A simple guide to compare car insurance policies in the Philippines: Smart & practical tips

Buying car insurance in the Philippines doesn’t have to be confusing or overwhelming. In fact, with the proper knowledge, it should be just the opposite, i.e., smooth and blissful. But sadly, for many first-time car owners, that is not the case, all thanks to the technical-sounding insurance terminology, price variation among providers, and policies that look alike at first glance.

To address this problem, we have curated a simple guide to help you compare car insurance policies. The best part is every bit is explained most simply - no jargon, no pressure, just helpful information in plain English.

In this article, we’ll be shedding light on the following topics -

• How car insurance works in the Philippines
• What to look for when comparing policies
• How to choose a policy that fits your needs & budget

So, without further delay, let’s get started.…

Car insurance in the Philippines: Importance and requirements

In simple terms, car insurance is a financial safety net that protects you (the car owner) against losses caused by accidents, damage, or theft. To some, it may feel like an extra expense, but in reality, it can save you thousands of pesos in unexpected situations.

Importance of car insurance

Accidents can happen to anyone, anytime - you can fall prey to it on a busy Metro Manila road, a narrow provincial road, or even in a parking lot. With insurance by your side, you can enjoy peace of mind, as it covers all expenses, whether related to car or medical costs.

Requirement by law

Is car insurance legally required? The answer is yes. Compulsory Third Party Liability (CTPL) insurance is required for LTO vehicle registration. However, CTPL only covers bodily injuries or death related to a third party. It does not offer protection to the insured car.

Also Read: Car insurance made easy: Tips for new drivers in the Philippines

Car insurance policies: Types & coverage

Before you compare policies, it is essential to understand the common types available in the local insurance market. The list includes -

CTPL	Comprehensive coverage	Add-ons
Required by law Covers bodily injury or death of a third party Does not cover insured vehicle damage	Optional, but highly recommended  Covers your car against accidental damage, theft, fire, flood, etc High premium, broad protection	Provides enhanced protection  Policyholder pays extra for specific needs Common add-ons include roadside assistance, acts of god, personal accident coverage, and loss of use

Also Read: Difference between basic car insurance and add-ons: Insights for Filipino drivers

Key factors to compare when choosing insurance

Not all car insurance policies are the same; therefore, it is essential to compare the relevant details to ensure you get real value for your money.

Coverage scope	Review the risks included in the plan—for instance, accident, theft, flood, fire, earthquake, and vandalism.
Premium	A lower premium may look attractive, but it might mean limited coverage. Therefore, ensure you balance affordability and protection.
Deductible amount	It is the agreed-upon amount you pay out of pocket before the insurance settlement amount kicks in. Note that a low deductible amount means a high premium and vice versa.
Claim process	A good insurance policy should have a fast, straightforward claim process. Therefore, it is essential to look for insurers with a reputation for quick approvals.
Accredited repair shops	Choose insurance providers with multiple accredited repair shops. Make sure the list includes centres near your location to avoid inconvenience.

Also Read: Filing a car insurance claim? Here are the papers you must prepare

How to compare insurance providers

Different insurance companies have distinct advantages: some are known for affordability, while others offer strong customer support. Here are a few attributes that you should look for when buying an insurance policy -

Reputation & financial stability

Ensure the Insurance Commission accredits the provider; this will demonstrate their trustworthiness. Next, assess the market reputation by reviewing customers’ feedback.

Customer support

Reliable customer support is essential, as it enables the policyholder to contact the provider promptly (especially during emergencies such as accidents). A 24/7 support service is considered the best in the business.

Digital access

Today, digital accessibility is crucial; it provides policyholders with convenience. Therefore, look for providers that offer online quotes, mobile apps, and digital claims to make everything fast and easy.

Insurance terms you should know

Insurance documents can be intimidating and complex for many, but by focusing on key sections, they can be simplified. Here are a few policy terms most commonly found in insurance papers -

• Exclusions: Risks or situations not covered by the policy. For instance, driving under the influence or by an unauthorised driver.
• Policy limits: The maximum amount an insurer will pay per claim or per year.
• Add-ons: Policy add-ons are optional coverages, such as Acts of God, roadside assistance, or personal accident coverage. They customise the policy to meet clients' requirements, which increases the premium.

Also Read: Windscreen coverage in the Philippines explained: Inclusions, exclusions, and why it matters

Tips for first-time car insurance buyers

If this is your first time buying car insurance, then make sure to follow these tips to make the process seamless and enjoy a peaceful driving experience -

• Don’t buy based on price alone
• Ask your provider for sample policies
• Compare at least three to four insurers
• Declare accurate vehicle and driver information
• Read customer reviews

Car insurance cost?

Wanna know how much you’ll be paying for insurance? The cost of car insurance depends on several factors, including -

• Vehicle’s make and model
• Vehicle’s value
• Driver’s age, location, & driving history
• Coverage type

Also Read: Insurance for cars parked at home: Does it cover theft or fire?

When should you switch or update your policy?

A policyholder should consider updating or switching their insurance policy when -

• It is time for policy renewal
• You purchased a new car
• There is a change in driving habits or location
• Premium has increased significantly
• Your experience with the claim process was not smooth

Mistakes to avoid when comparing policies

• Going for unfamiliar insurance providers without proper research
• Overlooking the deductible amount
• Ignoring policy exclusions & limits
• Not checking claim requirements and process

Also Read: Defensive driving tips for Filipino drivers – Smart habits that pay off

Bottom line

The thing is, choosing car insurance doesn’t have to be complicated - all that is required is the correct way to compare policies and pick the most appropriate plan. This includes confidently evaluating coverage, costs, and providers without stress. By understanding the different types of policies, asking the right questions, and comparing key factors, you can protect not just your car but your finances and peace of mind.

When buying an insurance policy, remember to compare, read the fine print carefully, and choose wisely. A well-chosen policy today can save you from significant distress tomorrow.

Also Read: Car insurance add-ons in the Philippines: Myths, facts, and smart choices