Get a Digido loan to buy a car insurance!

In this article you will learn all about car insurance in the Philippines. We compared the terms and conditions of different companies and explained how car insurance is useful. And if you don’t have enough money to buy insurance, you can get a loan from Digido for up to 25,000 pesos for up to 1 month.

Key takeaways:

  • Car Insurance in the Philippines is a very useful option.
  • You can consider several options for buying life insurance and choose the best one.
  • And if you don’t have enough money to buy an insurance policy, you can take out a loan of Digido.
  • Every Filipino has access to Digido loan up to 25,000 pesos for up to 1 month.

The Best Car Insurance Philippines

Having a car is convenient in so many ways, especially during this time of the pandemic. You don’t have to ride a jeepney or any public transportation and be at risk of COVID-19. Plus, you can go anytime you want. Sounds pretty cool, right? However, of course, uncertainties may also happen on the road.

Once you get into the road and drive, being vigilant is sometimes not enough. Accidents happen even if you are the best driver of all time. That is why modern cars nowadays have safety measures for drivers as well as for passengers. However, those safety measures do not keep your beloved, brand new vehicle safe. When you drive it, you are also putting it at risk of damages.

Car repairs and maintenance can be costly and even drain your savings. And since that is a brand new car, you probably still have monthly amortization of your car loan. Now, that doesn’t sound cool. But with car insurance, you can save yourself of getting broke.
Interested? Then, let’s talk about it.

Why do I Need a Car Insurance?

You may have asked yourself that question when purchasing a car. Some people buy things they want but do not necessarily understand their nature and purpose. If you plan to buy a vehicle, the law will require you to get auto insurance. It is mandatory before driving on public roads. But you must understand why you need it in the first place, not just because it is a requirement.
Going back to the topic, it’s obvious that you don’t want to incur huge losses in the future. Nobody wants that as well. And nobody wants to get into accidents or get their cars scratched or dented, or even worse, their engine damaged.
But you know, life is full of uncertainties. It is always better if you have a safety net to fall on when things get rough on your end. Taking care of yourself and your car is just a little step to good financial health. And that is the reason why you need the best car insurance. It is for you to have financial protection to your property and  any liability. Car insurance is compulsory in the Philippines, specifically the Compulsory Third Party Liability (CTPL). This is a government car insurance policy that covers both private and government vehicles.

How Car Insurance Works

Essentially, a car insurance works just like any other kind of insurance. It is a pre-need product in the form of a contract that you purchase an insurance company. And in return, they will provide you with financial protection against any car damages and even injuries of vehicular accidents.
There are different types of the best car insurance Philippines with various scopes of coverage. Typically, the coverage ranges of property damage, theft, body injuries, and even death. The premium payment depends on the type of insurance you choose that suits your needs. If an accident happens, the insurance company will verify and check if your car insurance policy covers the event. Once verified and approved, the insurance company will help you mitigate the costs you incurred in the accident.

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Types of Car Insurance

Now, let’s see which type of car insurance suits your needs:

1. Compulsory Third Party Liability (CTPL)

The Philippine Law requires Compulsory Third Party Liability (or CTPL) upon the registration of the vehicle. The Land Transportation Office (LTO) automatically provides CTPL  (Compulsory Third Party Liability) to the owner. It covers the expenses of the accident caused by the policyholder. Additionally, it also shoulders the liability resulting in the third-party’s bodily injuries or even death.

2. Comprehensive Car Insurance

With Comprehensive Car Insurance, you will have additional protection. It covers the cost of damages of the owner’s and the third-party’s property and the excess of bodily injury beyond CTPL. Plus, this type of insurance (Comprehensive car insurance) also includes external explosions, self-ignition, theft, and other malicious acts to the insured property.

3. Collision Car Insurance Coverage

Regardless of the cause, this insurance will shoulder the cost of damages to the owner’s car in an accident. There are cases that the cost of the repair is greater than the value of the vehicle. If this happens, the insurance company will replace it with another vehicle based on its current market value.

4. Personal Injury Protection Coverage

The Personal Injury Protection insurance is not the typical medical insurance. Its scope of coverage is broader, as it includes the expenses caused by sustained injuries. Examples are loss of work, lost wages, funeral expenses, and rehabilitation costs. This insurance provides financial protection to the policyholder regardless of the cause of the accident.

5. Medical Payments Coverage

This type of car insurance shoulders the medical expenses of the parties involved in the accident. Either it is the policyholder or the third-party, the insurance secures the medical payments, regardless of who is at fault.


  • How much is the car insurance in the Philippines?
    On average, the cost of good car insurance ranges PHP 12,000 - PHP 20,000 a year. That's more like PHP 1,000 a month.
  • Is car insurance mandatory in the Philippines?
    Car insurance is compulsory in the Philippines, specifically the Compulsory Third Party Liability (CTPL). This is a government insurance policy that covers both private and government vehicles.
  • What kind of insurance do I need for my car?
    Three of the most important types of auto insurance for you are liability, comprehensive and collision coverage.

Pros and Cons of Car Insurance

Of course, all financial decisions have pros and cons. And weighing them based on your priority will help you make a sound decision. So, here are the pros and cons of having best car insurance Philippines:


  • It will provide you financial protection against damages and accidents associated with your insured vehicle.
  • It will give you peace of mind as your savings will be free  danger when an accident or damage occurs.
  • You may save a lot of money by not paying the auto-related accident or damage expenses.
  • You’ll save time and effort in dealing with the problem as the insurer will take care of all the work.
  • It will also free you worries of theft and damages due to natural calamities.


  • Of course, you must pay the premium of your insurance based on the type you chose.
  • You need to pay initial fees other than your premium. Typically, these are deductibles.
  • The insurance you have might not cover other types of damages.
  • There is a tendency that you will not utilize all your insurance coverage (which is essentially a good thing).

How much does Best Car Insurance Cost in the Philippines?

Since the CTPL is mandatory in the Philippines, you must prepare Php 560-1,450, depending on your vehicle type. The Insurance Commission provides CTPL rates based on each vehicle type owned by the policyholder. Aside  CTPL, you can still get comprehensive car insurance to get additional protection that suits your needs.

Typically, an average car insurance company in the Philippines offers between Php 12,000 to Php 20,000 annually. The cost can be higher since it depends on the insurance company’s pricing. Rates vary as well, depending on the model of your vehicle. If it is a bigger and more expensive vehicle, you might pay more than what you expect.

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List of Best Car Insurance Companies in the Philippines

There are several auto insurances existing nowadays. However, only a few of them can be part of the best car insurance companies in the Philippines. Here is the list of car insurance in the Philippines that you may consider getting:

1. Western Guaranty Corporation

This insurance company is one of the top car insurance providers here in the Philippines. They are also stable and trusted non-life insurance companies. They offer good deals to all vehicle owners, such as a free 24-hour roadside assist program. Additionally, they also accept up to 10-year old cars. Thus, even if you purchase a secondhand vehicle, you still get auto insurance for it.

2. FPG Insurance

So far, FPG Insurance is the cheapest your car insurance company in the Philippines. Their Auto Shield Plus product is only Php 15,013.88 total annual premium. FPG Insurance offers broader coverage such as free Auto Passenger Accident Insurance worth Php 50,000 each for 5 persons. They also cover free 24/7 roadside assistance and accept up to 10-year old cars. Additionally, they have 242 accredited repair shops. FPG Insurance accredited car repair shops are available to customers in all cities in the Philippines.

3. Etiqa Life and General Assurance Philippines

This insurance company is under Maybank and has developed outstanding credibility in the Philippines. Additionally, they are one of the leading insurers for various companies in the country. They offer free towing assistance up to Php 5,000, and they have 147 plus accredited repair shops. They also provide free Auto Passenger Accident Insurance worth Php 50,000 each for 5 persons.

4. The Mercantile Insurance

Just like the previous insurances mentioned above, the Mercantile Insurance also offers free Auto Passenger Accident Insurance. And it is also worth Php 50,000 each for 5 persons. They accept 10-year old cars as well and have 11 plus accredited repair shops. Additionally, your car insurance company is most of the government agencies’ top choice.  There are Mercantile Insurance Accredited Repair Shops all over the country which can be used by customers of this insurance company.

5. Oriental Assurance Corporation

The Oriental Assurance Corporation has assorted both private and commercial non-life insurance products. They also offer free Auto Passenger Accident Insurance worth Php 50,000 each for 5 persons. Additionally, they provide free Roadside Assistance Coverage for qualified vehicles. Other than that, they accept 10-year old cars and have 74 plus accredited repair shops.

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How to Get Money for Car Repairs?

As a vehicle owner, you know exactly how important it is to have car insurance. However, not everyone has available funds to get the insurance right away.

And if you don’t have any of it, and unfortunately your car needs repair, Digido can help you.

With Digido, you get an online loan up to Php 25,000 within 4 minutes only. It provides tremendous convenience as they do not require any guarantor, documentation, or guarantee deposit. No doubt, Digido is the best option you can have to get money for car repairs.

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Written by: Sean Martin D. Plantado

Author pages:
Sean Martin Plantado is the head of Customer Care Dept. and Online Sales Dept. of Digido Finance Corp. creating articles, blogs, and other learning mediums that helps Filipinos struggling on their financial literacy. Sean also loves Cycling, Photography, Cinematography, Online gaming, Fine Arts, and dreams of becoming a Doctor of Veterinary Medicine.

Reviewed by: Rafael Hular

Author pages:
Rafael “Raffy” L. Hular is, the Finance and Accounting Manager. of Digido Finance Corp., monitoring and controlling the flow of cash that comes in and out of the company to meet the company’s business needs, preparing the financial reports and analysis of income and expenses, and monitoring tax compliance.  Raffy loves reading Japanese comics called manga and watching Japanese animated cartoon series. He dreams of establishing his own Accounting and Auditing Firm and teaching in a University.