Thinking of insuring your old car in the Philippines? Here's all you need to know

For many car owners in the country, holding on to their old, beloved vehicle is common. Equally important is keeping it safe, and for that, they need to spend money on maintenance, practice defensive driving, and opt for an effective insurance policy.

It doesn’t matter if it is your very first car, a well-maintained second-hand ride, or a trusted family vehicle; keeping it insured is essential. However, insuring an older car can be confusing for many. The problem increases when providers treat aged units differently. To help you understand things better, our focus is on old car insurance - including what counts as an old car by providers, common insurance myths, and much more.

When is a car considered ‘OLD’ by insurance providers

Usually, a car is considered old when it is 10 years old or more. Some insurance providers in the Philippines even place limits on the availability of comprehensive insurance packages once a car reaches a specific age. This doesn’t mean you can not insure your old, beloved car - it simply means that the approval process will take longer and will be a little more effort.

Importance of old car insurance

Does old car insurance matter? Yes, because even if your car is ageing, insurance still remains important. Here’s why -

Protection against financial loss: Old cars have lower market value than new units; however, they still require repairs, which is an economic liability. Therefore, with insurance by your side, you get coverage against expensive repairs after accidents, damage caused by natural calamities, and third-party liability (bodily injury, death, or property damage) after an accident.

Meeting legal requirements: Whether your car is old or new, CTPL is required. Every motor vehicle in the Philippines must have CTPL insurance to obtain an LTO vehicle registration.

Furthermore, it is illegal to drive an unregistered vehicle, leading to penalties and fines.

Photo from Freepik

Insurance options for old cars

It is a fact that your car’s age affects the type of insurance you can choose. The list includes -

Compulsory Third Party Liability (CTPL) insurance: CTPL is the mandatory insurance that is required by all motor vehicles - new, old, or used. As for coverage, it only offers protection against third-party bodily injury or death; no coverage for you or your vehicle.

Comprehensive insurance: Car owners prefer this plan for its broader protection. It typically includes coverage for fire, theft, damage from accidents, or collisions. Some providers also offer financial assistance for natural disasters and vandalism.

Is comprehensive coverage recommended for old cars?

Comprehensive coverage must be opted for if your car is driven daily and well-maintained. Furthermore, check the availability of parts and whether the location is flood- or accident-prone; if so, this plan is recommended.
Insurance premiums for old cars

Like the premium for new cars depends on several factors, so does the premium for old units. Some common factors include -

Car’s age	Older cars have lower market value, leading to lower coverage limits and lower premiums. However, if the provider suspects high risk, the cost may be high.
Part availability	If the model has rare or expensive parts, the premium may be high.
Repair cost	High repair costs translate into a higher premium.
Usage, maintenance, & condition	A well-maintained car in good condition may qualify for comprehensive coverage, which adds to the premium.

Common myths about old car insurance

Here are some misconceptions Filipino car owners believe -

Myth 1: CTPL insurance is enough for old cars
Reality: Not necessary, as CTPL insurance offers limited coverage with no protection for you and your vehicle.

Myth 2: Comprehensive insurance is not available for old cars
Reality: That is not true, as comprehensive insurance is available - it might have some limitations, and the approval process might take a little longer than usual.

Myth 3: Old car insurance is expensive
Reality: Not necessarily, as car insurance cost depends on multiple factors and not on age alone.

Myth 4: An Old car insurance application usually gets denied
Reality: Many insurance providers in the country accept older car insurance applications after following specific guidelines.

Also Read: Top 8 defensive driving tips for Filipino drivers to stay safe and save on insurance

Step-by-step guide to insure an old car

Requirements

When insuring your old car, you need to gather essential documents; some providers might also require a vehicle inspection and assessment. The necessary documents include -

- Vehicle OR/CR
- Valid government ID
- Driver’s license
- Physical inspection (photos, condition report)

Process

Now, let's move on to the step-by-step process -

Step 1: Evaluate the vehicle’s value
You can do this by checking online valuation tools, reviewing the dealer’s resale price list, and comparing listings.

Step 2: Review coverage options
While CTPL insurance is a must, choose a comprehensive plan based on your budget, car’s condition, and usage.

Step 3: Choose a provider and submit the required paperwork
Make sure to go with a provider that is accredited by the IC (Insurance Comission) and offers features such as customer support and an easy claim process. After that, fill out the application and submit the required documents.

Step 4: Final evaluation
Once your application is thoroughly analysed and approved, you need to pay the premium.

Also Read: Should you get car insurance from your bank, dealer, or a broker? Here’s the answer!

Tips to choose insurance for your old car

To choose the best insurance for your old but beloved ride, we have a few suggestions, including -

Compare insurance providers: Before settling on a provider, make it a point to compare two to three insurers based on premium, claim service, policy inclusions, customer reviews, deductibles, etc.

Evaluate inclusions & exclusions: When selecting an insurance plan, make sure to compare policies based on coverage and exclusions. Look for inclusions like Acts of God, roadside assistance, and personal accident coverage.

As for exclusions, they should be reasonable, and the participation fee must be sensible as well.

Also Read: What you might not know about the car insurance participation fee

How to reduce the cost of old car insurance cost

Here are some tips to minimise insurance costs -

Install anti-theft device: Devices like alarms, sensors, etc, lower accident risk and lower premium cost.

Regular maintenance: A well-maintained car, whether 10 years old, gets faster approval and enjoys a lower premium.

Go for low deductibles: Going for high deductibles surely lowers the premium, but you’ll end up making a high out-of-pocket payment before settlement.

Old car insurance: Common problems & solutions

Problem 1: Old car insurance application declined
Solution: If an insurance company denies your insurance application, you can go for another provider, try to improve your car’s condition, or provide inspection & maintenance records.

Problem 2: High premium
Solution: If the premium is way too high, you can reduce it by removing unnecessary add-ons, adjusting your coverage, or improving the vehicle’s safety features.

Bottom line

If you own an old car, remember it is essential to keep it well-maintained and insure it with the most appropriate coverage. It is a common notion among Filipino drivers that old car insurance is complicated and expensive. But that is not the case; with the right knowledge and proper preparation, the process feels easy and affordable. When it comes to coverage for old units, the key is to understand your options and compare providers & policies.