How to get car insurance in the Philippines: A step-by-step guide

If you are reading this article, we suspect you are a new car owner who wants to get his/her new ride insured. Is that right? If yes, you are at the right place because here we’ll be sharing everything about car insurance and how to get your car insured in the Philippines. However, if you believe car insurance is nothing but a formality that can be skipped altogether, or a bare minimum requirement for getting your car registered with the LTO, we want to give you a reality check. First of all, car insurance is mandatory in the Philippines. Every car owner needs Compulsory Third Party Liability (CTPL) insurance to get LTO registration. But is that all we need insurance for? Absolutely, NO. There is so much more to car insurance, let alone CTPL. For instance, with CTPL by your side, you don’t need to worry about third-party injury or death expenses resulting from an accident involving your car. The entire financial burden involving the third party falls on the CTPL policy. Great, isn’t it? No worry, no stress. Similarly, if you take a step further and opt for the non-compulsory comprehensive car insurance, you’ll enjoy more benefits. Yes, you'll have to give more premium, but the number of benefits it offers, you’ll feel well compensated. For instance, comprehensive car insurance provides financial assistance under the following scenarios -

Accidental or collision damage to the vehicle
Damage to the vehicle due to floods, earthquakes, typhoons, and other natural calamities
Damage due to fire and theft
Damage to the vehicle due to malicious activities like riots, vandalism, etc

In addition, a comprehensive insurance package also includes personal accident coverage that covers medical and hospital bills concerning you and your passengers in the event of an unfortunate accident involving your car. Furthermore, some insurance providers in the country offer third-party property damage coverage, wherein compensation is provided to the third party for damage to their property caused by the insured vehicle. Time for icing on the cake, i.e., Add-Ons, that are there to strengthen your car insurance policy further. Some popular ones being - Acts of God, Loss of Use, Engine Protection, Zero Depreciation, to name a few. We hope, by now, those of you thinking of skipping car insurance have dropped the idea to do so and are on the lookout for a genuine insurance provider offering a good package. But before that, there are a few key steps that need to be followed (after that as well), eventually leading you to a car insurance policy best suited for your needs. Continue reading and explore the step-by-step guide to securing a car insurance policy in the Philippines.

How to secure a car insurance policy?

Step 1. Analyse your requirements This is one of the most underestimated steps in the whole process. Insurance seekers often avoid this suggestion and directly jump to the next, i.e., deciding the coverage. But here’s the catch: you can only pick the products efficiently if you know whether they are required or not. So, how to analyse your insurance needs? The answer is to introspect and ask yourself these questions: How old is the vehicle? How often do you drive? Where do you usually park? Which route do you often take? How much monthly expense can you afford on a car insurance premium? Where do you live? Answers to all these questions will help guide you in the direction your insurance policy should take. For instance, if you live in or park in an area that’s prone to car theft or drive through an area where the frequency of accidents is high, you need an insurance policy that covers your expenses. Step 2. CTPL, Comprehensive, or both In our previous article, we discussed CTPL and a comprehensive insurance policy and their differences in detail. In case you have missed it, here’s a brief -

Scenario	Go with CTPL	Go with Comprehensive
Old car	Recommended	Can be skipped
New car	Required for LTO registration	Highly recommended
Tight budget	Recommended	Can be skipped
Risk of accident, theft, flood, etc.)	Required for LTO registration	Highly recommended

Anyway, CTPL can not be skipped; it is required for both car registration and its renewal. Also, if you have the budget, we’d say go with comprehensive car insurance. The latter offers coverage against a wide range of risks, which no one knows when they will hit you or your car.

Photo from BOI

Step 3. Time to select an insurance provider Now that you know your needs and have decided upon the insurance policy to pick, it is time to select an insurance provider. In the Philippines, there are several operators in the insurance field claiming to offer the best service. However, we’d suggest you go with the one that offers good customer service, a fast claim process, and a high approval rate. Some of the top names in the business are -

Malayan Insurance
FPG Insurance
AXA Philippines
Standard Insurance
Pioneer
Etiqa
Oona Insurance
SGI Philippines

Step 4. Get and compare quotes Gone are the old days when an insurance seeker was required to visit an insurance provider’s office in person to get quotations. Now, with changing times and improved technology, you can get quotes from multiple providers from the comfort of your home. However, make sure to gather all essential documents before requesting a quote, as providers often seek information to provide accurate information. The list of documents includes vehicle details, driver’s license, CR, and previous insurance information (if any). The process involves visiting the insurance provider's website, filling necessary info, and submitting contact info. Now just wait for the quote, which typically includes premium, coverage, and optional add-ons, and compare it with others. Here, we’d also recommend using comparison tools that will collect and compare quotes from different websites based on the information provided. Step 5. Check the policy inclusions and exclusions After comparing the quotes, it's time to inspect the shortlisted policies based on inclusions and exclusions. Now there are a few inclusions as per us which we think a policy should have, like coverage against fire, theft, acts of god, flood, third-party property damage, personal accident, legal assistance, and passenger coverage. Anything other than that is to your advantage. As for exclusions, a car insurance policy often does not cover damages resulting from normal wear and tear, illegal activities, unauthorized drivers, fraudulent claims, or driving under the influence. Step 6. Premium and payment The only thing left now is to get a proper understanding of the premium and payment options. Here we’d advise you to sit with your insurance agent and get full knowledge on the subject. For instance, the premium is based on several factors like the car's cost/value, driver’s history and age, safety features, deductible, credit history, claim frequency, add-ons, etc. As for payment options, your agent will educate you on the different options. However, we’d advise you to look for a 0% instalment plan and also remember to ask about pre-payment fine, and discounts. Step 7. Fill up the application Once you are convinced about every detail from policy inclusion, exclusion, and payment details, it is time to fill out the application form. These days, insurance providers also provide the option of an online application process, which is easy, quick, and convenient. At this stage, you’ll need several documents along with a duly accomplished application form, including a valid government ID, a copy of OR/CR, a driver’s license, etc. Step 8. Sign the contract and make the payment Your insurance provider will now provide you with a car insurance contract/agreement, which you are required to review thoroughly before signing. Next up, time to make the payment, which can be done via several means including - ATM banking, bank deposit, over-the-counter payment, credit card, online banking, GCash, credit card, mobile banking, and payment apps. Here, make sure to confirm the payment details before pressing the send button, followed by asking for an official receipt, which is essential for official records. Step 9. Collect your car insurance policy It is now time to get your car insurance policy along with a Certificate of Cover (COC). Upon receiving, make copies and keep the original document safe. Now, you can head to the LTO to get your car registered and also make regular premium payments to fetch the benefits when needed.

Photo from Freepik

Car insurance in the Philippines - Mistakes to avoid

Do not overpay for car insurance. This can be avoided by skipping unnecessary coverage.
Make sure to read the contract properly to avoid last-minute surprises.
Do not make the mistake of choosing the cheapest option; it might cost you more in the long term.
Never miss out on monthly premium payments, as it can leave you uninsured.

Car insurance in the Philippines - How to renew

Did you know that most car insurance policies in the Philippines last for a year, meaning they become due after every 12 months. In case you don’t remember the renewal date, just check the contract for the plan's effective date of commencement and calculate 12 months from there, and there you have the renewal date. How to renew? Here’s how -

Contact your insurance provider a few days ahead of the policy expiry.
Review the policy and assess the coverage; no need to stick to the same coverage as before.
See if you want to change the deductible.
Decide whether you want to continue or switch your car insurance provider.
Get and compare car insurance quotes from different providers.
Choose the best car insurance policy.
Provide necessary details and pay for the car insurance renewal
Review the policy papers.

Bottom line Getting your car insured might seem like a tedious task, but believe us, it’s all worth it and hundreds of times better than dealing with the aftermath of an accident that is uninsured. Just follow the above-mentioned steps and get your car insured without any second thoughts. FAQs Is getting CTPL insurance enough? CTPL Insurance only covers third-party injuries/death; therefore, it is recommended to get comprehensive car insurance for better protection. Can I get my car insured online, without visiting a car insurance provider's office? Yes, most providers in the Philippines these days offer online applications, e-payments facility, and instant policy delivery. What will happen if I miss my monthly premium payment? If you default your premium payment on the due date, during the grace period, or even after that, it would lead to the lapse of the car insurance policy.