Top 10 questions to ask before buying commercial vehicle insurance in 2026 - A smart guide for Filipino Business owners

Commercial vehicle insurance: Clearing the basics

Commercial vehicle insurance is designed to safeguard commercial vehicles. It is worth noting that it differs from private car insurance, as it accounts for risks specific to commercial vehicles, their drivers, and the items they carry (passengers, goods, and equipment).

What counts as a commercial vehicle in the Philippines?

Commercial vehicles in the Philippines typically include the following -

• Delivery bikes, vans, and trucks
• Vehicles carry cargo and logistics
• Company vehicles used by employees
• Public utility and transport vehicles
• Service vehicles

Tip: If your vehicle helps you generate revenue or support daily business operations, it needs more than private car insurance. Go for commercial vehicle insurance instead.

Importance of commercial vehicle insurance - Legal & financial need

National law requires every vehicle to have Compulsory Third Party Liability (CTPL) insurance. However, CTPL alone is not enough - it is a prerequisite for LTO vehicle registration and offers third-party coverage against bodily injuries or death. For all other unfortunate events, such as accidents, theft, fire, flood, or vandalism, additional coverage is required to help businesses avoid sudden, massive expenses that could hurt cash flow.

Top 10 questions to ask when buying commercial vehicle insurance

Now that the importance of commercial vehicle insurance is clear, it is time to go through the questions to ask before purchasing a policy.

Q1. What type of commercial vehicle insurance should I opt for?

Ans. This is the first and most essential question to ask before buying commercial vehicle insurance. Here is a broad view of the types of commercial vehicle insurance -

Compulsory Third Party Liability (CTPL): CTPL insurance covers bodily injuries or death of a third party. It is required for vehicle registration.
Comprehensive coverage: A step ahead of CTPL insurance, it covers vehicle damage from accidents, theft, vandalism, and even third-party property damage.

Also Read: Don't panic after an accident — Here's how to file a comprehensive claim

CTPL vs. comprehensive insurance coverage

CTPL insurance is cheaper but offers limited coverage and less protection. For most businesses, comprehensive coverage is essential and a safer option.

Q2. Is every insurance policy okay for my business-specific vehicle usage?

Ans. Not necessary; not all policies are the same. Exclusions must be considered, as they differ from provider to provider.

It doesn’t matter what the nature of your business is - delivery, transportation, service, or ride-hailing- it is a must to declare the usage of your vehicle. For instance, a delivery van used nationwide faces different risks than service vehicles used within the city.

Note that incorrect declarations of vehicle usage can lead to the denial of the insurance claim by the provider.

Q3. Are drivers covered under a commercial vehicle insurance policy?

Ans. Businesses often hire drivers to operate vehicles used for business operations. Thus, making the safety and security of drivers an essential inclusion in a commercial vehicle insurance policy.

Named drivers vs. authorised drivers

Some commercial insurance policies cover only named drivers, while others allow any licensed employee. So, if you are a business with rotating drivers, a flexible driver coverage policy is the more practical choice.

Q4. What are my policy coverage limits and exclusions?

Ans. It is essential to know your commercial insurance policies' coverage limits and exclusions. This knowledge can be acquired easily by reading the policy fine print, while going through the paperwork, make sure to check the following -

• Deductibles
• Maximum claim amounts
• Exclusions (like unauthorised vehicle usage, overloading, and unlicensed drivers)

Note that knowing the policy limits helps avoid unwelcome surprises during the claim process.

Also Read: Why every truck business needs Comprehensive Truck Insurance in the Philippines

Q5. What is the cost of commercial vehicle insurance, and what factors affect the premium?

Ans. Commercial vehicle insurance costs vary widely, and the factors that influence it include -

• Vehicle’s age and market value
• Location (flood-prone areas cost more)
• Business nature
• Intensity of vehicle usage
• Claim history

Note that while buying a policy, make sure to balance affordability and coverage.

Q6. Does commercial vehicle insurance include damage due to accidents, theft, and natural disasters?

Ans. A basic commercial vehicle policy, i.e., CTPL insurance, does not provide coverage for the vehicle or the driver. With the right comprehensive coverage plan, you can protect your commercial vehicle fleet against damage due to accidents and theft.

For natural disasters such as floods, earthquakes, and typhoons, Acts of Nature (AON) coverage is essential. Depending on the policy, it may be part of the comprehensive plan or offered as an add-on.

Note that it is essential to inquire about the coverage inclusion from the provider. If you operate from a flood-prone area, AON is highly recommended.

Q7. Is the commercial vehicle insurance claim process complicated?

Ans. A good insurance policy is useless if the claim process is complicated. When buying a policy, make sure to inquire about the claim turnaround time. Make sure to ask the provider the following questions -

• How long does the claim process take?
• What documents are required for the claim process?
• What is the provision of the online claim process or tracking?

Note that it is advisable to choose a provider known for fast, fair claim processing.

Q8. Are commercial vehicle repairs cashless, and where can I get them done?

Ans. The answer to this question varies; some insurers offer cashless repairs at accredited shops and dealerships. This provision reduces policyholders' out-of-pocket expenses and business downtime.

Also Read: Roadside Assistance in the Philippines: What it covers and why you need it

Q9. Can I customise or add drivers to my commercial vehicle policy?

Ans. Yes, insurance providers allow clients to customise their policies, making them more effective. You can also add or remove drivers from the policy.

Here are some common and recommended add-ons for commercial vehicles -

• Acts of Nature
• Passenger liability
• Personal accident coverage
• Towing and roadside assistance

Note that it is suggested to choose add-ons based on actual business risks.

Q10. How can I tell if an insurance provider is reliable and regulated?

Ans. Trust matters; it is essential to make sure that the provider you choose is trustworthy. Always go with a provider accredited by the Insurance Commission (IC). Furthermore, ensure the provider is financially stable and provides excellent customer service.

Common mistakes commercial vehicle owners should avoid

Choosing the cheapest available policy without considering the coverage-

• Ignoring exclusions
• Not adding disaster coverage
• Under-declaring vehicles usage
• Not updating policy details

Note that avoiding the above-mentioned mistakes will help you save money and stress.

Practical tips to choose the best commercial vehicle insurance policy (in 2026)

• Compare at least two to three providers.
• Ask for detailed quotations (directly from the provider/agent/third-party platforms).
• Review claim reputation.
• Reassess insurance policy annually.
• Match coverage to business needs.
• Go through online customer reviews.

Note that being proactive helps protect your investment.

Bottom line

If you are a business owner, you have undoubtedly experienced the growing risks that make buying commercial vehicle insurance a must. If you are buying insurance in 2026, it is essential to ask a few essential questions to make an informed, confident decision.

Remember, with the right insurance policy, you not only protect your vehicle but also safeguard your income, your employees, and your long-term business stability. All you need to do is get a complete understanding of insurance coverage, the claim process, and the provider’s reliability. Doing so will help you set your business up for a safe and successful operational year ahead.

Also Read: Truck/Commercial Vehicle Insurance 101: What Filipino business owners need to know

FAQ

Q1. Is it possible to insure multiple vehicles under one commercial vehicle insurance policy?
Ans. Yes, providers offer fleet insurance for business owners with multiple vehicles.

Q2. Does a commercial vehicle insurance policy cover flood damage?
Ans. Yes, but only if the policy includes Acts of God coverage.

Q3. Can I change insurance coverage mid-term?
Ans. Yes, but doing so may significantly increase your premium.

Q4. What happens if I miss an insurance premium payment?
Ans. Missing a premium payment can lead to coverage cancellation, leaving your vehicle unprotected.

Q5. Are used/second-hand commercial vehicles insurable?
Ans. Yes, you can insure used commercial vehicles; however, they may be subjected to inspection and valuation.

Also Read: Top 7 risks covered by truck and commercial vehicle insurance