Step-by-step guide to renewing your car insurance in the Philippines

Is it essential to renew your car insurance policy? Isn’t it a one-time thing, necessary for the LTO vehicle registration? These are some of the common queries policyholders often have, and we will address them here, discussing car insurance renewal in the Philippines.

Car ownership comes with specific responsibilities, one of which is getting insurance and keeping it up to date. Whether you use your car daily or occasionally, having insurance throughout is a must, which requires timely renewal. Doing so ensures financial protection, compliance with the law, and a free driving experience.

However, the biggest hurdle is forgetfulness that many Filipino car owners display when it comes to car insurance renewal. So, either they’d mess with the renewal date or fail to check and compare quotes or coverage options at the time of renewal.

So, without any delay, let’s begin the unfolding of the car insurance renewal process and more.

Understand your car insurance policy

Before moving on to understand car insurance renewal, it is better to brush up on your knowledge about your own policy and car insurance in general. Why? It is essential to know what coverage you currently hold and if it still meets your needs.

First, there is the Compulsory Third-Party Liability (CTPL) insurance, which, if you don’t remember, is mandatory and required by the LTO for vehicle registration. As for coverage, it covers third parties against bodily injuries or death.

Next up is comprehensive insurance, which is optional but highly recommended for its wide coverage, including protection against accidents, theft, fire, flood, vandalism, etc.

Note that the coverage offered by comprehensive insurance varies from insurer to insurer, so make sure to check what protection your provider offers. If anything is missed, you can inquire about add-on coverage.

Your insurance coverage must match your driving requirements; you should neither be over- nor underinsured.

Car insurance renewal

What is a car insurance renewal? It is a process wherein you extend/renew your car insurance agreement with the provider, preferably before the end of the validity period (that’s usually one year from the date of purchase).

Benefits of timely renewal

Legal compliance - With up-to-date CTPL insurance, you remain legally roadworthy.
Financial security & peace of mind - You enjoy continuous protection against accidents, theft, and natural disasters.
Hassle-free LTO registration - Timely renewal prevents delays and ensures smooth processing.
Better premium rates - Several providers offer loyalty benefits and discounts to applicants with consistent renewal.

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Consequences of not renewing the policy on time

Financial burden in case of car damage due to an accident - car repair, hospital, and medical bills.
Lapse of coverage, if your policy expires, you are left unprotected.
Legal issues with LTO arise because the office won’t process registration without an active and valid CTPL insurance.

Also Read: Top 10 must-have car insurance add-ons for Filipino drivers

Car insurance renewal: Step-by-step guide

Here’s a complete guide to renewing your car insurance policy in the Philippines -

Step 1: Review your insurance policy coverage

Take time out and go through your insurance policy thoroughly. Here, you are required to check the coverage, inclusions, and exclusions.

Ask yourself this question: Does this policy offer optimum coverage as per your driving needs and budget?

Step 2: Check the policy’s expiry date

While reviewing your car insurance policy, ensure you check the expiry date, mark it on your calendar, and set renewal reminders. This will avoid a lapse in coverage.

Step 3: Compare quotes

As you approach the renewal date, ensure you compare insurance quotes from multiple providers. Take into consideration factors like coverage, premium, customer service, and claim process. You see, it is not wise to stick to the same provider when better and cheaper options are available.

Step 4: Complete the paperwork

Once the provider reaches out, contact them directly through an agent or online. Please complete the renewal/application form along with the following documents: current policy, OR/CR, valid government ID, and driver’s license.

Step 5: Premium payment

After completing the formalities, it’s time to settle your premium payment, which can be done via online banking, credit card, GCash, PayMaya, or over the counter at a partner bank.

Step 6: Receive and verify the policy

Once the payment is confirmed, the insurer will send the renewed policy. Here, you are required to read the fine print, check for personal & vehicle details, coverage, insured amount, policy dates, and other crucial information.

Also Read: What happens when your policy expires? Renewal tips & reminders

Car insurance renewal: Mistakes to avoid

Here are some common mistakes policyholders should avoid when renewing car insurance -

Missing the renewal deadline - Taking the car insurance expiry date lightly is one of the biggest mistakes of a policyholder. A further blunder is letting the policy expire even for a day - this will leave you unprotected and cause issues during LTO registration.
Not reviewing policy - As mentioned before, make sure to read the insurance policy thoroughly; check the inclusions and exclusions.
Prioritising cost over coverage - Do not choose a policy just because it’s cheap. It is recommended to always go for a policy that offers optimum coverage.

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Also Read: Top car insurance worries Filipino drivers face - and how to fix them

Cost of car insurance renewal

How much does a car insurance renewal cost? There is no fixed answer, as several factors affect the renewal premium, including the model, make, & age of the car, the type of coverage, driving history, and any opted add-ons.

Est. renewal cost

CTPL: PHP 300 to PHP 1,500 per year

Comprehensive insurance: Typically, 2% to 3% of the car’s fair market value

Car insurance renewal & digitalisation

Adding to policyholders’ convenience, insurance providers now offer the facility of online renewal via dedicated platforms and mobile apps. These digital channels are fast & convenient, offer instant issuance of e-policy, and multiple payment options.

Also Read: Car insurance endorsements simplified: A guide to smarter coverage

Bottom line

Car insurance is a vital part of the car ownership journey in the Philippines. It not only offers financial protection but is also a legal requirement for LTO registration. Now, a car insurance policy, like others, comes with an expiry date and therefore requires it to be renewed on time. Failing to do so will lead to consequences, including lapse of policy, loss of coverage, and failure to renew registration.

In this article, we have discussed in detail how to renew a car insurance policy, which is not at all a complicated process. Just follow the steps mentioned and renew your policy by submitting the required documents and making timely payments. Doing so will ensure uninterrupted coverage and peace of mind.

However, before renewing your policy, make sure to compare quotes from different providers and evaluate your coverage requirements - both under- and over-protection is unhealthy.

FAQs

Q1. When should I renew my insurance policy?
Ans. It is recommended to do so at least 1 to 2 weeks before the policy expires.

Q2.What happens if my car insurance policy expires?
Ans. Well, in that case, you will lose your policy, the coverage, and there is even the risk of penalties.

Q3. Can I switch my insurance provider during renewal?
Ans. Yes, a policyholder is free to switch their insurance provider during renewal or even mid-term.

Q4. Is CTPL insurance all that a car owner needs in the Philippines?
Ans. CTPL insurance is mandatory in the Philippines; all motor vehicle owners must get it. It only offers coverage against third-party bodily injury or death, with no protection for the policyholder or the vehicle; therefore, it is insufficient.

Q5. How much would I have to pay for CTPL insurance?
Ans. The cost of CTPL insurance in the Philippines varies depending on the vehicle. For instance, the range for motorcycles is between PHP 300 and PHP 500, and for private cars, it is between PHP 300 and PHP 1,500 per year.

Q6. What documents are required for policy renewal?
Ans. To renew an insurance policy, you usually require the following: a Driver’s license, OR/CR, and the old policy.

Q7. During renewal, do I have to bring my car for inspection?
Ans. Usually, old cars or cars with major repairs are called in for inspection. However, it depends on your insurer and their policy.

Q8. Can I renew the insurance online?
Ans. Yes, many insurance providers these days offer the facility for online policy renewal, via apps, websites, or third-party platforms.

Q9. Will my premium increase at the time of renewal?
Ans. The premium of the renewed policy depends on several factors, such as your claim history, driving record, and the car’s condition.

Q10. Can I pay an insurance premium in instalments?
Ans. It depends on your insurance provider's premium policy, which may offer the option of monthly or quarterly payments.

Q11. Does car insurance renewal affect LTO registration status?
Ans. Yes. LTO requires proof of CTPL insurance for all vehicles to facilitate registration and legal driving. Further, at the time of registration renewal, LTO requires you to submit a valid CTPL insurance policy.

Q12. Which is better: renewal via an agent or online?
Ans. Both the renewal processes are valid and acceptable; while online renewal is quick, the agent offers personalised assistance.

Q13. What to do if I miss the policy renewal date?
Ans. If you have missed the insurance renewal date, it is advisable to contact your insurance provider immediately. You are most likely to get a grace period to renew the policy without penalty.

Q14. What if the policy grace period gets passed without renewal?
Ans. Suppose you do not renew the policy during the grace period. In that case, you will face several consequences, including loss of coverage, loss of No-Claim Bonus, potential legal issues, and a higher premium on a new policy.

Q15. Is it possible to renew a car insurance policy without a driver’s license?
Ans. No, to renew your insurance policy, you need to submit your driver’s license.

Q16. Can I add extra coverage at the time of policy renewal?
Ans. Yes, you can add or even remove coverage at the time of policy renewal.

Also Read: Filing a car insurance claim: Key coverage you’ll need after an accident