Electric car insurance in the Philippines: All you need to know

Electric cars are slowly becoming increasingly popular worldwide, and the Philippines is no exception. Reason? Well, not only do electric cars have several environmental benefits but they also have long-term cost savings perks.

As more and more Filipinos are making the switch to electric cars, understanding the key points of electric car insurance becomes crucial. And that’s where Carmudi enters with a comprehensive guide that covers all information about electric car insurance in the Philippines including, cost, coverage options, and best providers.

So, without any delay let’s get started with electric car insurance.

Electric cars in the Philippines

As mentioned, electric vehicles are revolutionizing the global automobile industry and their effects are reaching the Philippines too. With growing environmental awareness and government incentives, more Filipinos are opting for electric cars. For instance, in 2023 alone, about 10,600 electric vehicles were sold in the Philippines, a significant leap (1000 units) compared to the previous year.

As for insurance, getting one for an electric car can differ significantly from that of a traditional vehicle. And therefore it becomes important to provide you with a detailed overview of electric car insurance in the Philippines, ensuring you make an informed decision when purchasing or insuring your EV.

Understanding electric car insurance

Electric car insurance is a specialized policy designed to cover the unique aspects and potential risks associated with electric vehicles. Unlike traditional car insurance, electric car insurance often includes provisions for battery replacement, charging equipment, and specialized repair services. Make sure you understand these terms to ensure adequate coverage for your EV.

Importance of electric car insurance

Like car insurance offers protection against financial losses occurring due to an accident or other damage to the vehicle in exchange for premiums; electric car insurance offers several types of coverage to the EV. Here are a few more reasons why electric car insurance becomes essential for a car owner -

Specialized coverage: Compared to traditional cars, EVs have a unique set of components like batteries and electric drivetrains that require specialized coverage.

Investment protection: EVs are typically more expensive than conventional cars, making adequate insurance crucial.

Compliance with the law: Like all motor vehicles, EVs must be insured to be legally driven on Philippine roads.

Electric car insurance coverage

Similar to traditional cars, electric car insurance in the Philippines offers a car owner an array of coverages to choose from. Let us check out different types of EV insurance coverage -

Third-party liability insurance

This is the minimum required insurance by law in the Philippines. It covers damage or injury caused to third parties but does not cover the policyholder's vehicle.

Comprehensive insurance

Comprehensive insurance covers damage to your electric vehicle from accidents, theft, fire, vandalism, and natural disasters. It also covers third-party liability, which is essential in case your EV causes damage to another person's property or injures someone.

Personal Accident coverage

This one provides compensation in the event of injury or death of the EV driver or passengers due to an accident.

Acts of nature coverage

Given the Philippines' high susceptibility to natural disasters, this coverage is one of the most recommended insurance. It covers damage caused to the EV by floods, earthquakes, typhoons, and other natural events.

Battery coverage

Specific to electric cars, this covers the cost of repairing or replacing the vehicle's battery, which is one of the most expensive components of an EV.

Factors influencing electric car insurance premiums

Similar to conventional internal combustion engine vehicles, electric cars' insurance premium is influenced by several factors. Let us discuss each in detail -

EV’s value/price

The higher the value of the electric vehicle, the higher the insurance premium. This is due to the increased cost of repairs and replacement.

Driving history

A driver’s driving history has a great impact on the EV premium. While a clean driving record can help reduce premiums, a history of accidents or violations can increase the premium.

Location

In case the car owner resides in an area prone to natural disasters or with high crime rates, it can increase insurance costs and vice versa.

Usage and mileage

How often and how far a car owner drives the EV can affect the insurance costs. Higher usage and mileage typically result in higher premiums.

Type of coverage

While comprehensive coverage costs more than third-party liability insurance, it provides broader protection to the EV and its owner.

Ways to reduce EV insurance premium

After understanding the factors that influence an electric car insurance premium, here are a few points that’ll help an EV owner keep the premium cost stay reasonable.

Regular & proper maintenance

Proper maintenance is key to ensure that the EV remains in good condition. It is recommended to follow the manufacturer’s maintenance schedule to keep the car in top-notch condition.

Battery care

Proper care of the battery can prolong its lifespan and improve efficiency. This can be achieved by regular charging and avoiding extreme temperatures.

Safe driving

Last but not least, is to practice safe driving habits that will help avoid accidents and will also ensure low insurance premiums.

Selecting an electric car insurance provider

Choosing insurance coverage is a task, and so is selecting an insurance provider for your electric car. Here are a few factors to consider -

Reputation and reliability of the provider

It is advisable to choose a provider with a good reputation and positive customer reviews. This ensures the reliability and efficient handling of claims.

Insurance cost & premium

Always compare premiums from different providers to find the best value for the coverage offered. Look for any discounts or incentives for electric vehicles.

Coverage options

It is important to ensure the provider offers specialized coverage options for electric cars, including battery and charging equipment coverage.

Customer service

Good customer service has become crucial in the service industry and insurance is no different. As it ensures smooth claim processing and overall satisfaction. Also, check for 24/7 support and ease of contact.

Step-by-step guide to getting EV insurance

Step 1: Research and compare

Start your car insurance journey by researching different insurance providers and comparing their coverage options, premiums, and customer reviews.

Step 2: Request a quote

Contact the selected insurance providers and request them for quotes based on your vehicle details and desired coverage.

Step 3: Evaluate the coverage options

Once you have the quotes from different insurance providers, it is time for some thorough evaluation. We’d suggest you thoroughly review the coverage details, exclusions, and limits of each policy. Make sure the selected policy meets your needs and provides adequate protection for your electric car.

Step 4: Purchase and activate

After all the hard work it is now time to purchase and activate the selected insurance policy. This can be done by completing the application process, paying the premium, and activating your coverage. Once that’s all done, it is time to ensure that you receive all necessary documentation from the provider.

Electric car insurance and future trends

With the evolving electric car market, EV insurance is also fast catching up to meet customer needs and satisfaction. Here are some trends one can look out for -

Technological advancements

Advances in EV technology, like autonomous driving, longer-lasting batteries, and others are likely to positively impact insurance coverage and premiums.

Increased competition

With the growing market, more and more insurance will enter the market, thus increasing the competition and ultimately driving down the premium cost and improving the coverage options.

Usage-based insurance

The involvement of telematics technology enables insurance providers to offer usage-based insurance, where premiums are based on actual driving behavior.

Bottom line

Electric car insurance in the Philippines is an essential aspect of owning an EV, as it offers protection for the EV owner’s investment and ensures compliance with legal requirements. Also, it is very important to understand the different types of coverage, factors affecting premiums, and how to choose the right provider, to make an informed decision and enjoy the benefits of EV ownership and insurance.

Also Read: Understanding car insurance cost in the Philippines in 2024