Car Insurance in the Philippines

It costs about 2,000 pesos per year (around €115). You pay in advance for the whole year and no cancellation or refunds are allowed. Having a basic third-party insurance is the cheapest Philippines auto insurance plan

Most foreign visitors to the Philippines can use their own country driving licence for three months after that they have to get a local driving licence. However, every time you leave the country and come back the clock starts again.

Car Insurance

Most of the time, you can buy your insurance at the Land Transportation Office (LTO)  office in cash.

It costs about 2,000 pesos per year (around €115).  You pay in advance for the whole year and no cancellation or refunds are allowed. Having a basic third-party insurance is the cheapest Philippines auto insurance plan. You can always extend your insurance, think about collision cover, uninsured motorists insurance etc. Driving without an insurance is considered a serious crime, resulting in severe penalties.

The term “comprehensive” is used  for covering almost everything. This includes “collision and upset”, physical damage other than collision, loss by theft, fire, flood and in most cases, extended liability.This insurance is bought separately, from any agent you choose, and it costs more.

The following are six major car insurance providers:

1. Prudential Guarantee , offering auto, car and medical insurances.
2. BPI MS Insurance,  offering auto, car and travel insurances.
3. Mapfre Insular , offering car and business insurances.
4. Malayan Insurance , offering car, fire and marine insurances.
5. UCPB GEN , offering fire, engineering, marine, motor, cars, accident, liability and casualty insurances.
6. Standard Insurance  offering car, auto, motorcycle, breakdown, marine and liability insurances.

You have to decide which one suits your needs the best. We suggest that you take a look at their websites or contact them directly to fully explore your options.

Compulsory Third party Liability (CTPL) insurance  is  required of all vehicles at annual registration time.  In order to get your first set of license plates or to start your annual registration renewal process (get new stickers for your plates and windshield), you have to produce an Official Receipt (OR) for a new, fully paid for CTPL policy at the renewal window.

Typically you buy the insurance right there at the LTO complex, in cash.

If you have a collision with another vehicle, your insurance covers the cost of injuries you and your passengers suffer, while the other driver’s insurance covers his losses … it doesn’t matter who is at fault … hence the typical “No Fault” terminology.

If you run over a pedestrian, or knock down a bicyclist, or knock down someone’s fence,  they then can also recover damages from your policy.

All registered vehicles should have this mandatory insurance, and it is your “first line of defense”.  Limits however are low, and this insurance doesn’t cover damage to your own vehicle.

 Comprehensive

Here in the Philippines the term “comprehensive” is used in its proper dictionary meaning … comprehensive meaning covering everything .. or almost everything.

This includes “collision and upset”, physical damage other than collision, loss by theft, fire, flood (check your policy before you buy) and in most cases, extended liability.

This insurance is bought separately, from any agent you choose, and it costs more.