Car insurance FAQs updated for 2026: Essential, practical, and easy guide for drivers

New year's calls for new resolutions, better clarity, and peace of mind that you haven’t experienced in the past. So, let’s begin 2026 on a fresh note, starting with clearing all those doubts that you have about car insurance.

We have said it several times, and we’ll repeat it: car insurance is not just a legal requirement to obtain LTO registration; it is a much-needed financial shield for car owners. Furthermore, with rising repair costs, unpredictable weather, and heavy traffic, having the right coverage is more critical than ever. We have updated our car insurance FAQ to answer the most common questions and make you ready for insurance in 2026.

Also Read: Insurance resolutions for 2026: 6 Smart moves to protect your vehicle and save more

Let’s begin with the basics, then move to the more specific questions.

Why does car insurance matter in 2026?

If you don’t know, car insurance is a contract between you and your insurer. The premium you pay helps the provider cover the costs if the insured vehicle gets stolen, damaged, or involved in an accident/collision.

As for 2026, car insurance is essential because of the following reasons -

• Vehicle repair costs continue to rise.
• Floods and typhoons are becoming more frequent.
• Traffic is increasing and remains a concern in urban areas.
• CTPL remains a legal requirement to register a vehicle with the vehicle registration authority.

Which car insurance coverages are essential and recommended for Filipinos?

Understanding coverage options before finalising your insurance plan helps you feel confident and in control of your protection, ensuring you get what you need most.

Compulsory Third Party Liability (CTPL) insurance
CTPL is mandatory, and it covers bodily injuries or the death of a third party. However, it does not cover vehicle damage and is usually bundled with vehicle registration.

Comprehensive car insurance
Comprehensive insurance is optional but highly recommended for broader coverage and peace of mind. Coverage under the comprehensive plan varies by provider and may be customised.

Own Damage and theft coverage
The coverage pays for losses from theft or attempted theft and for repairs resulting from an accident.

Acts of Nature coverage
This coverage covers damages to your vehicle caused by floods, typhoons, landslides, earthquakes, etc. Given the country’s climatic conditions, this coverage is highly recommended.

Add-ons coverage
Depending on the car owner's needs, the following add-ons can be selected: personal accident coverage, roadside assistance, auto passenger coverage, and total loss coverage.

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

What is the cost of car insurance in the Philippines for 2026?

In general, the cost of car insurance depends on several factors, such as the car's make, model, & year; the car’s value; the driver’s age & driving record; and the coverage type & add-ons.

While insurance prices vary, on average, comprehensive car insurance typically costs 1.5% to 3% of the car’s market value annually. We’d like to note that CTPL ins⇒urance is much cheaper but offers limited coverage.

How to apply for car insurance in 2026?

First, let’s talk about the documents you need to apply for insurance, which include a valid government-issued ID, car photos (for comprehensive insurance), and the vehicle’s OR/CR.

As for the application process, here’s the chain you need to follow -
Choose a well-reputed & licensed provider ⇒ Select a coverage plan & add-ons ⇒ Submit required documents ⇒ Pay the premium ⇒ Receive your policy

When and how to file a car insurance claim?

Insurance providers want you to file an insurance claim immediately after an accident. You must start by calling the insurer's hotline, taking photos of the damage & scene, exchanging details with the other party (if possible), calling the police, & securing a police report.

Here, we’d like to mention what to avoid when filing a claim: delayed reporting, submitting incomplete documents, and getting the car repaired without the insurer’s approval.

What pictures should I take after an accident for an insurance claim?

To support your claim application, it is a good idea to submit photos of the damage and the scene, as they act as evidence for your claim. For that to happen, you need to take clear pictures of -

• All damaged parts of your car
• Other vehicles involved
• License plates
• Full accident scene
• Road sign and surroundings

Furthermore, ensure all photos are clear, well-lit, and unedited.

Can I submit photos taken using my mobile phone with the claim application form?

Absolutely, yes. Insurance providers accept photos taken on mobile phones, provided they are clear, original, and time-stamped when possible.

When should I renew my car insurance policy?

It is recommended to renew your car insurance policy at least 7 to 14 days before the expiry date. There are several benefits of timely renewal; for instance, it helps avoid coverage gaps, LTO registration issues, and higher premiums due to late renewal.

Also Read: Think your policy just expired? It might be cancelled — Learn the difference

What happens if my car insurance policy expires before renewal?

If your car insurance policy expires, you will face the following consequences -

• No coverage for accidents or damage
• Face problems with LTO registration
• Provider will not pay for an accident during the coverage gap period

Also Read: Why knowing your car insurance expiry date matters—and how to check it

Can we switch insurance providers during policy renewal?

Yes, you can switch your car insurance provider, and the best time to do so is at renewal. However, before doing so, make sure to compare coverage, premiums, claim reviews, and benefits.

Also Read: Your go-to guide for car insurance renewal in the Philippines

Why do car insurance claims get denied?

Some of the common reasons for claim denial include -

• Late claim reporting
• Driving under the influence
• Incomplete documentation
• Damage not covered by the policy
• Misrepresentation of facts

Can I appeal a denied car insurance claim?

Yes, a policyholder can appeal a denied claim. All you need to do is request a written explanation from the insurer. If that doesn’t work, you can either take the legal route or knock on the door of the Insurance Commission.

Also Read: Car insurance claim denied? Here’s how to file an appeal in the Philippines

What documents are required to challenge a claim denial

To challenge a denied claim, you need to prepare the following documents -

• Claim reference number
• Photos & videos of the accident
• Police report, if applicable
• Repair estimates
• Copy of your insurance policy

Can I repair my car before claim approval?

It is not advisable to have your car repaired before the inspection and claim approval, as it may lead to claim denial. It is advisable to always wait for the insurer's instructions before touching your damaged vehicle.

Tips for choosing the right car insurance provider

• Check if the Insurance Commission licenses the insurer
• Read customer reviews
• Compare coverage, not just price
• Inquire about claim turnaround time

Also Read: Essential rights and duties every car insurance policyholder in the Philippines should know

Bottom line
The aim is to help Filipino car owners understand car insurance and make smarter decisions. As a result, you will have the right coverage that protects not only your vehicle but also your finances. Choosing appropriate insurance coverage, whether you are a first-time applicant or renewing your policy, helps ensure you are safe, legally compliant, and able to enjoy every trip.

 

Also Read: New car buyers' guide: What insurance you need in 2026