car, the insurance company will cover all expenses related to the damages that are related to the accident. It covers the damages caused by your vehicle to the third party’s vehicle or properties.
  • Personal Accident or Auto PA: This provides financial coverage to you and your passengers. Auto PA is usually a free add-on to your car insurance. But it is only applicable in cases of injury, disablement, or death caused by a vehicular accident.  
  • Acts of Nature: This is also known as the “Act of God.” It pertains to financial coverage in incidents of severe weather conditions. This covers vehicles damaged by natural disasters like earthquakes, floods, and more. This insurance could also cover animal contact. 

Other coverage of Comprehensive Car Insurance

Here are the lists of some add-ons that you might want to consider on the coverage of your car insurance: 

  • Legal Assistance: If you got caught in an accident that is a legal case, this insurance would assist you financially for your hearings, legal consultations, or both. 
  • Roadside Assistance: This insurance would assist you in case your car breaks down on the road. It will cover different vehicle services like towing services, roadside repairs, and fuel deliveries. 
  • Loss of Use: During the repair period of your vehicle, you may reimburse all your expenses if you can’t use your damaged car. Some insurance companies may offer temporary transport services. 
  • Riots, Strikes, Civil Commotion: This insurance covers damages caused by scratching, kicking, and broken mirrors, windows, and windshields. It also covers other forms of damage to vehicles caused by riots. 
  • Pet Injury Coverage: If you always tend to bring your pet on your travels, this pet injury coverage might be of big help to you. This would cover your payment for vet treatments if your pet acquired injuries from a vehicle collision. This also covers the deaths of pets related to any vehicular accident. 
  • Lost Wage Recovery: This is a popular car insurance coverage Philippines, but not many know its benefits. If you cannot go back to work after an incident, you can reimburse some or your entire wage while recovering from your injuries.  

How to Apply for a Comprehensive Car Insurance?

Take note that you can avail of both the Compulsory Third Party Liabilities and Comprehensive Car Insurance. Choose your insurance company and compare the rates from those companies before settling on the best deal. 

Here are the lists of documents needed on your application:

  • Original vehicle receipt
  • Certificate of Registration of your vehicle
  • Driver’s License
  • Another government-issued valid ID
  • Photocopies of each of the documents

The process of your application is almost the same as CTPL. After submitting your documents to your preferred insurance company, you must pay a certain policy rate. Then the last thing for you to do is to wait for your insurance policy. 

You will receive both a digital copy via your email address and a hard copy at your mailing address. 

Things you Need to Remember When Applying for a Comprehensive Car Insurance

If you want to know what is the best car insurance in the Philippines, take note of the following factors. 

  • Policy Schedule: You should take note of your policy schedule, such as the term and expiry of your policy. You may avoid getting charged additional costs from your insurer. 
  • Fine Print: Read the documents carefully, and don’t skip the fine print. You must know the inclusions and exclusions of your policy. Also, take note of the clauses and terms that would aid you in your claims and renewals. 
  • Budget: When applying for comprehensive car insurance, consider your budget. Think about your vehicle and your lifestyle. Also, note that you need to pay more for additional insurance coverage. 
  • Providers: Research the top insurance companies in the Philippines before applying for car insurance. Compare them and choose the one that offers you better and more inexpensive deals. 


  • At Fault: This is the person responsible for the accident. 
  • Claim: This is a request from your insurance company. This asks your insurance company to cover or reimburse your expenses due to damage or loss. 
  • Deductible: Before the insurance company can cover the rest of the expenses, you must first pay for a certain amount. This is called the Deductible. 
  • Depreciation: This is the gradual decrease in your vehicle’s value due to frequent usage. 
  • Fair Market Value: This is your car’s estimated price based on the model and series. 
  • Policy Schedule: This is the full details of your insurance policy. 
  • Premium: This refers to the payment of your car insurance. 
  • Primary Driver: This is the driver of the vehicle who is covered by the insurance policy. 
  • Surcharge: This refers to the increase in your premium payment due to an expensive claim. 
  • Third-Party: Any person outside and inside the car involved in an accident.



  • It provides financial assistance and protection against all auto-related damages or accidents.
  • It gives you peace of mind when unexpected damages and accidents happen. Aside from that, it also gives you peace of mind knowing that your vehicle is protected. 
  • It helps you save money. You won’t have to use your own money to pay for damages. The insurance company will do it for you.  
  • You can save time and effort. The insurer will take care of the finances and paperwork for you. 


  • Paying for the premium. Just like the other type of insurance, you also need to spend a certain amount on your premium. 
  • There are some fees like deductibles. You need to pay it before the insurer pays your policy coverage.
  • Your current insurance company may not cover other types of damages.
  • There’s a possibility that you would not utilize the coverage policy at all. 


1. Type of Car Insurance Coverage

The first thing that you need to do is to know and consider the type of car insurance coverage that you need. It should be based on the protection that you want. You can choose between the most basic or the most comprehensive coverage. 

2. Research!

Do your research online. Compare the different insurance companies and the coverage that they offer. Contact a significant person in your prospective company and ask them questions about their insurance policies. 

You may also look for other customers and read or ask for their feedback about the insurance companies. One of the best ways to do this is to look for a representative that would give you all the information you need. 

3. Questions

Before meeting with the actual representatives, prepare your questions and concerns about the coverage and the insurance company. This will help you not forget any important questions you need to know. 

4. Read your Policy

Reading the fine print could be a bit of a struggle, but put your time and effort into it. This could be your protection in case an issue arises. 

You might encounter some terms that might be new to you, so take time to understand and know their meaning. Here are some terms that you need to look for:

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

5. Extra coverages/Add-ons

Some extra coverage and add-ons will be offered to you. But take only those that are necessary for you. You can also ask the insurer if they can remove the extra coverages and add-ons that you think are unnecessary. 

6. Discounts, Deductibles, and Premium

One good thing to help you save money is to ask your insurer for discounts. But make sure that the discount won’t compromise other coverages of your chosen insurance option. Some insurance companies usually give discounts to entice their clients. So, don’t be shy or hesitate to ask about it. 

If you are paying higher deductibles or a regular payment, you may ask your insurer if they could reduce your premium payment. Take the offer if the insurer gives it to you because it may give you a bit of savings. 

An insurance company usually offers a cheaper Premium if you pay in full. Ask your insurer if they offer this kind of option. Most insurance companies would give you payment options. They might offer you monthly or quarterly premiums, but they might have increased interest rates. 

So, if you have enough cash to pay the premium in full, it might help you save your money, time, and effort. 

7. Gaps in Auto-insurance Coverage

Gaps in auto insurance coverage could result in a higher premium payment. Make sure you ask your insurer if there are lapses with your coverage. 

Those gaps or lapses might result in a higher premium for your new insurance or when you renew your insurance. 


We often commit mistaken while searching for the best auto insurance Philippines. Avoid such problems causing issues by learning about them. Here is a list of what you must not do. 

1. Always choose the cheapest option

The cheapest comprehensive car insurance Philippines is always enticing. But make sure that the option you are paying covers necessary expenses in case a car mishap happens in the future. 

If you have chosen the wrong option, you might end up paying or spending more. So choose the option that is best for you. The one that offers good coverage at a cheap price or, at least, a price you can afford. 

2. Not reading and understanding the fine print

Fine prints are your friendly document. Be diligent enough to read and understand the document fully. Know the exact details in the fine print. And if you have questions, ask the representatives from your insurance company. 

Be careful with some representatives that would sales talk you into buying the insurance option. Be smart and make sure that your chosen topic is reliable when you make your claim in the future. 

3. Not seeking more choices

Do not settle with only one option. Always try to seek and understand other options that you can choose from. Choose the one that you think is the best package for you. Remember that not all insurance companies offer the same coverage. 

4. Not asking for Discounts and Additional Coverage

Try to ask for discounts in every transaction you will be dealing with. After all, there is no pain in asking about it. It might even help you save some money. 

Additional coverage includes protection from Acts of Nature like typhoons, earthquakes, fire, and other external explosion coverage. Roadside assistance would also be helpful. So, do not forget to ask for additional coverage. 



  • Contact the police
  • Keep your calm
  • Before you align your vehicle, make sure that the area is safe
  • Setup your Early Warning Device
  • Communicate with the other party, and do not forget to exchange both of your contact information
  • Take photos that would serve as your evidence 
  • Ask for your copy of the police report
  • Remember to not accept or approve anything in the scene of the incident. During that time, you might be in shock and might not be able to think well, so refrain from accepting anything to prevent further problems. 


  • Complete claim form
  • Photos you have taken from the incident
  • Police Report
  • Accredited repair shop’s estimate for repairs
  • A copy of your driver’s license and its receipt
  • Copy of your Motor Vehicle Registration Renewal (MVRR) Official Receipt
  • Certificate of Registration

NOTE: When you submit all the necessary documents, your insurer will give you a Letter of Authorization (LoA). Present the LoA to the accredited repair shop so they can start with the restoration of your vehicle.

It’s indeed helpful to have car insurance. If you plan to buy a car, make it insured. Don’t have enough money to get car insurance? Cash Mart can lend you a hand! Apply and enjoy a low-interest loan that may fit your needs!