In short
A comprehensive motor policy is a separate requirement the bank adds, because your car is its collateral. Six banks name it as a condition of the loan, not of the law: BPI, BDO, Metrobank, UnionBank, Maybank and EastWest.
- CTPL legal basis
- Republic Act 10607 (Insurance Code), Secs. 387, 389, 390
- Current CTPL third-party liability limit
- P200,000 for all motor vehicle types (IC Memorandum Circular 2024-01)
- Previous CTPL limit, before 2024
- P100,000
- CTPL death indemnity
- P200,000, including burial and funeral expenses
- CTPL no-fault indemnity
- P30,000 for all motor vehicles
- CTPL annual premium, private car (IC tariff)
- P560.00 total, 1-year policy
- Comprehensive insurance premium
- Not stated as a peso figure by any bank or the Insurance Commission
CTPL is the law. A comprehensive policy is your bank's rule.
Republic Act 10607 makes it unlawful to operate a motor vehicle on public highways without proper cover. That cover means a compulsory motor vehicle liability insurance (CMVLI, commonly called CTPL) policy, cash guaranty, or surety bond in force.
The same law bars the LTO from registering or renewing registration without it. You can buy CTPL from any Insurance Commission-authorized insurer.
The statutory floor for a private car is P20,000 for bantam and light vehicles and P30,000 for heavy vehicles in any one accident. The actual benefit limits have since been raised well above that floor.
A comprehensive motor policy is a different thing entirely. No Philippine law requires it to drive a car.
It becomes a condition the moment you take out a car loan, because the bank wants its collateral protected. BPI states this directly.
One of the requirements for a BPI Auto Loan is full vehicle insurance coverage. It cannot be cancelled while the loan is outstanding.
| CTPL | Comprehensive policy | |
|---|---|---|
| Required by | Law (RA 10607) | Your lender's loan contract |
| Covers | Third-party death, injury, property damage | Your own car: theft, fire, collision, Acts of Nature (varies) |
| Current limit | P200,000 (all vehicle types) | Not stated; based on vehicle value |
| 1-year premium (private car) | P560.00, per IC tariff | Not stated as a fixed figure |
| Who requires it | LTO, for registration | BPI, BDO, Metrobank, UnionBank, Maybank, EastWest |
What each bank's own policy has to cover
BDO calls full vehicle insurance a post-approval requirement, covering damage, theft, malicious acts, collision liabilities, fire, personal accident, and natural disasters.
Metrobank's own FAQ names it precisely: a full motorcar insurance policy with Acts of Nature cover, renewed every year until the loan is paid off. EastWest requires a comprehensive policy with Acts of God (AOG) cover from an EWB-accredited insurer.
Maybank and UnionBank both go further in their fine print. Maybank's terms require cover to the vehicle's full insurable value until the loan is fully paid, with the policy naming Maybank as creditor and mortgagee.
UnionBank's own terms require an amount not less than the outstanding loan balance, with a loss payable clause satisfactory to UnionBank. They also require a renewal policy submitted at least 30 days before expiry.
- BDO
- Damage, theft, malicious acts, collision, fire, personal accident, natural disasters
- Metrobank
- Full motor policy with Acts of Nature cover; renewed annually
- EastWest
- Comprehensive policy with Acts of God (AOG), from an EWB-accredited insurer
- Maybank
- Accident, theft, fire, flood, lightning, Acts of God; full insurable value
- UnionBank
- Amount not less than outstanding loan balance; loss payable clause required
Can you use your own insurer instead of the bank's?
At BPI, yes, if your account is not under a Free Insurance arrangement. BPI's own help article lets you procure insurance from your preferred insurance company.
The original policy must name BPI as mortgagee, include Acts of Nature coverage, and come with proof of payment. Submit it after your existing policy expires, and BPI may charge cancellation fees on its own bank-placed policy.
If your BPI account came with Free Insurance, you are locked into renewing with BPI/MS Insurance for the rest of the loan term. Switching means paying the full first-year premium yourself.
UnionBank and Maybank both require the insurer to be "acceptable" to the bank, without naming a specific list.
If you do not provide a compliant policy, several banks reserve the right to buy one for you and add the cost to your loan. UnionBank's terms let it purchase the required policy on your behalf.
Maybank's terms give it the same option, without obligation.
4 of 4 still to check
Free insurance promos usually come with a lock-in
EastWest's free 1-year insurance promo runs for applications approved between August 10 and November 10, 2026. It locks that insurance in with EastWest Insurance Brokerage for the loan term.
Your own policy is not accepted under the promo, and the promo explicitly does not include CTPL. RCBC runs a related arrangement through Malayan Insurance, which has checked RCBC Auto Loan borrowers' yearly insurance compliance since January 1, 2023.
RCBC's Auto Loan Plus product bundles insurance in for free; its Regular Auto Loan and Auto Loan Flexilite both charge a separate insurance fee.
Read the promo terms before assuming "free insurance" means no cost or no restriction. It usually means one insurer, for one term, with CTPL billed separately.
A free insurance promo is not the same as free CTPL. EastWest's own August to November 2026 promo states plainly that CTPL is not included. The mortgage itself, not the insurance, is covered in the chattel mortgage guide.
What happens if you don't renew on time
Metrobank states a specific late fee: PHP 3,000 for renewal documents submitted beyond 30 days from the policy anniversary date. UnionBank's terms describe the underlying mechanism most banks use.
If you do not provide the renewal policy in time, the bank may purchase the insurance itself. It then adds the cost, with interest, to what you owe.
Maybank's contract gives it the same option, at its discretion.
This is usually called force-placed insurance, though no bank in this guide uses that exact term on its own pages. The practical effect is the same everywhere it is described.
You end up paying for a policy you did not choose, on top of a late fee at banks that state one. Run the added cost through the car loan calculator before you let a renewal lapse.