In recent times, buyers have been adopting hybrid and plug-in cars. This trend is not limited to Western countries; the Asian market has also witnessed a rise in demand in this particular auto sector. One of the key reasons for the shift is the rise in fuel prices and growing environmental awareness. Now, while the benefits of owning a hybrid car are well known—like reduced emissions and improved fuel efficiency—the aspect that many potential buyers overlook is the insurance for these cars.
In the Philippines, insuring hybrid or plug-in hybrid cars involves unique considerations, such as high repair costs and the need for specialised parts. It is therefore recommended to properly understand what to expect from such motor vehicles and their insurance - to save your time, money, and stress down the road.
Let’s get started and understand all about hybrid & plug-in cars insurance
Car insurance in the Philippines: Going through the basics
Before diving into the specifics of hybrid and plug-in cars insurance, it is a good idea to have a clear understanding of how car insurance works in the country. Here are a few key points about car insurance -
- Every vehicle owner legally requires car insurance; CTPL insurance is a must.
- LTO requires CTPL insurance for vehicle registration and registration renewal. As for coverage, it covers third-party injury or death resulting from an accident caused by the insured vehicle.
- Comprehensive insurance is not required by law, but highly recommended for its broad spectrum of coverage against theft, fire, floods, vandalism, and collision.
- Car insurance premiums depend on several factors, including the car’s market value, age of the vehicle, location, and driver’s record.
- Aside from CTPL and comprehensive coverage, car owners can customise their policy with add-ons such as Acts of God, roadside assistance, personal accident coverage, and loss of use.
Hybrid & Plug-in hybrid car - What’s the difference?
Let us first talk about hybrid cars—they run on both fuel and electricity but don’t require being plugged in. Plug-in hybrid or electric vehicles, on the other hand, need to be charged via an electric outlet. Also, the latter can travel farther on electricity alone than hybrid units and uses more expensive components.
Insuring hybrid & plug-in cars
Like conventional cars, hybrid and electric cars must be insured, with CTPL as the minimum requirement. However, compared to regular vehicles with internal combustion engines, their electric counterparts use a combination of traditional mills and advanced electrical systems, which affects insurance providers' risk assessments and leads to insurance premiums that differ significantly between regular and hybrid/electric cars.
Special considerations when insuring a hybrid & plug-in car
Here are the key considerations to note when insuring a hybrid or electric vehicle -
- Limited availability of certified repair centres: In the Philippines, there are only a handful of accredited workshops that are equipped to handle hybrid or EV repairs. This often leads to high labour costs and long repair times.
- Specialised coverage requirements: Hybrid and electric vehicles are loaded with cutting-edge components, such as sensors and onboard digital systems. It is therefore advisable to confirm if your insurance policy covers specialised parts and electrical damage.
Photo from FreepikRecommended car insurance coverage for hybrids & EVs
The list of coverage that a hybrid or plug-in car owner is recommended to opt for includes -
CTPL insurance: Covers bodily injuries or death, but does not cover damage to your hybrid or EV.
Comprehensive insurance: Highly recommended for electric cars due to their high repair cost and sophisticated components. It covers a wide range of risks, including accidents, fire, theft, vandalism, etc.
Acts of God coverage: Essential for Filipinos due to the high frequency of floods and typhoons. You see, EV batteries and electric components are susceptible to water damage, making AOG non-negotiable.
Also Read: Top 5 myths about Acts of God insurance coverage (Busted!)
Battery & Electric Component coverage: This coverage is critical for hybrids and plug-ins, as these components are costly and can cost thousands of pesos to replace. Note that not all insurers include such coverage automatically, so request it as an add-on to your policy.
Roadside assistance & towing: It is highly recommended for EV owners because of charging limitations and specialised vehicle systems. Make sure your insurance partner offers trained EV towing service, as EVs require special handling.
Other recommended coverage includes Loss of Use, Personal Accident, Accessories & Modifications, Third-Party Property Damage, and Theft & Vandalism.
Common misconception about hybrid/electric vehicle insurance
It is a common misconception that hybrid or electric car insurance costs less because of lower emissions or a smaller or no engine. But that is not the case, as these cars use advanced technologies like lithium-ion batteries and regenerative braking systems—which, if damaged, could lead to expensive repairs—ultimately influencing the overall insurance cost.
Factors influencing hybrid & plug-in cars' insurance premiums
As mentioned above, several factors influence a car’s premium cost, including hybrid and electric cars. Let us now discuss a few of these factors in detail -
Vehicle’s value & repair cost: Compared to conventional cars, hybrid and electric cars cost more upfront and have higher parts and repair costs. This increases the insured declared value (IDV), which directly affects the premium.
| What is Insured Declared Value? It is the maximum amount the insurance provider will pay if your vehicle is damaged or stolen. |
Driving habits & location: The insurance premium is influenced by car owners' driving habits and location. For instance, if you live in an accident-prone, flood-prone area, or frequently drive long distances, your profile becomes riskier and results in a higher premium.
Maintenance and battery replacement: The battery pack is one of the most costly components of a hybrid or plug-in vehicle. Their high replacement cost impacts the premium calculation.
Tips to lower the insurance premiums for hybrid or plug-in cars
Tip 1: Ask for green vehicle discounts
Some insurance providers offer discounts to drivers with hybrid or electric cars. It is a reward for their eco-friendly way of living. Though it is not a common or standard reward, it is always a good idea to ask.
Tip 2: Bundle policies
If you have multiple vehicles at home, then insure them all under the same provider. Also, you can combine your home, health, and other insurance policies to reduce costs.
Tip 3: Maintain a clean record
Keeping a spotless driving record builds trust with the provider and helps secure better rates.
Photo from FreepikFiling an insurance claim for your hybrid or plug-in car
Let us now discuss the step-by-step process to file a claim -
Step 1: Notify the insurer immediately after the incident.
Step 2: Contact the local authorities and get a police report if required.
Step 3: Take photos or a video of the damage from multiple angles.
Step 4: Gather all the necessary documentation for filing a claim. Usually, the list includes an insurance policy, vehicle OR/CR, and a driver’s license.
Step 5: Co-operate with the insurance adjuster and get repair estimates.
Step 6: Duly completed the claim form and all required documents.
Step 7: Wait for claim approval and settlement amount.
Mistakes to avoid
- Avoid delaying filing a claim
- Modifying your car without notifying your insurer
- Filing to document damages
How to choose the right provider for your hybrid or plug-in vehicle
While selecting an insurance provider, you must compare and look for the following attributes -
- Strong reputation and certified by the Insurance Commission
- Reliable customer support, preferably 24/7 service
- Fast claim processing
- Availability of digital services like online claim filing, policy renewal, and others
- Affordable premium with flexible payment options
- Add-ons tailored to your needs, including battery and electrical systems, charging system components, and coverage for onboard electronics & sensors.
- Check the provider's availability of certified EV repair centres.
Where to get hybrid or EV insurance in the Philippines
Here are some of the top EV-friendly insurance providers -
- AXA Philippines
- Malayan Insurance
- MAPFRE Insurance
- Standard Insurance
Also Read: Top 8 defensive driving tips for Filipino drivers to stay safe and save on insurance
Bottom line
Owning a hybrid or plug-in vehicle is a responsible decision. Yet, safeguarding this forward-thinking investment is just as important. Given the potential for high repair costs, specialised parts, and fewer service centres, comprehensive coverage offers peace of mind during every trip.
When selecting insurance for your eco-friendly ride, it's crucial to compare providers, inquire about eco-vehicle discounts, and review the coverage details. This approach not only ensures proper protection but also supports sustainable driving habits.
FAQs
Q1. Is hybrid car insurance more costly than standard car insurance?
Ans: Yes, slightly. Higher repair costs and advanced technology in hybrids often lead to higher premiums.
Q2. Can I get a premium discount for owning an eco-friendly car?
Ans. Not necessarily, but it is advisable to ask for a green discount as some providers reward hybrid and EV owners.
Q3. Does CTPL insurance cover damage to hybrid cars?
And. No. CTPL insurance only covers third-party bodily injuries or death. Vehicle damages are not covered.
Q4. Will insurance cover my hybrid car's battery if it's damaged in the flood?
Ans. Yes, comprehensive insurance typically covers flood damage. Just make sure your policy includes Acts of God coverage either as an add-on or as part of a comprehensive policy.
Q5. Which insurance providers offer hybrid insurance in the Philippines?
Ans. Several well-reputed insurance providers offer hybrid insurance, including AXA, Standard, MAPFRE, and Malayan Insurance.
Q6. Is comprehensive insurance mandatory for hybrid cars?
Ans. No, comprehensive insurance is not legally required, but it is highly recommended given the cost of hybrid car parts and repairs.
Q7. What documents are required for filing hybrid car insurance claims?
Ans. Documents required for filing a claim include - a policy copy, vehicle OR/CR, photos of damage, driver’s license, and police report.
Q8. Does insurance cover battery degradation?
Ans. No, normal wear and tear is not usually covered under insurance.
Q9. How can a car lower my hybrid car insurance premium?
Ans. You can lower your car insurance premium by maintaining a clean driving record, bundling policies, and claiming No Claim Bonus.
Q10. Can I get my EV repaired at any service centre?
Ans. It is recommended that you have your car serviced only at a certified EV service centre.
Also Read: Should you get car insurance from your bank, dealer, or a broker? Here’s the answer!
