Driving safe in 2024: Car insurance companies in the Philippines

Navigating the Philippines roads in 2024 comes with a new set of challenges and opportunities, and here, car insurance plays a critical role in ensuring car owners' safety and peace of mind.

In our previous blog, we mentioned the top ten car insurance companies in the country. We witnessed how car insurance companies in the Philippines are stepping up the game with innovative policies, tech-driven solutions, and enhanced customer support to meet the evolving needs of Filipino drivers. And here we are, adding more names to the list, thus bringing you providers offering benefits ranging from usage-based insurance that rewards safe driving to expanded coverage options tailored for modern vehicles.

Doesn't matter if you’re a new driver or a seasoned one; discover what makes these companies stand out in 2024 and how they can help you drive safely in a rapidly changing world. But first, let’s learn some basics (seasoned drivers can skip).

What is car insurance?

Car insurance is a contractual agreement between the car owner (policyholder) and the insurance provider. Here, the insurance company takes financial responsibility for loss due to an auto accident or other circumstances against payment of regular premiums.

Why is car insurance necessary?

In the Philippines, a car owner must secure Third Party Liability (CTPL) Insurance. It is a mandatory coverage by law that ensures that drivers can compensate others for injuries caused due to their negligence. However, often, CTLP is not enough as it does not extend beyond bodily injury liability coverage (medical expenses, legal fees, rehabilitation costs) of the third party. Enter Comprehensive Insurance, which ensures that even your vehicle is financially protected. It is typically optional and covers damages to the policyholder’s vehicle arising from collision and non-collision incidents like fire, theft, vandalism, animal collision, falling objects, and natural disasters.

Where to purchase car insurance?

A car insurance applicant can get himself a policy through various avenues, including directly from the insurance company, insurance agent & brokers, and the online marketplace. Now, each of these options comes with its own set of advantages, disadvantages, and considerations.

Car insurance providers in the Philippines

Standard Insurance Company, Inc.

A leading name in the Philippines, Standard Insurance has over 65 years of experience and a strong partnership with the Zurich Insurance Group.

Coverage options: Comprehensive insurance includes protection for own damage, theft, Acts of Nature (AON), third-party liability (CPTL), excess bodily injury, and personal accident benefits. Additional coverage for roadside assistance and loss-of-use is also available.

Best for: Drivers seeking extensive coverage and reliability, especially for high-risk areas prone to flooding.

Cost: Starts at approximately PHP 9,000/year for basic models

Customer care: Offers robust online support and easy claims processing via digital platforms.

Advantages	Disadvantages
Broad coverage, including natural disasters, is essential for a typhoon-prone country. Efficient online claims process	Premiums can be slightly higher compared to competitors.

Mercantile Insurance Co., Inc.

With a reputation for reliability, Mercantile Insurance offers customizable packages for personal and commercial vehicle owners. They emphasise tailored solutions to fit varying driver needs.

Coverage options: Offers comprehensive plans covering own damage, theft, and AON. Liability and passenger injury are available as add-ons.

Best for: Fleet owners and budget-conscious individuals.

Cost: Moderate pricing with options for additional coverage.

Customer care: Decent but lacks extensive online presence.

Advantages	Disadvantages
Tailored packages for corporate and private clients. Competitive pricing.	Limited digital tools for customer support.

Stronghold Insurance Company, Inc.

One of the oldest and most stable insurers in the country, Stronghold focuses on affordability and essential protections. Its offerings cater primarily to individuals seeking reliable but straightforward insurance solutions.

Coverage options: Focuses on essential protections, including basic liability and third-party property damage.

Best for: New drivers or those seeking basic and affordable coverage.

Cost: Among the most budget-friendly.

Customer care: Reliable in-person support but limited online tool

Advantages	Disadvantages
Affordable premiums. Simple policy structures.	Limited add-ons like AON or extended liability

SGI Philippines General Insurance Co.

SGI Philippines stands out for its accessible policies and broad market reach. Known for its efficient claims process and digital tools, the company caters to modern-day driver needs.

Coverage options: Comprehensive plans with options for extended liability and personal accident insurance.

Best for: Tech-savvy individuals looking for convenience.

Cost: Moderate, dependent on vehicle type.

Customer care: Effective digital platform support.

Advantages	Disadvantages
Simplified digital claims filing. Competitive pricing for comprehensive coverage.	Limited availability outside major cities.

Oona Insurance (formally MAPFRE Insurance)

Rebranded from MAPFRE, Oona is known for its robust global experience combined with localised expertise. They offer comprehensive policies ideal for various vehicle types and driver profiles.

Coverage options: Comprehensive insurance with broad protection against own damage, theft, AON, and third-party liabilities.

Best for: Drivers seeking premium features and service quality.

Cost: Starts at PHP 12,000/year for mid-range vehicles.

Customer care: 24/7 support and online management​

Advantages	Disadvantages
Advanced digital platforms for claims and policy management. Exceptional customer support.	Premium pricing compared to local brands.

Pacific Cross Insurance, Inc.

Pacific Cross, a reputable provider of health and motor insurance, offers reliable car insurance policies. Its focus on customer care and transparent claims process sets it apart.

Coverage options: Comprehensive auto plans bundled with health insurance.

Best for: Drivers prioritising health and vehicle insurance in one policy.

Cost: Premiums vary based on bundled services.

Customer care: Strong support for medical-related claims.

Advantages	Disadvantages
Integrated health and vehicle protection. Ideal for medically inclined drivers.	Limited focus on standalone car insurance.

Paramount Life & General Insurance Corporation

Paramount Life has diversified its offerings to include motor insurance, which provides competitive rates and flexible policy terms.

Coverage options: Offers passenger liability, comprehensive damage protection, and fleet insurance.

Best for: Business owners managing vehicle fleets.

Cost: Varies widely for corporate clients.

Customer care: Dedicated support for corporate accounts.

Advantages	Disadvantages
Focus on fleet management. Broad liability coverage.	Limited digital features.

Federal Phoenix Assurance Co., Inc.

Federal Phoenix Assurance has been recognized for its proactive customer service and commitment to prompt claims resolution.

Coverage options: Comprehensive packages with quick claim options for third-party and own damage.

Best for: Drivers seeking swift claims and repair services.

Cost: Moderate to premium pricing.

Customer care: Strong repair shop partnerships

Advantages	Disadvantages
Rapid claims processing. Extensive repair shop network.	Limited innovation in coverage options.

Cebuana Lhuillier Insurance Solutions (CLIS)

This one is the latest entry in the Philippines car insurance market. It is known for its microinsurance products, including affordable car insurance options.

Coverage options: Basic liability and optional AON coverage.

Best for: Budget-conscious drivers in rural areas.

Cost: Affordable for basic coverage.

Customer care: Excellent in-person support via the branch network.

Advantages	Disadvantages
Highly accessible via nationwide branches. Affordable premiums.	Limited coverage options for comprehensive needs.

People’s General Insurance Corporation

People’s General Insurance is a trusted name for its extensive network and customer-first approach.

Coverage options: Liability and basic comprehensive plans.

Best for: Cost-conscious individuals seeking straightforward policies.

Cost: Among the lowest in the market.

Customer care: Adequate for basic claims.

Advantages	Disadvantages
Budget-friendly. Basic coverage for essential needs.	Minimal add-ons and limited premium features.

PGA Sompo Insurance Corporation

PGA Sompo Insurance, backed by Sompo Japan, offers reliable car insurance options with a global perspective.

Coverage options: Comprehensive and customizable, including AON and passenger liability.

Best for: High-income drivers seeking top-tier protection.

Cost: Higher-end pricing.

Customer care: Exceptional support.

Advantages	Disadvantages
Global standards in insurance. Extensive local and international coverage	Premium pricing.

BDO Insurance Brokers, Inc.

As part of one of the largest financial institutions in the country, BDO Insurance Brokers ensures top-notch car insurance solutions for individuals and businesses.

Coverage options: Aggregates policies from top insurers for comparison.

Best for: Customers seeking an all-in-one broker service.

Cost: Vary depending on the chosen policy.

Customer care: Excellent, with access to BDO resources.

 

Advantages	Disadvantages
Tailored recommendations based on customer needs. Convenient access to multiple providers.	Dependent on partner company capabilities.

What to consider when choosing car insurance in the Philippines?

Here’s some advice as to what a prospective car insurance applicant must consider before making the final call on the insurance provider.

• Coverage scope: Make sure the policy includes CTPL, comprehensive damage, acts of nature, and theft.
• Financial strength: It is essential to verify the company's capacity to fulfill claims.
• Customer support: Always opt for an insurance provider that offers 24/7 assistance.
• Technology integration: It only adds to a policyholder’s advantage if the insurer has a mobile app and digital claim option, as it only makes the process seamless and fast.
• Reputation: Go through the reviews and do check the Insurance Commission ranking for all prospects. It will make your job much easier.

Key safety tips for driving

A good driver should not only keep his license and insurance policy in check but should practice proper road safety measures. Here are a few tips that make sure you are always on the right side of the law.

• Regular vehicle maintenance: It is advisable to schedule routine check-ups for your car, this will ensure optimal performance at all times.
• Adopt defensive driving: A good diver should anticipate potential hazards and avoid distractions at all costs.
• Follow traffic laws: No questions asked, adhere to the speed limits, use seat belts, and respect the road signs. That will ensure others and your safety on the road.
• Be weather-wise: A Filipino driver is expected to be able to drive wisely in situations like heavy rain or poor visibility.
• Emergency preparedness: Always keep essential items like a first-aid kit and tools in your car, you never know what might come in handy.

Bottom line

Each of these car insurance providers has its unique strengths, with Pacific Cross’s personal approach to OONA’s digital-first model. Drivers in the Philippines can compare options based on coverage, benefits, and convenience to choose the most suitable provider for their needs. It should be noted that comprehensive insurance is more than a legal requirement—it’s a vital step towards safe and worry-free driving.

Also Read: Renewing car insurance in the Philippines: A practical guide