Switching to Electric? Here’s What It Means for Your Car Insurance

Shifting Gears—EV vs ICE Cars in the PH

The Philippine car market is shifting fast in 2025. With fuel prices rising and more Filipinos going green, electric vehicles (EVs) are no longer a futuristic dream—they're showing up on our roads in record numbers as alternatives to traditional Internal Combustion Engines (ICE). In fact:
 

• EV sales in the Philippines jumped 80% in 2024, according to the Department of Energy.
  
  

• Registered EVs surpassed 20,000 units, fueled by tax perks, lower import duties, and the drive toward sustainable transport.
   

But while many buyers compare EVs vs Internal Combustion Engine (ICE) cars based on price, fuel efficiency, or eco-friendliness, there's one critical factor they tend to skip: car insurance.

Is car insurance more expensive for EVs in the Philippines? Do battery risks, parts shortages, or repair costs make them riskier to cover? What should you know before making the switch?

In this blog, we break down the insurance differences between EVs and ICE cars—from premiums and coverage to accident risks and real-life costs—so you can make a smarter, well-informed decision when buying your next ride.

Up next: A side-by-side comparison of EV vs ICE insurance in the Philippine setting—let’s see which one really gives you more bang for your buck.

EV vs ICE Car Insurance: What Pinoy Drivers Need to Know

1. Premiums: Are EVs More Expensive to Insure?

Short answer: Yes—for now.
 

Car insurance for electric vehicles in the Philippines tends to cost more than for gas-powered cars. Why? EVs are still a relatively new player in the local auto scene. With fewer parts available, higher tech involved, and limited service centers, insurers often see EVs as higher risk—which pushes premiums up.
 

Here’s a quick look at the average annual car insurance costs in the Philippines:

So, why are EV insurance premiums higher?
 

• Battery systems are expensive—replacements can cost hundreds of thousands.
  
  

• Not many mechanics are trained for EVs, which limits service options.
  
  

• Diagnostic tools for EVs are specialized, and not yet widely accessible in the Philippines.
   

But the good news? As more EVs hit the road, and the local infrastructure catches up (more charging stations, trained technicians, etc.), insurance rates for electric cars in the Philippines are expected to go down. It’s only a matter of time.

2. Repair Costs and Parts Availability

When it comes to post-accident repairs, internal combustion engine (ICE) cars still have the edge—at least for now.
 

ICE Cars

• Can be serviced by most local repair shops
   

• Spare parts are widely available and more affordable
   

• Repairs are generally faster and less complicated
   

EVs (Electric Vehicles)

• Need brand-certified service centers, especially for battery handling
   

• Parts like battery packs, power inverters, and control modules are often imported
   

• Repairs can take longer and cost more—especially in the case of battery damage
   

Here’s how they compare:

Insurance impact: More expensive and complex repairs typically lead to higher claim values, which can raise your future car insurance premiums. Some insurers may also limit coverage for certain EV parts—or require you to get add-on riders for full protection.
 

As EV adoption grows, these gaps will likely shrink. But for now, it’s a key consideration when choosing between electric and gas cars in the Philippines.

3. Risk Profiles: Do EVs and ICE Face Different Dangers?

Yes—and it’s a big deal for car insurance in the Philippines.
 

Insurers assess electric and Internal Combustion Engine (ICE) vehicles differently based on their risk exposure. From fire hazards to flood risks and theft potential, here’s how the two types stack up:
 

Fire Risk: Battery vs. Fuel

• EVs are statistically less likely to catch fire, but when they do, battery fires are harder to control and burn much hotter and longer.
  
  

• ICE cars are more familiar territory for insurers, with well-established data on fuel-related explosions and incidents.
   

Flooding in the Philippines

• Light flooding? EVs can usually handle it.
  
  

• Deep water? Battery packs can get damaged beyond repair, often leading to total write-offs.
  
  

• ICE cars tend to be easier and more cost-effective to repair after flood exposure.
   

Theft Risk

• EVs often come with factory-installed GPS tracking, immobilizers, and advanced anti-theft systems.
  
  

• ICE cars are generally more at risk of theft, especially older models without modern security tech.
   

Here’s a quick risk comparison:

Insurer Insight: Some car insurance providers in the Philippines may offer lower premiums for EVs equipped with anti-theft features, while applying higher rates or coverage limits due to battery-related risks and repair costs.

4. Coverage Inclusions: What to Look For

No matter what you drive—an electric vehicle or a gas-powered car—car insurance coverage in the Philippines isn’t one-size-fits-all. Knowing what’s included (and what’s not) can save you from big out-of-pocket costs later.
 

Here’s a side-by-side breakdown of key coverage areas every Filipino driver should check:

Oona Tip:

Check the fine print for "battery system exclusions." Some standard Philippine car insurance policies won’t automatically cover EV components like the battery, power inverter, or onboard charger—unless you add a rider or choose a policy made specifically for electric vehicles.

5. Who’s Offering EV Insurance in the Philippines?

The good news? More and more insurance companies in the Philippines are stepping up to offer car insurance for electric vehicles (EVs). But not all policies are created equal—especially when it comes to coverage for things like battery systems, charging equipment, and roadside support.
 

Here’s a quick look at some top providers offering EV-friendly plans:

Oona offers customized car insurance plans for EV owners in the Philippines, so you can easily compare options and get a quote online—without the guesswork. Whether you drive electric or gas, we make sure your ride (and your wallet) are covered.

6. Sample Cost Comparison: EV vs Gas Car Insurance (Sedan)

Note: Premiums are influenced by factors like vehicle age, location, insurance add-ons, and your driving history.

Still, it’s clear—EV insurance in the Philippines tends to be pricier, especially for higher-end models, due to specialized parts and limited servicing options.

7. Government Incentives vs Insurance Reality

Thinking of switching to an electric vehicle for the perks? You’re not wrong—government incentives for EVs in the Philippines are helping drive adoption. These include:

• Import tax exemptions
  
  

• No coding days in Metro Manila (MMDA)
  
  

• Lower LTO registration fees
   

But here’s the catch:
Car insurance premiums for EVs aren’t part of the deal. Insurers operate separately from government policy, so electric cars are still assessed based on market risks and repair costs—not incentives.
 

What this means for you:
While you’ll save on fuel, taxes, and traffic restrictions, EV insurance in the Philippines may still cost more than traditional gas-powered vehicles, at least for now.
 

As EV tech becomes more common and affordable locally, insurance prices are expected to level out. Stay tuned!

8. Should You Switch to an EV Now? A Quick Insurance Checklist

Before you take the EV leap, here’s a reality check—not just for your lifestyle, but for your car insurance readiness too!
 

Use this table to assess whether going electric makes sense for you today

Pro tip: Even if you’re EV-curious, make sure your insurance provider supports EV coverage—including battery and towing support—before making the switch.

9. Tips to Lower Your Insurance Premium (EV or ICE)

Looking to cut down on your car insurance costs—whether you’re team EV or team gas? Good news: there are tried-and-tested ways to lower your annual premium without sacrificing protection.

Here’s how to make your policy work harder for your wallet:

• Bundle with home insurance to get discounts
  If you already have home insurance or other coverage with the same provider, ask about a multi-policy discount. Bundling your car and home insurance can unlock instant savings.
  
  

• Install anti-theft devices and share details with insurer
  Equipping your car with a GPS tracker, dash cam, or immobilizer can reduce your risk profile in the eyes of insurers. Just make sure to let your provider know—you won’t get a discount if they don’t have it on record!
  
  

• Choose higher deductibles if you’re a confident driver
  Raising your participation fee or deductible—the amount you shoulder in a claim—can lower your premium. This is great if you rarely get into accidents and want to save on annual costs.
  
  

• Maintain a clean driving record
  Avoiding accidents and traffic violations pays off—literally. Some insurers offer no-claims discounts or loyalty rewards to safe drivers, especially after a few years of clean driving.
  
  

• Ask for paperless or annual-payment discounts
  Opting for paperless billing or settling your insurance in one full payment (instead of monthly) can score you small but helpful discounts. Plus, it's more convenient!
   

Extra Tip for EV Owners: Consider joining a local EV club or electric vehicle association. Some have partnerships with insurance companies and offer group discount rates for members. It’s a great way to save and stay in the loop on EV-related perks!
 

Coming up: Let’s wrap things up with key takeaways—and tackle some of the most frequently asked questions about EV and gas car insurance in the Philippines.

Conclusion: Drive Smart, Insure Smarter

Whether you're leaning toward a sleek electric vehicle (EV) or staying loyal to your trusty gas-powered ride, one thing's for sure—car insurance in the Philippines is no longer one-size-fits-all.
 

As more Filipinos consider making the shift to EVs, insurance providers are also adjusting how they assess risks, calculate premiums, and build policies. Right now, EV insurance tends to be pricier, thanks to newer tech, limited service centers, and costly battery-related repairs. But as the industry matures and EV infrastructure improves, we can expect coverage to become more affordable and more accessible.
 

Bottom line? Choose the car that fits your lifestyle—but don’t forget to factor in the real cost of car insurance, not just the sticker price. Do your research, ask questions, and compare quotes across providers.
 

Because whether you're charging or fueling up, the smartest drivers always stay protected.