Insurance hacks of the week for car owners: Smart ways to save big

Car ownership in the country is on the rise, particularly in urban areas such as Metro Manila, Cebu, and Davao. But let’s be honest, buying a car is not that simple; it comes with its own fair share of worries. From heavy traffic, sudden downpours, to unexpected accidents, anything can happen when out on the road. That’s why having the right car insurance really matters. However, many Filipino car owners still view insurance as a burden, finding it confusing and expensive. The worst part is that insurance is required only at vehicle registration or renewal.

Now, here’s some good news - car insurance doesn’t have to be a burden. Experts at Carmudi have developed hacks for car owners. Here, you’ll learn simple, practical ways to save money, mistakes to avoid and ways to get the most out of your policy.

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

So, let’s begin …

Car insurance: Why is it mandatory?

All motor vehicles in the country are required to be registered with the Land Transportation Office (LTO), for which Compulsory Third Party Liability (CTPL) insurance is a must. Thus, CTPL insurance has become the basis of car insurance in the Philippines. Let us now check out different types of car insurance plans and the coverage they offer.

Common types of car insurance coverages

Filipino car owners typically have the following insurance plans at their disposal -

CTPL insurance	A must, required by law, insurance plan. It offers limited protection, including bodily injuries or death of third parties in case of an accident.
Comprehensive insurance	Highly recommended coverage for car owners. It provides broad coverage for accidents, theft, fire, and other unforeseen events, depending on the provider.
Third-Party Property Damage (TPPD)	It is an add-on coverage that protects you against damage to another person’s property.
Acts of God/Nature Coverage	A highly essential add-on for car owners living or commuting to flood- or other disaster-prone areas.

Note that it is essential for car owners to have a clear understanding of car insurance coverage options. Doing so will help ensure smarter policy strategies.

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

Car insurance hacks every car owner should know

It is time now to discuss practical, real-world tips that will help you get the best from your car insurance policy. The best part: these tips are simple, legal, and effective, and can be applied immediately.

Hack #1: Compare policies beyond price - look at claims reputation

Most car owners choose an insurance policy solely based on the lowest premium. But that’s risky. Why? A low price means nothing if the claims take months to process and the coverage is limited.

Tip: Check the provider’s data
The IC publishes data on licenses, insurance providers, premiums earned, paid-up capital, and related metrics. All this will give you a good idea about the insurer’s financial stability. Furthermore, it is essential to review customer reviews, claim turnaround times, and poor claim histories.

Hack #2: Bundle policies to get bigger & better discounts

Insurance companies often reward loyalty; therefore, it is suggested that car owners choose one provider for all their insurance needs.

Tip: Motor + Home + Health insurance
If you already have health and/or home insurance, ask your provider about bundling discounts. Also, if you own more than one vehicle, choose the same provider for their coverage. Some Filipino car owners save up to 15% annually by consolidating their policies with a single insurer.

Hack #3: Adjust your coverage as your car ages

A new car requires full protection, but what about an 8-year-old vehicle? Does it require the same coverage, or can it be adjusted slightly?

Tip: Drop your comprehensive coverage when it’s time
As your car’s value depreciates, comprehensive insurance may cost more than it’s worth. It is better to opt for limited or customised coverage, as this will significantly reduce premiums while still providing protection.

Hack #4: Use dashcams and anti-theft devices

Remember, technology is your friend; it can help you and even save you money on insurance.

Tip: Safety devices can lower premiums
Installing dashcams, alarms, GPS trackers, or other safety devices can substantially reduce your premium by lowering the insurer’s risk. Furthermore, these devices help expedite claims by providing evidence from accidents.

Hack #5: Go for an annual instead of a monthly premium

While monthly premiums may feel lighter, they often cost more in the long run.

Tip: Avoiding service fees
Some insurance providers charge service or instalment fees when policyholders choose to pay a monthly or quarterly premium rather than a single lump sum payment. Paying annually can help you avoid these extra costs, and you may even qualify for a small discount.

Hack #6: Take advantage of no-claim discounts

Safe driving offers several advantages beyond keeping you and others unharmed. One such benefit is saving money on insurance.

Tip: Staying claim-free pays off
Many insurers reward drivers who don’t file claims during the entire policy term. Maintaining a clean record can lead to renewal discounts and better offers over time.

Also Read: Your weekend car insurance guide: Flood, theft, & accident coverage

Mistakes Filipino car owners make with insurance

It doesn’t matter how experienced a driver you are; you can always fall into traps that cost money and peace of mind.

Mistake #1: Over-insuring or under-insuring the vehicle

While over-insuring is a waste of money, under-insuring is no less dangerous and can lead to high out-of-pocket expenses after an accident. The key is to align your requirements with the car’s current market value & usage to ensure coverage.

Mistake #2: Ignoring policy fine print

Some insurance policies exclude flood damage, have special conditions, or have hidden charges. Therefore, it is better always to review policy exclusions carefully.

Also Read: Bought a new Car? Getting a new insurance policy vs adding it to your existing plan

Tips to choose the right provider

Remember, it is equally important to select the right insurance provider as it is to select the right coverage.

Tip 1: Local vs. international provider

Local insurance providers often understand the Philippines road conditions better, while international companies might offer advanced digital tools and better customer service. Make sure to choose based on service quality, not just name.

Tip 2: Check customer support and accessibility

Look for insurance providers with 24/7 hotlines, local branches, numerous accredited repair shops, and easy-to-use mobile apps. Remember, a strong support system makes a significant difference during stressful times.

Also Read: Car insurance lapse in 2026: The risk and how to recover

Bottom line

Car insurance doesn’t have to be confusing or expensive - given that you know the right hacks. This will ensure you save money, avoid unnecessary stress, and enjoy better protection on the road. The key is to stay informed, review policy regularly, and make small adjustments that add up to big savings.

Remember, smart insurance choices today will lead to safer and more confident driving tomorrow.

 

Also Read: Car insurance in 2026: How extreme environmental conditions are shaping policies