Do you know what is the best and most comprehensive car insurance option for you? Car owners in the Phillippines know that it’s compulsory to get their vehicle insured. In order for your car to be allowed on the road, you have to have the most basic insurance mandated by the law. This insurance is known as the Compulsory Third Party Liability Insurance (CTPL).


What is the CPTL?

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In a situation where you’re in an accident with another vehicle and you’re in the wrong, your CPTL insurance will compensate the other third-party driver for damages to their car. Here, ‘Third Party’ refers to the person you’re involved in an accident with. The minimum premium for a CTPL is PHP 950 and it can go up to PHP 2000. This type of insurance can be bought at any Land Transport Office. The more premium you pay, the more coverage payout you will get. Usually, the payout is about PHP 10,000 to PHP 100,000.

In addition to CPTL,  there are other forms of insurance that add on to the basic coverage of CTPL. They are:

1. CTPL plus Fire and Theft

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In addition to covering third-party vehicle damage costs, this policy will cover the cost of the damage to your own car. However, that coverage is only for instances of an explosion, fire or if your car is stolen. It will not cover your vehicle damage in the event of an accident with a third party vehicle.

2. CTPL plus First Party Insurance

First party insurance is basically CTPL, with coverage of your own vehicle damage as well. This means that the policy covers the vehicle damage of the third party driver and you, the first party driver too.

3. CTPL plus Voluntary Third Party Liability (VLPT)

In the event that you are found to be the offending party, this policy covers the damage of the third party vehicle, as well as any injuries, hospitalization and treatment needed by the third party driver. Some types of VLPT also compensate for the third party driver’s family in the instance of death.

4. Comprehensive Car Insurance

car stuck betweem wall
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This type of insurance covers all the damages mentioned in the CTPL, as well as:

  • Damage to driver’s own car in an accident with a third party (first party coverage)
  • Damage to own car not due to an accident
  • Damage due to fire and explosion
  • Theft
  • Damage due to riot, strike or terrorist activities.
  • Towing service
  • Ambulance services
  • Legal services
  • Lodging and travel due to vehicle breakdown
  • 24/7 assistance from mechanics for a dead battery, fuel delivery, and locksmith

5. Comprehensive plus Acts of God Coverage ( AOG)

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Although this sounds a tad bit religious, it’s actually a policy that covers all that’s mentioned in the comprehensive coverage, as well as damages to your vehicle due to natural disasters. These natural disasters can include earthquake, typhoons, flood, falling object, animal contact and so on.

6. Comprehensive plus Excess Bodily Injury Coverage

This package includes all the items mentioned in the Comprehensive Car Insurance and includes medical coverage for yourself as the driver. Some policies include medical coverage for your passengers too. The payout will cover hospitalization, treatment as well as general compensation.

The amount of premium and payout coverage depends on the companies that offer them.

Different insurance companies offer different car insurance policies, most of which resemble the above descriptions. However, there are many car insurance packages that are a customized combination of the elements mentioned above. They will all have the basic CTPL coverage and can add on various other coverage like first-party, VLPT, AOG, vehicle services, medical coverage and so on in different combinations.


Buying The Best Insurance

When buying insurance for your vehicle that is more than the basic CTPL, you’ll have to read the policy carefully. Another consideration is of course how much annual premium you can afford. The higher your premium payments, the higher your coverage rate or payout will be in the event of an accident or event.

These are some of the policies offered by the top Insurance brands in the Phillippines and their annual premium.

Insurance CompanyInsurance Services OfferedAnnual Premium Starting From
FPG Insurance Co., Inc. (Federal Phoenix)Own Damage, Theft ,Compulsory Third Party Liability Cover, Voluntary Third Party Liability – Bodily Injury and Property Damage, Acts of Nature , Accidental Death and Disablement benefits for the driver and passengers , Coverage for burial expenses, Actual In/Out-Patient medical expenses as a result of accident , Roadside Assistance, Additional protection in the event of surgical treatment caused by a covered accidentPHP15,000
Charter Ping An Insurance CorporationCTPL, Acts of Nature, Unnamed Passenger Personal Accident (UPPA), Overturning and malicious damage ,Excess Bodily Injury ,Property Damage , Accidental collision, Fire and explosion, TheftPHP 15,600
Commonwealth Insurance Company (CIC)Carnapping, Acts of Nature, Own Damage, Bodily Injury, Personal Accident, Property Damage, Third Party LiabilityPHP16,300
Standard Insurance Company Inc.Compulsory Third Party Liability (CTPL), Voluntary Third Party Liability (VTPL) / Excess Bodily Injury (EBI), Third Party Property Damage (TPPD), Own Damage (OD), Acts of Nature Coverage , Loss of Use Cover, Theft, Add-On Coverages: Free Personal Accident Insurance Rider (PA Rider), Free Personal Accident Insurance for the Named Insured, Roadside Assistance Program (RAP)PHP 17,800
Malayan Insurance Company, Inc.Own Damage, Third Party Liability Cover ,Personal Accident Cover, Loss of Use Cover, Acts of God Protection; Riots, Strikes, & Civil Commotion Coverage ,Standard Automobile Accessories ProtectionPHP 23,000
Pioneer Insurance & Surety CorporationCompulsory Third-Party Liability (CTPL), Own Damage and Theft, Excess Third Party Liability – Bodily Injury/Death, Excess Third Party Liability – Property Damage, Acts of Nature Cover (AON), Accident Insurance for Passengers , Loss of Use , Personal EffectsBy quotation
BPI/MS Insurance CorporationCompulsory Third Party Liability (CTPL), Voluntary Third Party Liability-Bodily Injury (VTPL-BI) , Accidental Collision ,Theft Fire, Explosion, Lightning and Self-Ignition and Malicious Damage FREE Express Roadside AssistanceBy quotation

 

FPG Insurance Co. appears to have the most affordable starting price for premiums, followed by Charter Ping An and Commonwealth. It is important to remember that the more items you want to be covered, the higher your minimum annual premium will be. Don’t forget to compare all insurance quotes from different insurance companies before you commit to buy a specific policy.


Looking after your car can be costly. In addition to insurance, you often need to spend on maintenance and repair malfunctions. One way you can save on maintenance is to get your car parts online, on sites like Lazada. This way, you only need to pay for the services of a mechanic. You can use our ShopBack Lazada promo vouchers for even lower prices.