In short
Add 12.5% documentary stamp tax (NIRC Sec. 184 (official source)), 12% VAT and up to 0.75% local government tax on that premium.
The Insurance Commission motor tariff (official source) sets own damage and theft at 1.25% to 3.75% of value, as of 1 January 2015. On a ₱1,000,000 car, that line alone is ₱12,500 to ₱37,500 a year before add-ons and taxes.
- Own damage and theft rate
- 1.25% to 3.75% of insured value (IC tariff, as of 1 January 2015)
- Acts of nature add-on
- 0.50% of value, IC tariff minimum as of 1 January 2015
- Documentary stamp tax
- 12.5% of premium (NIRC Secs. 184 and 185)
- VAT
- 12% of premium (NIRC Sec. 108)
- Local government tax
- Up to 0.75% of premium, by city or town (Local Government Code Secs. 143(f) and 144, since 1992)
- Billing
- One annual premium; the policy runs one year
- CTPL for comparison
- ₱560 a year, taxes included (IC Memorandum Circular 4-2006, for policies issued from 1 January 2007)
The car insurance formula, line by line
Every policy schedule under the IC standard Private Car Policy (official source) lists the same premium lines. IC Memorandum Circular 2022-02 made that form mandatory from 1 July 2023.
Each cover you buy has its own line, then three taxes sit on top. Add them in this order and you get the Total Amount Due on your quote.
The sum insured is your own estimate of the car's fair market value, written in the schedule. It is also the most the insurer pays if the car is stolen or wrecked.
Set it too high and you pay a premium on value you can never claim. When your working matches the Total Amount Due on the quote, you know every line is there.
A gap points to a cover or tax you left out. Each line has a lever that lowers it, listed in how to get the cheapest car insurance.
| Line | How it is priced | Basis |
|---|---|---|
| Sum insured | Your estimate of fair market value | IC standard policy schedule |
| Own damage and theft | Sum insured x rate | IC tariff as of 1 Jan 2015: 1.25% to 3.75% |
| Acts of nature (optional) | Sum insured x rate | IC tariff as of 1 Jan 2015: 0.50% minimum |
| Excess bodily injury | Fixed premium per limit | IC tariff as of 1 Jan 2015: ₱195 at ₱50,000 up to ₱1,050 at ₱1,000,000 |
| Property damage | Fixed premium per limit | IC tariff as of 1 Jan 2015: ₱975 at ₱50,000 up to ₱2,235 at ₱1,000,000 |
| Auto personal accident (optional) | Per seat, set by the insurer | Insurer's own rate |
| Documentary stamp tax | 12.5% of total premium | NIRC Secs. 184 and 185 |
| VAT | 12% of total premium | NIRC Sec. 108(A) |
| Local government tax | Up to 0.75% of total premium | LGC Secs. 143(f), 144, 151 |
5 of 5 still to check
Worked example: a ₱1,000,000 car at a 1.50% rate
This is arithmetic on a stated car value and a rate inside the IC range. It is an example, not a market figure.
Your insurer quotes its own rate, so swap in yours in the calculator above. Lining up two quotes on these same lines is covered in how to compare car insurance quotes.
The car is insured for ₱1,000,000 with acts of nature, ₱100,000 excess bodily injury and ₱100,000 property damage. The taxes add ₱5,394.67, about a quarter of the premium.
Each tax is rounded to the centavo, the way the IC's own CTPL table rounds them. To test your own quote, enter its sum insured and rate in the premium calculator on this page and compare totals.
| Line | Working | Amount |
|---|---|---|
| Own damage and theft | ₱1,000,000 x 1.50% | ₱15,000.00 |
| Acts of nature | ₱1,000,000 x 0.50% | ₱5,000.00 |
| Excess bodily injury, ₱100,000 | IC tariff | ₱270.00 |
| Property damage, ₱100,000 | IC tariff | ₱1,095.00 |
| Total premium | Sum of the lines above | ₱21,365.00 |
| Documentary stamp tax | 12.5% x ₱21,365 | ₱2,670.63 |
| VAT | 12% x ₱21,365 | ₱2,563.80 |
| Local government tax | 0.75% x ₱21,365 | ₱160.24 |
| Total amount due | Premium plus taxes | ₱26,759.67 |
The same working on CTPL gives the IC's fixed price: a ₱447.11 basic premium plus ₱55.89 DST, ₱53.65 VAT and ₱3.35 LGT equals ₱560.
Work out what your premium adds up to
Example value to start. Pick your car or type the value your insurer uses.
The percentage on your quote.
Bodily injury, property damage and personal accident premiums from your quote.
Set by the city or municipality, up to 0.75%. The IC's CTPL table uses 0.75%.
Own damage and theft on a ₱1,000,000 car
₱15,656.25 to ₱46,968.75 a year
The IC motor tariff band of 1.25% to 3.75% of the car's value, as of 1 January 2015, with stamp tax, VAT and local tax added. The rate on your quote decides your actual premium. Acts of nature, bodily injury and property damage cost extra.
The tax working, on the CTPL premium for a private car
- Basic premiumCTPL premium, private car (IC tariff)
- ₱447.11
- Documentary stamp tax12.5% of basic premium (NIRC Sec. 184)
- ₱55.89
- VAT12% of basic premium (NIRC Sec. 108)
- ₱53.65
- Local government tax0.75% of basic premium
- ₱3.35
- Total for the year
- ₱560.00
Type the rate or premium on your quote to see your own total. The CTPL total here matches the Insurance Commission's ₱560.00.
Is car insurance paid monthly or yearly?
Yearly. A comprehensive policy runs for one year and the schedule shows one annual premium.
Pioneer's online policy, for example, lasts one year from the day you pay.
Some insurers let you split that annual premium. BPI MS (official source) offers installments to holders of BPI, BDO, HSBC, RCBC and Robinsons Bank credit cards, as of October 2026.
Spread evenly, the ₱26,759.67 example above is ₱2,229.97 a month, and the calculator shows that monthly figure for your own numbers. CTPL is also annual, except a brand-new car can take a 3-year CTPL at ₱1,610.
- Policy period
- One year, renewed each year
- Premium shown on the schedule
- One annual Total Amount Due
- Installments
- BPI MS, through BPI, BDO, HSBC, RCBC and Robinsons Bank credit cards
- CTPL term
- 1 year, or 3 years for a brand-new car
Toyota, Mitsubishi or an SUV: does the brand change the price?
Not through the rate table. The IC tariff has one own damage and theft range for every private car.
A dual-purpose body, such as a pick-up with passenger seats, is rated as a private car. What changes the premium is the value you insure, the rate your insurer quotes, and the deductible.
So a Toyota Fortuner costs more to insure than a Toyota Wigo mainly because it is worth more. Find the price of your model on our car prices page, then put it in the calculator.
Insurers also limit the age of the cars they quote online, which matters for an older unit. The Malayan and Pioneer profiles carry each insurer's own limits.
Choose a higher deductible if you can pay small repairs yourself, because Pioneer prices it lower. Otherwise keep the standard one.
Under the IC standard policy (official source), the deductible is 0.50% of the insured value, at least ₱2,000, and you pay it on each own damage claim.
| Insurer | Rule |
|---|---|
| Malayan AutoMaster | Deductible ₱3,000 for a sedan or hatchback, ₱4,000 for an SUV, crossover or pick-up; cars up to 8 years old |
| AXA | Online: private cars up to 7 years old, value ₱300,000 to ₱5,000,000, selected brands |
| Pioneer | Online: cars up to 10 years old; higher deductible lowers the premium |
| Cocogen Auto Excel Plus | Online: private cars up to 12 years old |
| PhilFirst AutoFirst | Prices on make, model, year, value, use, driver profile and claims history |
Why the same car costs slightly more in some cities
Only the local government tax changes with location. A town may charge insurers up to 0.5% of premium, and Metro Manila towns and cities may go 50% higher, to 0.75%.
On the ₱21,365 example, the gap between 0.5% and 0.75% is ₱53.41.
Location can also limit cover. Pioneer may decline acts of nature cover depending on the registered owner's address.
If it does, ask another insurer before you buy, because the standard policy excludes flood and typhoon damage without that add-on. For the full CTPL price list by vehicle class, see the CTPL guide.