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

For many Filipinos, buying a car is a milestone of excitement and aspiration. Nothing beats the feeling of buying your first vehicle or upgrading your family vehicle lineup. But it is also true that buying a car comes with its own set of challenges and responsibilities - one of which is associating with the right insurance provider and getting an adequate insurance plan as per your requirements.

A guide to the insurance needs of new car buyers in 2026, especially designed for first-time and upcoming car owners in the country. You see, factors such as traffic congestion, unpredictable weather, and road accidents are a harsh reality in our country; therefore, insurance is essential. This artificial protective shield not only protects your car but also your finances, providing peace of mind.

In 2026, we expect car insurance rules to remain strict for both existing and new car owners. Therefore, it is essential to understand motor vehicle insurance and different coverage to get the best deal.

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

Car insurance in the Philippines - Back to the basics

What is car insurance?
Car insurance is nothing but a contract between the car owner and the insurance company.

How does it work?
Working? Here, the owner pays the premium, and in return, the provider agrees to cover certain losses, such as theft, accidents, fire, and flooding, depending on the policy coverage. Whenever such an uncertain event takes place, the owner files the claim with the provider. Once verification is complete, the insurer pays for repair, replacement, or medical costs, depending on the coverage.

Is insurance mandatory for new vehicles?
Yes, in the Philippines, insurance is mandatory for new vehicles. In fact, car owners cannot register a vehicle with the Land Transportation Office (LTO) without insurance. This rule is intended to protect car owners and other drivers and pedestrians who may be affected by an accident or collision.

Mandatory car insurance you need in 2026

Compulsory Third Party Liability (CTPL)

CTPL insurance is required by law in the country for all motor vehicles, including brand-new cars.

What does CTPL cover?
CTPL coverage includes bodily injuries or the death of a third party. This insurance ensures that the accident victims receive immediate financial assistance without any trouble.

What CTPL does not cover?
CTPL insurance does not cover the following -

• Damage to the insured car
• Theft
• Flood, fire, typhoon damage
• Injuries to the insured car owner and passengers

These limitations make CTPL insurance insufficient for most car owners, especially new ones.

Optional but highly recommended car insurance coverage

Comprehensive car insurance
It is one of the most popular insurance coverages for new cars in the country.

Coverage against own damage
The owner's damage plan covers the cost of repairing or replacing the insured car for damage caused by theft, fire, accident, collision, vandalism, or explosion.

Coverage against acts of nature
Acts of God coverage is essential for Filipino car owners; it offers protection against floods, typhoons, earthquakes, landslides, and volcanic eruptions. Given the high frequency of such disasters in the country, this coverage is essential.

Coverage against third-party liability (beyond CTPL)
This add-on extends third-party liability beyond CTPL insurance. It offers coverage against third-party property damage.

It is helpful in case of accidents involving expensive vehicles and significant property damage.

Car insurance requirements: Cash vs. finance deal

Insurance requirements: When a car is purchased via cash

If your vehicle is financed through a bank or dealership, the following insurance coverage is needed -

• Comprehensive insurance
• Coverage must last for the full loan term
• Bank is listed as the beneficiary (usually)

Insurance requirements: When a car is purchased via bank or in-house financing

If the car is purchased by making a cash payment, the following coverage is a must -

• CTPL insurance is a legal requirement
• Comprehensive insurance, optional but highly recommended

While not mandatory, market experts recommend full coverage that lasts 3 to 5 years.

Also Read: Why should you avoid making small car insurance claims in the Philippines?

Car insurance cost in 2026

What factors affect insurance premiums?

In the Philippines, insurance premiums depend on the following -

• Car’s make, model, and value
• Driver’s age and driving history
• Location (flood-prone or heavy traffic areas cost more)
• Coverage type and add-ons
• Safety features
• Accessories

Price range

CTPL insurance	Php 300 to PHP 1,500 annually
Comprehensive insurance	Php 10,000 to PHP 100,000 annually

CTPL car insurance providers in the Philippines

Here is a list of top insurance providers offering CTPL coverage in the country (in no specific order) -

• Oona insurance
• Mercantile insurance
• Prudential Guarantee
• Standard insurance
• SGI Philippines
• Stronghold
• FPG
• Paramount Life & General Insurance
• Pioneer Group
• Malayan insurance

Also Read: Don’t buy insurance without knowing these 10 key facts

Coverage to consider when opting for a comprehensive plan

The best part of comprehensive insurance is that the policyholder can choose the coverage they need. Here are some top-listed considerations -

• Roadside assistance: Offers towing, on-site repair, and hotel accommodation if the car is under repair.
• Loss of Use: Covers additional expenses incurred while the vehicle is being repaired after an accident.
• Riots and Strike coverage: Covers the cost of repairs when the vehicle is damaged due to a riot, strike, or civil commotion.
• Personal Accident (PA) coverage: Covers medical expenses of the driver and passengers.
• Acts of God: This coverage is ideal for damage caused by natural disasters, including floods, typhoons, and earthquakes.
• Own Damage: This plan reimburses the car owner for theft or damage to the car.
• Voluntary or Property Damage Third Party Liability: It pays for damages caused by the insured vehicle to other people’s property, in case of an accident.

Buying car insurance: Traditional vs. Digital platform

In the Philippines, a car owner can purchase insurance from two primary sources - offline and online. The former is a traditional option available through car dealerships, banks, and licensed agents. The latter is via online/digital insurers and marketplaces. Here’s what the two platforms have to offer -

Traditional platform	Digital platform
Long-established reputation Physical office One-on-one conversations	Faster online quotes Easy comparison Paperless operations

Also Read: Common car insurance renewal mistakes that can cost you more

Common insurance mistakes new car owners must avoid

• Relying only on CTPL insurance
• Skipping acts of nature coverage
• Not giving the policy a thorough read, skipping exclusions
• Forgetting the policy renewal date

Qualities to look for in a car insurance provider

Licensed & government-approved: Always choose a provider that the Insurance Commission of the Philippines accredits. This ensures the company’s legitimacy, financial capability, and regulation.

Fast & fair claim process: A good insurer has precise claim requirements, a quick process, and a strong communication network.

Wide coverage options: A reliable provider should offer its policyholders a comprehensive package, coverage for Acts of God, high third-party liability limits, and optional add-ons.

Straightforward & easy to understand policy: Look for the provider that explains coverage in simple language, clearly states exclusions, and works on avoiding fine print confusions.

Good reputation and reviews: Before choosing a provider, check the online reviews, social media feedback, and recommendations from car owners.

Strong customer service: Remember, a good provider offers chat support, responsive hotlines, emergency support, and helpful customer service staff.

Vast repair network: Top insurance providers offer nationwide repair shop networks and cashless repair options.

Reasonable pricing: Remember, the cheapest options are not always the best; look for providers offering clear premium breakdowns, no hidden fees, and fair pricing based on coverage.

Easy renewal process and online service: In 2026, look for providers with features such as online policy renewal, claim filing, and other services that save time & efforts.

Financial stability: Choose providers that have been operating for many years and have strong financial standing.

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

Bottom line

Carmudi’s new car buyer guide on buying insurance for 2026 is a must-read, at least for first-time owners. Here are a few key points the blog highlights -

• Insurance is not just a legal requirement, but it is also a shield that protects your finances.
• Car owners must consider combining mandatory CTPL insurance with comprehensive coverage.
• Coverage that meets the owner's requirements provides peace of mind even in the most stressful situations, such as accidents, theft, collisions, fire, and flood.
• Choose the right provider and plan now to enjoy your new car with confidence and peace of mind.

Also Read: Top 10 electric vehicle insurance providers in the Philippines and what they have to offer