How to Use Your Car Insurance in the Philippines

"May insurance naman ako, pero paano ba ito gamitin?" A lot of car owners pay their premium every year and only open the policy after a bangga. That's when the questions start: what do I bring, how much do I pay, and why is the insurer only paying part of the new bumper?

This guide walks you through using your car insurance, from the accident scene to the payment. We used the Insurance Commission's standard Private Car Policy form, its circular on claim documents, and the Insurance Code, all checked on 28 October 2026. Your own policy wording may be different, so keep it handy.

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First, know what your policy covers

The Insurance Commission's standard Private Car Policy form has four sections:

If you only have CTPL, you can only use Sections I and II, and they never pay for your car. Our comprehensive vs CTPL guide explains the difference.

Step by step after an accident

1. Make the scene safe. Check for injuries and call for help if needed.
2. Take photos. The claim documents include photos of the damaged part and a full view of the car showing its plate number. Take them before anything is moved, if it's safe.
3. Get the other driver's details. Name, license, plate number, and their insurer if they'll say.
4. Tell your insurer as soon as possible. The standard form says you must give notice "as soon as possible" with full particulars, and forward any letter, claim or summons right away.
5. Don't drive a car that could get worse. The standard form says if you drive the car before the needed repairs, any extra damage isn't covered.
6. For theft or carnapping, call the police right away. The standard form says you must notify the police immediately.
7. Get a repair estimate. It's one of the basic documents.
8. Submit your documents (see the next section) and keep copies.

Careful with on-the-spot deals

The standard form doesn't cover liability you take on through a private agreement, except an on-the-spot amicable settlement of a minor accident to keep traffic moving. It also says claims you settle yourself without the insurer's prior consent are valid only up to P5,000. Above that, talk to your insurer before you pay anyone.

The documents you'll need

Insurance Commission Circular Letter 2020-92 (14 September 2020) lists the basic documents insurers ask for in motor claims. It was issued partly to ease the burden of getting police reports, which is why the own damage list uses affidavits instead.

Own damage or third party property damage:

• Accomplished claim form
• Affidavit(s)
• Photos of the damage and a full view of the car showing the plate
• Repair estimate
• Photocopy of your driver's license with its official receipt
• Photocopy of the car registration with its official receipt (MVRR)
• Original certificate of no claim from the third party's insurer

Third party bodily injury: claim form, police report or traffic incident investigation report, affidavits, license and registration copies, ID or birth certificate of the injured person, original medical certificate, original medical receipts with prescriptions, and an income tax return as proof of lost income.

Carnapping or total loss: on top of the basics, the original complaint sheet, alarm sheet and certificate of non-recovery from the Traffic Management Group (TMG), as the circular calls it, for carnapping, the full set of keys, the original policy, and a letter of release and cancellation of chattel mortgage from the bank if the car is financed.

The circular also says insurers can relax these requirements, but not make them stricter or more cumbersome. Your insurer's own list may be shorter. Malayan, for example, lists a police report or a notarized affidavit for motor claims.

Participation fee: what it means

The participation fee is the part of each claim you pay yourself. It's another name for the deductible.

The standard form sets it for private cars at 0.5% of the car's fair market value in the policy schedule, with a minimum of P2,000, for each loss from one event. The Commission's tariff also offers higher deductibles in exchange for a premium discount.

Some insurers publish a fixed fee instead. Malayan says its AutoMaster participation fee is fixed at P3,000 for private vehicles like sedans and hatchbacks, and P4,000 for special private vehicles like SUVs, crossovers and pick-ups. Check the schedule of your own policy.

Depreciation: why you don't get the full cost of new parts

When the insurer pays for replacement parts, the standard form says the settlement is the cost of brand new parts minus your share, based on the car's age:

The depreciation schedule doesn't apply to a total loss. In that case, settlement follows the policy's value and fair market value rules.

A worked claim example

This is an illustration using the standard form's rules, not a promise of what any insurer will pay.

• Car: private car, 4 years and 6 months old, fair market value in the schedule P800,000.
• Damage: new parts cost P40,000, and labor is P10,000.
• Depreciation: at over 4 up to 5 years, your share of new parts is 25%, so P10,000.
• Participation fee: 0.5% of P800,000 is P4,000, which is higher than the P2,000 minimum, so P4,000.

If the same car were 2 years old, there would be no depreciation share, and you'd pay only the P4,000 participation fee.

Flood and typhoon damage: Acts of Nature

The standard form excludes damage from flood, typhoon, hurricane, volcanic eruption, earthquake and other convulsions of nature for your own car and property damage cover. It also puts the burden on you to prove a loss wasn't connected to those events. CTPL (Sections I and II) isn't affected by this exclusion.

So for flood or typhoon damage to your own car, you need Acts of Nature (AON) cover. The Commission's tariff lists it at a minimum rate of 0.50% of the sum insured. Some insurers include it in their main product. Malayan lists Acts of Nature among AutoMaster's benefits, and Oona's car insurance page lists Acts of Nature damage as covered.

If your car is caught in a flood, tell your insurer right away and don't drive it before it's checked, since extra damage from driving it may not be covered.

How long the insurer has to pay

Section 249 of the Insurance Code says non-life claims must be paid within 30 days after the insurer receives proof of loss and the amount is agreed or settled by arbitration. If the amount isn't agreed within 60 days of receiving proof of loss, the insurer must pay within 90 days of receipt. Late payment earns interest unless the claim is fraudulent.

For CTPL, Section 398 says the insurer must pay within five working days after reaching an agreement with the claimant. The no-fault indemnity, P30,000 per person under IMC 2024-01, is paid without proving fault.

If your claim is denied

The standard form says disputes should first go to mediation, administered by the Insurance Commission or a recognized mediation institution. It also says if a claim is denied and you don't file an action within one year of the denial, the claim is considered abandoned, and asking for reconsideration doesn't pause that year. Note the date on any denial letter.

Buying a policy: documents insurers ask for

Using car insurance starts with buying it correctly. Malayan's AutoMaster page lists these documents, which is a typical set:

• Photo of the official receipt and certificate of registration
• Sales invoice, for brand new cars
• Photos of the car (front, rear and sides)
• Valid ID of the owner
• Deed of sale, for second-hand owners

Malayan says AutoMaster is for private vehicles no more than 8 years old. Other insurers set their own age limits. Answer the application honestly, since the Insurance Code lets an insurer rescind a policy for concealment, and tell your insurer about changes to the car.

Frequently asked questions

What does participation fee mean in car insurance?

It's the part of each own damage claim you pay yourself, also called the deductible. The Insurance Commission's standard form sets it at 0.5% of the car's value, minimum P2,000, for private cars. Some insurers use a fixed fee.

How much is Malayan's car insurance participation fee?

Malayan says its AutoMaster participation fee is fixed at P3,000 for private vehicles like sedans and hatchbacks, and P4,000 for special private vehicles like SUVs, crossovers and pick-ups, as listed on 28 October 2026.

Paano gamitin ang car insurance pag nabangga?

Kunan ng litrato ang sira at ang buong sasakyan na kita ang plate number, sabihan agad ang insurer, at kumuha ng repair estimate. Then submit the claim form, affidavit, license and registration copies, and the other insurer's certificate of no claim if there is one.

Do I need a police report for a car insurance claim?

For own damage claims, the Insurance Commission's Circular Letter 2020-92 lists affidavits, not a police report. Police reports are on the list for bodily injury, death and carnapping claims. Check your insurer's list too.

Does car insurance cover flood damage?

Only if your policy has Acts of Nature cover. The standard form excludes flood and typhoon damage to your own car without it.