Car ownership continues to grow in the country, as more Filipinos buy vehicles for work, family use, and daily commuting. However, the country's unpredictable weather conditions, traffic congestion, and rising repair costs make car insurance more important than ever.
In this 2025 review guide, we have shed light on how the local insurance market has evolved and what it means for car owners. Remember, insurance is no longer just a legal requirement but a smart financial safety net.
Car ownership in the Philippines - The growth
Over the past year, more Filipinos have been encouraged to own vehicles, thanks to affordable car models, flexible financing, and ride-sharing options. As a result, the number of insured cars has also increased. This has led insurance companies to improve services, offer competitive pricing, and adopt digital tools.
Why does car insurance matter?
In the Philippines, accidents, floods, and typhoons are frequent, and without insurance, car repairs can cost thousands of pesos. Here, car insurance helps you save, ensure peace of mind, and stay legally compliant.
Also Read: The rights of a car insurance policyholder in the Philippines
Major car insurance trends (in 2025)
In 2025, the car insurance industry saw notable changes, all focused on enhancing speed, convenience, and the customer experience.
Digital insurance & online purchase
More and more car insurance providers allow car owners to buy, renew, and manage policies online. This will enable you to compare plans, upload documents, receive policies and renewal updates via email. All this will save time and money.
Usage-based & telematics insurance
Some insurance providers have now introduced usage-based insurance, in which premiums depend on a car owner's driving behaviour. For instance, drivers who drive less or follow traffic rules enjoy low premiums.
Rising demand for comprehensive coverage
Due to frequent floods and typhoons, more car owners are opting for comprehensive insurance over basic CTPL coverage. Plans for Acts of God, theft, and vandalism have become a priority.
Faster claims via mobile apps
Insurance companies have improved the claim process, all thanks to digitalisation. This allows car owners to complete many tasks from the comfort of their home/office, such as submitting photos, tracking claim status, and making premium payments.
Also Read: Should you get car insurance from your bank, dealer, or a broker? Here’s the answer!
Government rules & car insurance
Photo from FreepikThe government continues to enforce strict insurance rules to protect car owners, motorists, and pedestrians.
Mandatory third-party liability
Third-Party Liability insurance is required when registering a vehicle with the LTO. This plan covers third-party bodily injuries or death resulting from an accident. However, it does not cover damage to your own car.
LTO and insurance compliance
In 2025, the LTO strengthened its digital verification system to prevent the issuance of fraudulent insurance policies. Car owners must ensure their policy is from an accredited provider listed on the Insurance Commission (IC) website.
Most popular types of car insurance plans in 2025
Understanding your insurance options helps you choose the right coverage for your needs. In the year 2025, the following coverages were most adopted -
Compulsory Third-Party Liability: CTPL insurance is the most basic form of insurance. It is affordable but limited in coverage, which makes it suitable for compliance purposes.
Comprehensive insurance: This coverage offers wider protection, including own damage, theft, fire, and third-party property damage.
Acts of God: This add-on covers damage from natural disasters, including floods, earthquakes, and typhoons, all of which are common risks in the Philippines. Given the climatic conditions, this coverage is highly recommended.
Also Read: Insuring a hybrid or plug-in car: What you should know before buying one
Smart car insurance tips for car owners (for the upcoming year)
Photo from FreepikRemember, being informed helps car owners to save money and avoid problems.
How to choose the right insurance provider?
Look for the following attributes -
- The Insurance Commission must accredit the provider
- Good customer reviews
- Easy and fast claim process
- Clear policy terms
Don’t choose a policy based on price alone; consider the factors mentioned above as well.
Ways to lower premiums
You can lower the car insurance premium by -
- Installing an anti-theft device
- Maintaining a clean driving record
- Building insurance policies
- Opting for higher deductibles
Common mistakes to avoid
- Failing to read policy exclusions
- Forgetting the renewal date
- Not reviewing the policy yearly
- Not asking questions
Also Read: What you might not know about the car insurance participation fee
Car insurance checklist for Filipinos (for the upcoming year)
Photo from FreepikHere is a simple checklist to help ensure you are always prepared when applying for car insurance.
Be ready with these documents -
- Valid driver’s license
- Vehicle OR/CR
- Insurance policy copy
Annual renewal & policy review checklist -
- Coverage limits
- Review add-ons
- Compare premiums
- Update personal information
Note, following these checklists will help prevent delays and denied claims.
Bottom lines
Car insurance in the country continues to evolve, with a focus on digital access, convenience, and improved coverage. This 2025 review about top insurance trends, tips, and checklists will help you make smart insurance decisions. Remember, by choosing the right policy, following simple tips, and using a yearly checklist, you can protect your vehicle, finances, and enjoy the drive, not just in 2025-2026, but for years to come.
Also Read: Personal Accident Coverage for riders in the Philippines: Why it matters
FAQs
Q1. Is car insurance required in the Philippines?
Ans. Yes, a car owner should at least get third-party insurance for vehicle registration.
Q2. What is the best car insurance coverage for Filipino car owners?
Ans. Comprehensive insurance is the best and most recommended option, as it provides complete coverage for the owners. It includes protection against theft, accidents, fire, vandalism, and floods.
Q3. Can car insurance be bought online in the Philippines?
Ans. Yes, most car insurance providers offer online policy purchasing and renewal facilities.
Q4. Does car insurance cover floods?
Ans. Yes, but only if your car insurance coverage includes an Acts of God plan.
Q5. How long does car insurance claim processing take?
Ans. With digital tools, simple claims can be processed within 7 to 14 days or even quicker.
Q6. Can I switch insurance providers anytime?
Ans. Yes, you can switch your insurance provider anytime - mid-term and even at the time of policy renewal.
Q7. Is CTPL insurance enough for daily driving?
Ans. No, CTPL insurance is not sufficient for daily driving, as it does not cover damage to your own vehicle.
Q8. What happens if I drive without car insurance?
Ans. Driving without insurance may result in penalties and fines, and may also lead to insurance issues with the LTO.
Q9. Are older cars more expensive to insure?
Ans. Yes, older cars are generally more expensive to insure due to higher repair costs and limited parts availability.
Also Read: Thinking of insuring your old car in the Philippines? Here's all you need to know
