How Is Your Car’s Premium Computed in Comprehensive Car Insurance?

How Is Your Car’s Premium Computed in Comprehensive Car Insurance?

Welcome to the topic “How Is Your Car’s Premium Computed in Comprehensive Car Insurance?

Whether it is because of reading our previous posts, knowledge about car insurance, or through some other sources – you must have heard about your car’s premium.

As we have mentioned in our previous posts, you must pay your premium in full to avail the full benefits of your policy.

But you may ask yourself how exactly this premium is computed when you select your comprehensive car insurance. If so, then you have come to the right place.

Perla Insurance, known for being one of the best car insurance companies in the Philippines, is here to answer all your car insurance-related questions. Through these educational and informational blog posts, as well as through our videos on YouTube through our Perla Cares series.

Below we will discuss – in detail – how exactly your car’s premium is computed in comprehensive car insurance. We will also answer some basic questions in relation to your car’s premium.

So don’t waste any time and read on below to find out more!

How Is Your Car’s Premium Computed?

The cost of the premium is dependent on what type of coverage you want, and the amount you want for each coverage. In general, the higher the coverage amount, the higher the premium.

The premium for the loss and damage and acts of nature costs more and will comprise the bulk of the premium for your comprehensive car insurance.

While the premium for third-party property damage, excess bodily injury, and compulsory third-party liability insurance cost less.

All the premiums for each coverage are then added up. Taxes such as VAT (Value Added Tax) and DST (Documentary Stamp Tax) are added to arrive at the total cost of the policy.

The Value of Insurance

When you buy insurance, it is only when you meet with an accident and have to claim that you see the value of what you bought. In insurance, quality service is what truly matters.

Just like a product, you do not want to buy a cheap one that breaks when you are just about to use it. You want to buy one that gives value for your hard-earned money.

This is why you should choose only the best of the best. So you get the most value from your investment and the most benefits out of your insurance policy.

Perla Insurance is proud to be part of the best car insurance that money can buy in the Philippines. Not only do we offer the best car insurance, but we offer the most value when you select TPL Insurance, CTPL insurance, and more.

Our car insurance coverage will keep you stress-free when it comes to the safety of your car, yourself, and your loved ones.

For a video version of the same topic, watch this link:

Why Do You Need To Pay The Full Premium?

You may ask yourself why you need to bother paying the full premium. The answer is simple – if you want to get the full benefit of your chosen policy, then you must pay the full premium.

If you fail to pay the full premium, then you could risk losing the expected benefits from your chosen policy. This could mean that you are either not entitled to the full benefits. Or you may even lose entitlement to all the benefits as per the requirement of your policy.

It would be an unfortunate situation to be in if you are met with the unfortunate situation of a car accident and are unable to be given the protection that you require.

Your car insurance premium is the amount you pay in full to your insurance provider in exchange for insurance coverage. Your insurer will pay for coverage stated in the insurance policy, including liability and collision coverage, once you’ve paid your due payment.

Car insurance is a safety net to fall back on in such troubling situations, and the only way to secure it is to make sure that you pay the premium in total and make sure to keep everything renewed.

How Is Your Car’s Premium Computed in Comprehensive Car Insurance?
How Is Your Car’s Premium Computed in Comprehensive Car Insurance?

What Is No-Fault Indemnity?

If an insured vehicle is involved in an accident that harms or injures another person outside the vehicle, the no-fault indemnity clause in the car’s insurance policy may provide a maximum of P15,000 to each third-party victim. It is not necessary to prove blame or carelessness on the part of anyone in order to claim on this provision of the policy.

Only one motor vehicle can be used to file a claim under the no-fault indemnity provision. When two or more vehicles are involved in an accident, the third party victim may only get payment from the insurance company of the other involved vehicle under the no-fault indemnity provision.


Overall, we have covered many different topics in this post.

We discussed the process by which your premium is computed in your comprehensive car insurance package. We also discussed the value of insurance in case of an accident and why the premium must be paid in full.

Additionally, we also touched on the basics of no-fault indemnity.

Perla always keeps the safety of our members in mind and prioritizes that above all else.


Check out our YouTube channel at ‘Perla Insurance’ to stay informed on important topics related to car safety and car insurance in the Philippines.

We answer commonly asked questions in our new series, called “Perla Cares”. Through this series we take the approach of using simple language and easy-to-understand animated videos. This to keep our viewers educated and make such vital information more accessible to the general public. Especially coming from a well-trusted source such as one of the best insurance companies in the Philippines.

We also urge our viewers to leave us comments on topics that they would like to be discussed in future videos. This is so that we give our audience the information that they demand to be explained.


Also, remember to like our page on Facebook, “PerlaInsuranceOfficial”. We are increasing our efforts in building a stronger bond with our community through more engagement.

We are also available to answer any insurance-related questions that our community may wish to be addressed and elaborated on.

Facebook is also one of the methods you can choose to contact us on if you are planning on choosing us for your car insurance. Our representatives will be there to provide you with more information and help guide you through the process and procedure.

Remember, we at Perla Insurance genuinely care for the well-being of our customers.

Not only do we strive for excellence of service, but we also strive to provide the most benefits. This is so you are getting more bang for your bucks and the most value out of your investment.

Have any questions regarding the topic How Is Your Car’s Premium Computed in Comprehensive Car Insurance? Feel Free to comment below.

Also Read: What Do You Pay in Case You Claim for any Loss and Damage?

1 thought on “How Is Your Car’s Premium Computed in Comprehensive Car Insurance?”

  1. I totally agree with what you said that consumers want a quality service when it comes to vehicle insurance. I bought my first car recently, and I never had one until then. So, I have yet to know the ins and outs when it comes to owning a car, but I’m quite sure that I need to avail for a good auto insurance as soon as possible. This way, I’ll be able to protect my investment.

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