2026 Guide to car insurance renewal: Coverage, tips, & costs

We are sure you have read it before, and it is good to know again that car ownership is no joke. It does not end with the purchase; the real responsibility begins once it is made. You need to act and drive responsibly and fulfil the insurance requirements (both mandatory and those required by law). Another aspect is to keep the insurance policy up to date and active. Later, you need to renew it on time.

If your insurance policy is on the verge of renewal, then this guide is a must-read. It is explicitly designed for Filipino car owners and renewal applicants seeking clear, simple, and practical advice. This guide serves both first-timers and those who have renewed the policy multiple times, as rules, prices, and coverage continue to change.

If your car insurance renewal is due in 2026, we’d advise against treating it as routine. Instead, take this opportunity to save money, improve protection, and avoid legal trouble. Go ahead and give this guide a thorough read, renew your policy with confidence, and enjoy the peace of mind you need.

So, let’s get started …

Car insurance: Understand the basics before renewal

Car insurance in the Philippines is intended to protect third parties, i.e., the public. But with the right mix of optional coverage, even the driver, passengers, and insured vehicle are covered. Before proceeding with the renewal process, ensure you understand the main types of car insurance coverage available.

Compulsory Third Party Liability (CTPL)

CTPL insurance is mandatory for all registered vehicles
LTO registration can not be renewed without an active CTPL policy
It covers third-party bodily injuries or death
Does not cover damage to the insured vehicle
It only protects other people involved in an accident caused by your car

Comprehensive insurance

It is optional but highly recommended
It offers broader protection, including coverage for vehicle damage, theft, AON, and personal accident.
Car owners mostly choose it for better financial stability.

Also Read: CTPL vs. Comprehensive Car Insurance: What’s the Difference?

Why car insurance renewal matters in 2026

Photo from Freepik

Renewing your car insurance on time is not just about compliance - it’s about adequate protection.

LTO registration & legal requirements

Without a valid car insurance policy, you will not be able to drive legally or even renew your LTO vehicle registration. An expired insurance policy leads to the following consequences -

Fines & penalties
Legal liability in case of accident
Delayed LTO registration

Financial protection & peace of mind

Insurance renewal ensures you are financially protected against unexpected events. This means the burden of medical bills, car repairs, and legal fees will not fall on you, keeping your peace of mind intact.

When should you renew your car insurance policy?

Policy renewal timeline

In the Philippines, most car insurance policies remain valid for a year. For the renewal timeline, it’s best to do so 1-2 weeks before policy expiry. Doing so will ensure continuous coverage and prevent policy lapses.

What if your policy lapses?

If your insurance policy lapses, you may lose your No Claim Discount (NCD). The new policy will be granted only after a proper vehicle inspection and at a higher premium.

Also Read: What happens when your policy expires? Renewal tips & reminders

Can insurance renewal: Step-by-step guide

Don’t worry, renewing your car insurance policy doesn’t have to be stressful, and with this guide, you’ll be able to do so without any delay or confusion.

Step 1: Check your policy’s expiry date
Start by reviewing your current insurance policy and note the exact expiry date.

Best practice: Renew your policy 7 to 14 days before it expires to avoid a lapse in coverage.

Step 2: Review your existing coverage
Before initiating the renewal process, scrutinise your current policy. Ask yourself the following questions -

Is my car’s insured value accurate?
Do I need all the add-ons?
Did I make any insurance claims last year?

Here are the key items to review in your policy-

This step will ensure you are neither underinsured nor overpaying for optional add-ons.

Step 3: Prepare required documents
Most providers ask for the following documents at the time of renewal -

Vehicle details (plate number, model, year)
Valid government-issued ID
Claim history
Copy of current insurance policy

If the policy has already expired, you may also need -

Vehicle inspection report
Recent car photos

Photo from Freepik

Step 4: Compare insurance providers

Renewal time is the most appropriate opportunity to compare insurance providers. It is a good idea to review other options before auto-renewing.

When comparing, consider the following parameters - premium cost, coverage benefits, claim process & turnaround time, customer support, and online reviews. After the comparison, you can renew with your current insurer or a different provider.

Step 5: Choose between online or agent-based renewal
Usually, there are two renewal options at your disposal - online or agent-based, both with their own set of pros.

Online renewal
Agent-based renewal
Fast & more convenient
Instant quotation
Ideal for straightforward renewals
Personalised advice
Helpful for first-time & complex renewals
Assistance during claims

Tip: Choose the option that best fits your comfort level.

Step 6: Confirm premium and apply discounts
Before paying, make sure to ask about the following -

Final premium amount
No-Claim Discounts
Loyalty or promotional discounts

Step 7: Make payment and secure your policy
Once you are satisfied, you can make a payment using the method that best suits you and your provider. The options generally include -

Bank transfer
E-wallet
Cash
Credit card

Next, request an official receipt and collect all policy documents. Note, most insurance providers issue digital copies within 24 to 48 hours.

Step 8: Review the policy annually
After a successful renewal procedure, save digital and printed copies of the policy. Also, set a reminder for your next renewal. We’d also recommend an annual policy review, as your policy may require adjustments.
Coverage options to review at the time of renewal

Acts of Nature (AON) coverage: The Philippines is one of the world’s most disaster-prone nations, experiencing around 20 typhoons annually, along with frequent earthquakes, volcanic eruptions, floods, and landslides. All this makes AON coverage essential for Filipino car owners.
Own damage & theft coverage: If your car is damaged in an accident (even if you are at fault) or due to fire, theft, or malicious acts, own-damage car insurance will cover repairs. As for theft coverage, it covers vehicle theft, carjacking, and theft of parts.
Personal accident coverage: This coverage provides crucial protection for medical expenses, disability, or the death of a driver or passenger resulting from a road accident.

Also Read: Top 10 must-have car insurance add-ons for Filipino drivers

Car insurance cost (2026 update)

Several factors affect car insurance premiums, some of which are listed below -

Vehicle age and model
Location
Driving history
Claim record

Average renewal cost in 2026
For most private cars, comprehensive insurance premiums range from 1.2% to 2.5%, depending on the car’s market value.

Photo from iStock

Car insurance renewal: Tips to save money

No-Claim Discount (NCD): If you didn’t file a claim last year, you become eligible for NCD and may receive up to a 20% to 30% discount on the premium.

Adjusting coverage to fit your needs: If you remove unnecessary add-ons from your policy and adapt deductibles, you would lower the cost without losing essential protection

Also Read: Top car insurance renewal FAQs in the Philippines

Common mistakes to avoid when renewing

Underinsuring your vehicle: Do not make the mistake of opting for a low Insured Declared Value (IDV) policy, as it may lower your annual premium but result in a lower payout for theft, total loss, or severe damage claims. Also, choosing an insurance policy that does not fully cover potential losses, damage, and medical expenses.

Ignoring policy terms & exclusions: Always read the fine print carefully to avoid surprises during a claim.

Also Read: New year, new coverage: Rethink your car insurance with ZenInsure

Bottom line

Renewing your car insurance policy doesn’t have to be either expensive or confusing. With the proper knowledge of coverage, costs, and common renewal mistakes, you can make an informed decision, save your hard-earned money, and stay protected. Remember, a smart renewal technique today would mean safe driving tomorrow.

A few key points to remember include: annual policy review, comparing options before renewal, and renewing on time.

Also Read: Must-have add-ons for 2026: What you shouldn’t miss

FAQs

Q1. Is CTPL coverage insurance sufficient for car owners?
Ans. No, CTPL insurance provides only third-party coverage. Comprehensive insurance is essential for protecting you and your vehicle.

Q2. Why is timely car insurance essential, and can it be missed without consequences?
Ans. Timely car insurance renewal is essential to avoid penalties and legal issues. It also ensures continuous protection and helps maintain a no-claim discount.

Q3.How early should I renew my policy?
Ans. It is recommended to renew your policy 1 to 2 weeks before the expiry date, giving you enough time to review your existing policy and compare offers.

Q4. How can I reduce my premium at renewal?
Ans. You can do so by maintaining a clean driving record, reviewing your coverage annually, and claiming your no-claim discount.

Q5. Can I switch my insurance provider during renewal?
Ans. Yes, you can. In fact, renewal is the best time to reassess your provider and coverage.

Also Read: Early renewal vs. Last-minute renewal: Which is better for Filipino drivers?