Rental car insurance in the Philippines: What it covers and where to rent

Definitely, renting a car is an excellent option for exploring, as it lets you go about your day or trip on your schedule. There is no waiting for buses, no rushing to catch the last jeepney ride, and no bargaining with the tricycle driver. But this freedom to explore by rental car comes with its own set of responsibilities, like driving carefully and taking care of yourself and others on the road.

One of the easiest ways to be a responsible rental car driver is to choose a rental car that includes insurance. It is a smart move you should make, whether you are travelling for work, family duties, or a trip.

We have created a guide to help you better understand rental car insurance in the Philippines, offering clear, practical, and straightforward advice. As a bonus tip, we have also included a few well-established car rental companies you could go for in the future.

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

Also Read: Must-have car insurance coverage for travel enthusiasts in 2026

Car rental insurance in the Philippines: Why it matters

Let’s be honest, driving is a pretty challenging task, especially in the Philippines, thanks to tight streets in Metro Manila, curvy provincial roads, heavy traffic, and potholes. To this, add motorcyclists weaving through traffic, occasional flooding, and the risk of sudden rain showers. All this makes car rental insurance a necessity.

You see, even the most experienced and careful driver is at risk of encountering unfortunate situations that can lead to mirror bumps, minor scratches, and considerable damage. All of which can turn into an expensive problem without appropriate insurance coverage.

Common risks car renters face in the Philippines

Some of the most common risks renters face include -

• Minor collision in heavy traffic
• Theft and break-ins (especially in unfamiliar areas)
• Dents and scratches in tight parking spots
• Accidents involving pedestrians and two-wheelers

Don't worry, you can get coverage against such risks and more with a good car rental insurance policy. This will protect both your hard-earned money and peace of mind.

Type of car rental insurance coverage

Understanding insurance, whether it's a private car, a commercial vehicle, or a rental car, doesn’t have to be complicated. All that matters is having the proper knowledge, like learning about the different types of car rental coverages. The table below elaborates on the same -

Collision Damage Waiver (CDW)	This coverage limits how much you will pay if the rental car is damaged. Meaning, CDW reduces your liability, sometimes even to zero, depending on the provider.
Theft protection	This one covers losses if the rented car is stolen or any part is lost. Though theft is rare, it is always a good idea to stay protected when travelling to unfamiliar areas.
Third Party Liability (TPL)	TPL is mandatory for all motor vehicles in the country, whether personal or rental cars. Most reputable rental alerts include it in the package. It offers limited coverage against third-party bodily injury or death. Most reputable rentals already include this coverage.
Personal Accident coverage	It covers medical expenses for the driver and passengers in the event of an accident. It might be a small amount, but it can make a big difference.

Also Read: How to lower your insurance premium in 2026 (without sacrificing coverage)

Tips to choose the right car rental with insurance

Tip 1: Coverage & price balance

Cheap doesn’t always have to mean a great deal. You see, some low-cost rentals offer limited insurance coverage - leaving you with burdensome out-of-pocket expenses. Make sure to check what is included in the price.

Tip 2: Transparency & fine print

Reliable and well-established companies make it a point to make clients comfortable with every detail, terms & conditions explained clearly. If a provider hides details or avoids questions, stay clear; it is a red flag.

Tip 3: Local vs. international providers

It can be tricky to choose between a local and an international provider. While the former offers flexibility, low rates, and might seem approachable, the latter offers consistency, digital presence, and world-class customer service. It is essential to choose the one that best fits your needs.

Car rentals with insurance in the Philippines

Let us now discuss some of the well-known names in the market that offer top-class rental cars with insurance.

Avis Philippines

Starting the list with a well-known international brand, Avis, which has a strong market presence. Clients appreciate it for offering well-maintained vehicles, clear terms & conditions, and comprehensive insurance packages.

Ideal for: Business travellers and long-term rentals

Hertz Philippines

Another strong contender on the list is Hertz, known for its reliability and flexible insurance options, including Third-Party Liability and Collision Damage Waiver.

Ideal for: First-time renters

Viajero Rent A Car

This one focuses on travellers and offers rental cars with easy-to-understand and straightforward insurance packages.

Ideal for: Casual renters

Diamond Rent a Car

Time for some local flavour, Diamond Rent a Car is a popular provider among Filipinos. They offer competitive pricing, friendly local support, and apparent insurance inclusions.

Ideal for: Locals and tourists

Budget Car Rental Philippines

As the name suggests, this one offers affordable, protected services. Furthermore, the insurance options are customisable, which is excellent for budget-conscious clients.

Ideal for: Travellers on a budget

Saferide Car Rental

This one's prime focus is on clients' safety, convenience, and protection. They are known to offer bundled insurance packages, leaving you care-free, with no worries of missing coverage.

Alpha Rentals

If you are into chauffeur-driven, then this one is for you. Don’t worry, Alpha Drive also offers self-driven rentals. As for insurance coverage, it is clear and transparent.

Ideal for: Family trips

Note that the providers are sourced through recommendations from locals and tourists, and are listed in no specific order.

Car rentals with insurance: Time cost discussion

Here is the average cost of car rentals with insurance, depending on the car and add-ons -

Economy cars	PHP 2,000 to PHP 3,800 per day
Sedans/SUVs	PHP 3,500 to PHP 6,000 per day
Insurance add-ons	PHP 300 to PHP 800 per day

Note that the cost also varies by city or province.

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

Hidden fees to watch out for

When comparing car rental services, make sure to take into consideration the following costs -

• Deductibles
• Damage assessment fees
• Late return penalties

Remember, it is better to read the contract thoroughly to avoid surprises later.

Things to remember when renting locally

Make sure to inspect the car before driving, and take photos and videos of the unit yourself, in proper lighting. Look for dents and scratches, interior conditions, tyres, and windshield condition.

Remember, simple steps protect you against unfair damage claims.

Also Read: How to avoid common car insurance claim rejections (2026 update): Proven checklist for claims success

Bottom line

Choosing the right car rental with insurance is not just about following the rules, but it is also about protection - for you, your passengers and others on the road. With the exemplary service by your side, you’ll be able to enjoy your journey to the fullest - whether it's navigating the lively city streets or exploring the beautiful provinces.

Here are a few essential tips -

• Take time to compare
• Understand the coverage
• Ask questions

This little prep will help you procure a stress-free driving experience.

Also Read: Should Filipino drivers switch to usage-based car insurance in 2026?