How to Rent a Car in the Philippines

How to Rent a Car in the Philippines

Your Guide to Car Rentals in the Philippines

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WRITTEN BYBryan Jacinto
PUBLISHED ONDecember 6, 2023

Planning a trip to the Philippines? Great! Need info on renting a car there? We can help!

Our guide can make your journey unforgettable. The Philippines has vibrant cities, stunning beaches, and mountains and renting a car gives you the freedom to explore all the places in your itinerary at your own speed. It also adds an element of adventure.

Read on to learn more about car rentals in the Philippines.

Age Requirements

The minimum age to rent a car in the Philippines is 21 years. However, it’s worth noting that regulations for car rentals may vary slightly from one company to another.

Considerations for Younger Drivers

  • Underage Fee: If you are aged between 21 and 24, some rental companies may charge an “underage” fee, which is an additional daily fee to the regular car rental fee.
  • Limited Vehicle Types: Moreover, younger drivers might be restricted from renting certain types of vehicles, such as luxury cars or SUVs.

How the Rental Process Works

Here’s a convenient step-by-step guide designed to walk you through the procedure from booking to returning the vehicle:

Find a reputable rental agency

First and foremost, identify a trusted company from which to rent your vehicle. This step will include diligent research on safety records, types of vehicles available, and customer reviews. Online aggregate platforms can be particularly helpful for comparing prices.

Book your vehicle

Once you’ve chosen a rental agency, you can move on to selecting a vehicle that suits your needs and making your reservation. Again, online platforms can often make this straightforward, allowing you to review vehicle descriptions, make a booking, and even pay upfront.

Pick up the vehicle

When you’ve made your booking, your next step will be to pick up the vehicle. This usually involves paperwork at the rental company’s desk, including inspecting your driving license, signing the rental agreement, and placing a security deposit.

Use your vehicle

After the paperwork is complete and you’ve received the keys, you are free to start your journey. Drive safely and enjoy your stay. Remember to abide by all Filipino traffic laws and rental agency rules.

Return the vehicle

At the end of your rental period, return the vehicle to the nominated drop-off location. Confirm the location and time with the rental agency. Ensure the car is in the same condition as when you rented it. After a final inspection is done, a representative from the rental agency will sign off on the condition of the vehicle.

Financials: How Much Does It Cost?

On average, car rental prices in the Philippines range from $25 – $60(USD) per day. This baseline rate typically includes basic insurance for a standard car model and may or may not cover unlimited mileage.

However, pricing is not as straightforward as it may seem. There are several variables at play that can influence your final bill.

  • Car Type: Luxury, business, or economy – the class of vehicle you select impacts the cost. As expected, premium vehicles attract a higher rental fee.
  • Length of Rental: How long you rent the car can alter the price. Often, the longer you rent, the lower the daily rates become.
  • Time of Year: High tourism season could inflate prices due to increased demand. Conversely, slow tourism periods might see more competitive rates.
  • Insurance: Though basic insurance is often included, obtaining additional coverage will naturally increase the cost.
  • Extra Features: Wi-Fi connectivity, GPS systems, child seats, or any other additional feature requiring an extra fee.

To help you gain a clearer understanding, here is a basic representation of how these factors may alter the daily rates of car rentals.

FactorsPrice Adjustment
Car type+ $10 – $30 per day
Length of rental– $5 – $10 per day
Time of year+ $5 – $15 per day
Insurance+ $10 – $15 per day
Extra features+ $5 – $10 per feature per day

Insurance Considerations

Understanding car rental insurance in the Philippines may seem complex. But gaining clarity can save you troubles and potential financial loss. Let’s explore some important aspects.

Should You Pay for Extra Insurance?

The types of insurance typically offered when renting a car include:

  • Collision Damage Waiver (CDW): This covers the repair cost if the car is damaged in an accident. However, it doesn’t include damages to other cars or property.
  • Supplemental Liability Insurance (SLI): This provides additional coverage if you’re held liable for damage to another person’s property or medical costs due to injuries to others in an accident.
  • Personal Accident Insurance (PAI): This covers medical costs for the rental car’s driver and passengers in the event of an accident.
  • Theft Protection (TP): This covers the cost of the car if it is stolen during the rental period.

Weighing the pros and cons of each type of insurance could aid in making your decision. Let’s consider these factors:

ProsCons
Collision Damage Waiver (CDW)Covers the repair cost of the rental carDoesn’t cover damages to other vehicles or property
Supplemental Liability Insurance (SLI)Offers broad coverage, including liability for damages to othersPremium could add up, especially on long rentals
Personal Accident Insurance (PAI)Covers medical costs for driver and passengersPotentially redundant if you already have personal health insurance
Theft Protection (TP)Covers the cost if the rental car is stolenThis could be unnecessary in low-crime-rate areas

Supplemental Liability Insurance

When renting a car in the Philippines, one weighty decision that you’ll need to make revolves around insurance, specifically the purchase of Supplemental Liability Insurance or SLI. But what exactly is SLI, and do you really need it?

Supplemental Liability Insurance is an optional coverage that protects you from legal claims by third parties for bodily injury or property damage if you are deemed at fault in a car accident. Some renters mistakenly think that this type of insurance is included automatically in their car rental agreement, but that is not the case.

  • Bodily Injury: If another person is hurt or even killed in an accident where you’re at fault, SLI covers their medical expenses.
  • Property Damage: In the event you damage someone else’s property, like a car, home, or storefront, during an accident, SLI can take care of those costs.
  • Legal Fees: SLI can also cover legal fees associated with any claims or lawsuits resulting from a reported incident.

So, is SLI necessary? The answer to this depends largely on your circumstances. Your current insurance policy, credit card benefits, or even travel insurance might already provide you with adequate coverage. You can make a more informed decision by asking yourself the following questions:

  • Does your existing insurance policy cover rental cars?
  • Does your credit card company offer rental car insurance as a benefit?
  • Are you adequately protected by your travel insurance policy?

Remember, duplicating coverage isn’t a financially wise decision. If you’re already covered, SLI may not be necessary. However, if gaps exist in your coverage or you do not have an insurance policy, then SLI can be a means of protection and peace of mind.

Best Credit Card to Use

If you’re considering renting a car in the Philippines, the credit card you use can make a significant difference. Using the right credit card can offer you numerous advantages, including considerable insurance benefits. But, you ask, which credit card should you use?

Visa Signature or Visa Infinite

These credit cards from Visa include an auto rental collision damage waiver. This perk covers the costs of repair or replacement if you get into an accident while driving your rented vehicle. Visa also includes theft coverage as part of this waiver, providing you with peace of mind during your rental time.

American Express

When you use an American Express card, you gain access to their Car Rental Loss and Damage Insurance. This benefit provides secondary coverage for damage or theft of your rented car. Remember, though, to enroll in this service prior to picking up your rental.

MasterCard World Elite

MasterCard World Elite offers their cardholders top-notch insurance protection for rental cars, covering up to $100,000. They even include in their coverage “reasonable” charges such as towing, loss-of-use fees, and even admin fees.

Compare the features and coverage of these cards to choose the best one for your rental needs.

Before you can smoothly navigate the roads of The Philippines in your rented car, there are a number of legal requirements you must meet. Understanding these prerequisites is imperative to ensure a seamless car rental process. So, what’s required?

  • Valid Driver’s License: It goes without saying, but to rent a car in The Philippines, you need a valid driver’s license. If you’re an international visitor, you’ll need an International Driving Permit (IDP) along with your home country’s driver’s license.
  • Age Requirements: The renter must be at least 21 years old. However, individuals under 25 may incur additional surcharges.
  • Identity Documentation: A valid passport or any form of government-issued identification is usually required for verification purposes.
  • Credit Card: Most Filipino car rental companies require a valid credit card for deposit purposes.

Requirements might vary slightly from one rental company to another. Therefore, it’s always best to check directly with the rental company for their specific prerequisites.

Importance of an International Driving Permit (IDP) in (insert country)

If you’re planning to drive in the Philippines, having an International Driving Permit (IDP) is crucial. This permit, which has over 12 translations and is recognized in over 150 countries, including the Philippines, might even be considered your ‘passport’ to hit the road legally. So, what makes an IDP so vital?

  • Instant Approval: The approval process is swift and straightforward, providing a hassle-free experience.
  • Fast & Easy Process: The application can be completed within minutes, aligning well with your busy schedule.
  • Valid from 1 to 3 years: Depending on your preference, your IDP can be valid for up to 3 years, eliminating the need for yearly renewals.
  • Drive Legally Overseas: An IDP signifies that you possess a valid license in your home country. In the Philippines, it stands as a universal driving license.
  • Translation in 12 Languages: Overcoming a language barrier won’t be a concern as the IDP provides translations in 12 languages, including Filipino and English.
  • Recognized in over 150 countries: This means you can drive not only in the Philippines but worldwide with your IDP, expanding your travel horizon.
  • Worldwide Express Shipping: Regardless of where in the world you are, your newly issued IDP can be shipped directly to you within days.

An International Driving Permit in the Philippines puts you in the driver’s seat with peace of mind. While navigating the beautiful islands of the Philippines, let the IDP take care of the legalities, freeing you to focus solely on the adventure ahead.

Picking a Vehicle

Choosing the right car for rent in the Philippines depends on the driver’s choice, the terrain, and travel requirements. Let’s explore this further.

For Family Vacations

Comfort is key during family trips. Therefore, a spacious vehicle is essential for such scenarios. Consider renting:

  • Minivans: Providing ample space for both passengers and luggage, minivans are an excellent choice for family vacations.
  • SUVs: In case your adventure leads you off the beaten path, an SUV with good ground clearance and cargo space might be the perfect fit.

For Business Trips

When on a business trip, making a good impression is paramount. Here are some options:

  • Sedans: Compact yet chic, these work well for navigating urban environments. Pick a luxury sedan if you desire a touch of class.
  • Crossovers: These bridge the gap between the professionalism of a sedan and the practicality of an SUV. They offer a trendy choice for modern businesspersons.

For Solo Travellers

Solo travelers might prefer smaller, more fuel-efficient cars:

  • Compact cars: Easy to park, handle, and fuel-efficient, these are a smart choice for single travelers.
  • Hatchbacks: If you want to combine convenience with a little more cargo space, consider a hatchback.

Areas Worth Exploring with a Rental Car

Explore the beauty of the Philippines with a rental car. It provides the freedom to visit various attractive places at your own speed. Here are some areas best toured with a rental car:

Manila

The bustling capital city with its distinctive blend of Spanish colonial architecture and modern skyscrapers. Having a rental car will help you navigate through the bustling streets and show you the city’s top sights, like Rizal Park, Intramuros, and the iconic Manila Bay.

Cebu City

Also known as the “Queen City of the South,” Cebu City is rich in history and boasts stunning natural attractions. A rental car will allow you to explore landmarks like the Magellan’s Cross, Basilica Minore del Santo Niño, and the gorgeous Taoist Temple.

Baguio

Located in the mountainous area of the Philippines, Baguio, also known as the “Summer Capital,” houses beautiful landscapes, fascinating arts, and culture. Utilizing a rental car will help you access iconic spots such as Burnham Park, Mines View Park, and BenCab Museum.

Choosing Rental Companies and Insurance Providers

Car Rental Companies

Many international car rental companies have made their presence felt here, alongside a host of local outfits that offer competitive prices and top-notch service.

Let’s take a look at some leading car rental companies in the Philippines for you to consider:

  • Avis Car Rental: A leading global brand, Avis in the Philippines offers a comprehensive range of vehicles, from compact cars to SUVs, that accommodate all kinds of traveler’s needs.
  • Hertz: Being one of the world’s most renowned car rental companies, Hertz has asserted its strong position here, providing customers with high-quality cars and services.
  • EuroRent A Car: As a reputable local company, EuroRent-a-Car consistently delivers exceptional customer services with an extensive range of well-maintained vehicles.
  • Manila Rent a Car™: This local company is particularly famous for its flexible rental plans, excellent customer service, and strategic locations.

There are also numerous online platforms, like Expedia or Booking.com, where you can compare prices, luggage space, passenger capacity, and other features to make your best choice.

Choosing the best car rental company is an essential part of securing an enjoyable and hassle-free travel experience. Feel free to check out our detailed rundown of the best car rentals in the Philippines.

Car Rental Insurance Providers

In the Philippines, securing car rental insurance is as crucial as renting the vehicle itself. But do not fret; the country boasts a plethora of reliable car rental insurance providers, ready to safeguard your mobility needs during your stay. Here are some of them:

  • MAPFRE Insular
  • Standard Insurance Co. Inc.
  • FPG Insurance, Inc.
  • Malayan Insurance Co., Inc.
  • Charter Ping An Insurance Corporation

Each provider offers distinct packages revolving around the typical risks associated with car rentals, such as collision damage, theft, and third-party liability. We recommend that you take time to weigh your options and consider your specific requirements before deciding.

To help you navigate this crucial process, our team dedicated a comprehensive article exploring the best car insurance providers in the Philippines. Thinking about going local or international coverage? We\’ve got you covered. In that article, we dissect their key differentiators, including the features and benefits of each service. Find out how these providers can ensure a smooth, safe, and worry-free driving experience during your stay.

Pick-up and Drop-off Locations

When renting a car in the Philippines, it’s crucial to consider not just the model of the car but also where you’ll be picking it up and dropping it off. Here are some things to keep in mind:

  • Pick-up Location: Think about where you’re going to be when you need the car. If you’re arriving by plane, it might meake sense to pick up the car directly from the airport. However, if you’re already in the city, consider a location closer to your hotel or place of stay to save time and stress.
  • Drop-off Location: Similar to the pick-up location, your drop-off location should ideally be wherever you’re planning to be at the end of your car rental period. Most car rental companies in the Philippines offer the option to drop the car off in a different location than where you picked it up, which can be very useful if you’re planning a road trip or traveling from one city to another.

Safety, convenience, and cost should be your main considerations when picking your car rental locations. Here are some quick tips:

  • Safety: This should always be your utmost priority. Choose pickup and dropoff locations that are reputable, well-lit, and secure. Security should be in place to protect you, the car, and your belongings.
  • Convenience: Time is of the essence when traveling. Choose locations that are easy to find, have quick access to main roads, and are near places you’ll visit.
  • Cost: While convenience is key, it shouldn’t come with sky-high fees. Compare the costs of different location options and weigh this against your budget and convenience.

Additional Charges and Extra Costs

When renting a car in the Philippines, being aware of potential additional charges and extra costs is crucial. Let’s delve into some of the unforeseen fees you might encounter:

  • Late Return Fees: If you don’t return the rental car on the agreed date and time, you might have to cough up some late return fees. Rental companies often charge an extra fee for each day the car remains unreturned beyond the agreed time.
  • Extra Mileage Fees: Did you know that some rental car agreements include a mileage cap? It’s true! If you exceed the agreed-upon mileage limit, you’ll likely incur extra mileage fees.
  • Gas and Refueling Charges: Most car rentals in the Philippines require you to return the car with the same amount of fuel as when you received it. Failing to do so could result in gas and refueling charges.
  • Damage or Cleaning Fees: Ensure the car is returned in the same condition as you received it. Any notable damages or need for excessive cleaning may lead to damage or cleaning fees.
  • Additional Driver Fees: If you plan to have multiple drivers during your rental period, be prepared to potentially pay additional driver fees.

If you’re new to driving in the Philippines, we highly recommend checking out our comprehensive driving guide for the Philippines. This guide equips you with the knowledge needed to navigate the roads and understand local road rules and etiquette, ensuring a smooth and safe driving experience.

Money-Saving Tips

If you’re planning on renting a car in the Philippines, it’s essential to keep budget considerations in mind. Here are some practical tips and tricks that can help you save some hard-earned cash during the process.

  • Do Your Homework: Research various car rental companies in the Philippines for the best deals.
  • Book in Advance: Rental rates can increase as the pick-up date approaches. Therefore, it’s generally cheaper to book ahead of time.
  • Long-Term Rental: If you’re going to need a car for a week or more, long-term rentals can be more cost-effective.
  • Avoid Airport Car Rentals: Renting a car directly from the airport can incur additional costs. Try to rent from a downtown location instead.
  • Gas and Insurance: Check for gas and insurance policies, as many rental companies include these in the rate.
  • Size Counts: Choose a car that suits your needs. A compact car is generally cheaper than a larger model but may not be suitable for larger groups or extensive traveling.

Remember, renting a car is about ensuring convenience and flexibility in your travels. With smart decision-making and these money-saving tips, you can maximize your experience while minimizing costs.

Understanding the Rental Agreement

Understanding the rental agreement is a crucial aspect when it comes to renting a car in the Philippines. It’s a legal document that sets out the terms and conditions of your rental. Such an understanding will save you from unexpected surprises and disappointments. Here are key points that you need to focus on before signing any rental agreement:

  • Rate Details: Always look at the rate details. Make sure that the rate includes all the fees. Also, check if there’s a mileage limit and what happens if you exceed it.
  • Insurance Coverage: Find out what kind of insurance coverage is included in the rental. Check if you need to consider getting additional coverage to protect yourself.
  • Terms of Servicing: The car needs to be in good condition. Does the agreement say anything about who is responsible for maintaining the vehicle?
  • Penalties for Late Return: Make sure to understand what fees you’ll incur if you return the vehicle late.
  • Cancellation Policy: What happens if your travel plans change? Does the agency provide any flexibility? Make sure to confirm the rental agency’s cancellation policy.

Note that the actual terms and policies may vary depending on the rental company that you choose. Therefore, always take the time to read and understand the terms before making your decision.

Types of Rental Contracts

When it comes to renting a car in the Philippines, understanding the different types of rental contracts is essential. These contracts outline the terms and conditions of your car rental and provide legal protection for both you and the rental company.

Long-Term Car Rental Contracts

A long-term car rental contract allows you to rent a car for an extended period, typically ranging from a month to a year or longer. This type of rental can offer considerable savings over daily rates, making it a preferred choice for business assignments or extended vacations.

Short-Term Car Rental Contracts

A short-term car rental contract is a flexible option for those needing a vehicle for a short duration, usually less than a month. Daily and weekly rental contracts fall into this category. It is the perfect choice for weekend getaways, quick business trips, or while your own car is under repair.

Lease Agreements

The lease agreement involves renting a car for a predetermined period, often several years, and returning it at the end of that period. It’s more like a long-term rental but with the added benefit of driving a new vehicle that’s under warranty, reducing maintenance concerns.

Car Sharing Contracts

Car sharing involves renting a car on an as-needed basis, even for just a few hours. It’s a convenient option if you only need a vehicle occasionally and prefer not to deal with the costs and responsibilities of owning a car.

Closing Thoughts

We hope you find these tips and insights useful as you plan your trip. Make sure to remember the key points, from understanding the age and legal requirements, choosing the right vehicle for your needs, understanding the rental process, to ensuring you’re financially prepared.

We invite you to click through the links within the article for more specific details on each topic. They provide in-depth information that has been carefully laid out to assist in your decision-making process.

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