All Articles With Author : Moneymax

The latest and the best financial news, tips and tricks.

Buying a Truck? Check Out the Best Pickup Cars in the Philippines

Bold, powerful, tough – these are the best words that describe pickup cars. While they look like they’re packed with so much angas, these cars are actually designed to be utilitarian and flexible. With its roomy interiors, a pickup truck can double as a family car. And if you’re a weekend warrior who loves going to the countryside, you can always count on this vehicle as it’s designed with off-road capabilities. You can easily carry your surfboards, bikes, or whatever sporting equipment you’ll need in your adventure. Moreover, you can turn your pickup into a member of your business’ logistics fleet as its cargo bed can carry and accommodate the goods that you’re selling. Whatever your purpose is, you won’t go wrong with a versatile pickup truck. If you’re looking for a truck that effortlessly melds into your lifestyle, check out the eight best pickup cars in the Philippines this 2021. Best Pickup Cars in the Philippines Rugged, sexy, and powerful pickup cars can effortlessly combine aesthetic and performance. Check out this list of the best pickup cars in Philippines if you’re looking to buy your first car or planning for an upgrade. Mitsubishi Strada Price: PHP 815,000 to PHP 1,764,000 Key Specs of Mitsubishi Strada: Seating capacity: Five Transmission type: Manual or automatic Engine: 4-cylinder, 16-valve, 2,396 cc (2.4L) Performance: 165 horsepower and 430 Nm of torque Fuel type: Diesel The strong and striking façade of this pickup car easily embodies muscularity and toughness. The Strada’s appeal surely looks expensive, but its base model is surprisingly the most affordable…

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How to Use PESONet Transfer Service: Guide for Consumers and Businesses

Apart from paying bills and purchasing items online, you can now use your smartphone to transfer money in bulk. That’s right. Imagine, you can even send your employees’ salaries online. How? By using the Philippine EFT System and Operations Network or PESONet. Launched in 2017, PESONet Philippines allows users to transfer money to another bank or non-bank institution that also uses the facility. Keep on reading to more about how to use the PESONet transfer service. What is PESONet? PESONet[1] is a batch electronic fund transfer (EFT) credit payment scheme, which serves as an alternative to a paper-based check system. PESONet fund transfers are processed in bulk and cleared in batch intervals. There is no transfer limit with this fund transfer service. However, transferring money isn’t real-time. The receiver will get the transferred fund within the same business day, as long as the sender transfers the amount within the cut-off of their respective PESONet participating institution. This inter-bank fund transfer platform aims to make business-to-business (B2B) and person-to-business (P2B) payments more convenient. For example, corporations can use it to credit salaries to their employees’ accounts without the need to create special payroll accounts. PESONet vs InstaPay: What are the Differences? While PESONet and InstaPay are both electronic fund transfer systems, their functions are different. InstaPay is for real-time transfer of low-value amount. On the other hand, PESONet can handle non-time sensitive transfers in bulk. Below is a comprehensive comparison between these two electronic fund transfer services in the Philippines: How Does PESONet Work? Customers using PESONet can use their bank…

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Robinsons Credit Card Application in 5 Quick Steps

Robinsons Bank may not be as widely known or as spread out as the larger commercial banks in the country. But it’s definitely a strong bank that offers a suite of reliable financial services and products, such as credit cards. There are only three Robinsons Bank credit cards. But what it lacks in quantity, it makes up for quality. This is attested by the bank’s various recognitions, such as the Most Innovative Banking Credit Card Program (World Economic Magazine Awards 2021) and Best Banking Credit Card Program (International Business Magazine Awards 2021).[1] So, if you’re looking for a good credit card, include this bank in your list. This article lists down all you need to know when it comes to Robinsons credit card application. Robinsons Credit Card Application Steps The Robinsons credit card application is not that complicated. All you need to do is to follow the five steps below: 1. Check the Eligibility Requirements First and foremost, determine if you’re actually eligible to apply for a Robinsons credit card. Here are the criteria that you need to tick off: Must be a Filipino citizen  21 to 65 years old (16 years old for supplementary card applicants) Employed or has a profitable business for the past two (2) years Earning a minimum gross annual income of PHP 180,000 (for single applicants) or PHP 240,000 (for married applicants) Has a working landline number,  postpaid mobile phone, and valid email address Working or living within a Robinsons Bank’s serviceable area 2. Pick the Right Robinsons Credit Card for You Robinsons credit cards…

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Where Can I Invest My P1,000? 8 Investments to Consider (Plus Pros and Cons)

“Where can I invest my 1,000 pesos?” If you don’t have a lot of cash right now but want to start investing, can you still invest a small amount like PHP 1,000 and make it grow? The answer is a big YES. There are investments for beginners and many other possible investments for different risk appetites. It’s really up to money-savvy Filipinos like you to find these investments and take advantage of them. Where Can I Invest My 1,000 Pesos? 8 Cheapest Investments in the Philippines If you have PHP 1,000 in your wallet or savings account right now, don’t spend it just yet. Check out these cheap investments in the Philippines first! Mutual Funds Minimum additional investment: PHP 1,000 A mutual fund pools your money with multiple investors into a bigger fund, which will then be invested in bonds, stocks, or money market funds. The funds are managed by a specialized mutual fund company where your shares are managed by a fund manager. The Securities and Exchange Commission (SEC) regulates mutual funds companies in the Philippines. Ideal for: Low to high-risk investors with long-term financial goals Mutual Fund Investing Advantages Mutual funds are among the best investments in the Philippines, especially if you’re a beginner and have no time and expertise to monitor your fund’s performance. The bigger your investment and the longer you invest, the higher profit you’ll get. A professional fund manager from the mutual fund company of your choice will grow your money and make investment decisions for you. Most mutual funds require a minimum initial…

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Scan to Pay: How to Use a QR Code for Digital Payments in the Philippines

Electronic or digital transactions have become a part of the new normal. The pandemic has led to the increase in digital transactions, with businesses offering goods and services online and consumers paying for them through bank transfers, mobile wallets, and scanning a QR code in the Philippines.  Thus, buying and selling transactions are slowly moving away from cash payments and gradually being replaced by QR code payment (also called scan to pay), which is considered faster, easier, and a lot more accurate. In fact, the value of QR code transactions in the Philippines has reached almost PHP 1 billion as of May 2021.[1]  Whether you’re already doing QR code transactions or not, it’s worth knowing more about QR code in the Philippines and how it works.  What is a QR Code in the Philippines? The meaning of QR is Quick Response. A Quick Response or QR code is a printed barcode composed of square-shaped grids[2] scanned through a smartphone or any computer system. Initially, QR codes were developed by a subsidiary of Toyota to track manufactured cars. Today, QR codes are also used to send and receive money in the Philippines.  What is QR Ph? QR Ph is the national standard that uses quick response technology and code scanning for payments.[3] Through QR Ph, Filipino business owners and customers can enjoy cheaper, faster, and safer payment transactions. This payment system using the QR code was launched by the Bangko Sentral ng Pilipinas (BSP) in November 2019, initially for person-to-person transactions (P2P) such as payments and remittances. The ultimate goal of…

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Goodbye, Yearly Charges: 17 Credit Cards with No Annual Fee in the Philippines

There are many advantages to owning a credit card: ease of purchase, having an emergency line of credit, and enjoying exclusive rewards and perks, among many others. Many people, however, are discouraged to get a credit card because of the fees that come with it. It’s true that credit card fees are disheartening. But convenience comes with a price. If you need a plastic card, you can avoid additional charges by getting one of these credit cards without an annual fee in the Philippines. What Does a No Annual Fee Credit Card Mean? A credit card annual fee is a convenience fee that providers charge to their clients. Basically, it’s the amount you pay for using your bank’s credit card services. So, when you see a bank offering no annual fee credit cards, that simply means that its yearly card membership fees are waived. Credit cards normally have two types of no annual fee arrangements: Limited Annual Fee Waiver If your card has this arrangement, it may mean that the annual fee is waived within a limited period, usually for a year. Nevertheless, you can still find banks with a three-year waiver. After that period, the regular annual fee will apply. It may also mean that you need to meet the required minimum spend for one year so you won’t have to pay the annual fee. No Annual Fee for Life This simply means that your annual fee is waived forever. You won’t have to worry about paying your membership fee every year. This is a common feature of most…

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Your Complete Guide to PNB Credit Card Application

When it comes to banking, no one can question the reputation of the Philippine National Bank or PNB. After all, it’s the country’s first universal bank.[1] Its trustworthiness and credibility are substantiated by its 105 years of existence. A bank wouldn’t last this long in the business if it didn’t have high-quality and reliable services. PNB is not just known for its commercial and personal banking capabilities. It also offers a robust range of credit cards that consumers and corporate clients can use for their spending activities. The cards also have a slew of distinct features. One is Transaction Conversion, which converts straight payments into low-interest installments. Another is the Zero % Affordable Payment Plan (ZAPP), which provides cardholders with 0% installment plans of up to 24 months if they shop at PNB-accredited merchants. If you’re shopping for a new card, it’s time to consider what PNB has to offer. Here’s your complete guide to PNB credit card application. PNB Credit Card Application Steps Ready to be a PNB credit cardholder? Here are the things you need to do to apply for a PNB credit card. 1. Check if You’re Qualified First, see if you’re actually eligible to apply for a PNB credit card. Here are the general requirements that every applicant must fulfill: Must be a Filipino citizen and Philippine resident21 to 65 years old Should be a regular employee for at least one (1) year If self-employed, must have a profitable business for at least two (2) years Must have a gross annual income of at least PHP…

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How to Get an SSS ID in the New Normal: Read This Before Applying for a UMID Card

Gone are the days when you needed to provide multiple IDs to complete government transactions. Enter the UMID Card, perhaps one of the greatest innovations that the government has ever implemented. It rolls all the details of your multiple government IDs―from SSS to PhilHealth―into one card, thus making it function like a master key. With the practicality that it offers, the UMID card has been well-received in the country. A lot of Filipinos flock to SSS and GSIS branches to apply for one. And even if the application services have been paused for a long time due to quarantine restrictions, many are still looking forward to initiating their application. Thankfully, the UMID application service resumed last September 27, 2021.[1] If you happen to be an SSS member who wants to apply for a UMID card, you’ve come to the right place. Here’s how to get an SSS ID. What is UMID? UMID means Unified Multi-purpose Identification and is often called the UMID card. The Unified Multi-Purpose ID (UMID) is a four-in-one identification card that Filipinos can use to transact with government agencies such as the Social Security System (SSS), Government Service Insurance System (GSIS), PhilHealth, and Pag-IBIG Fund. The UMID is also accepted as a valid ID in most transactions, making it one of the most powerful IDs in the Philippines. But unlike getting a passport, a UMID card application is much simpler and easier even for fresh college graduates who are starting out in their first job. Read more: National ID System in the Philippines: The Good and the…

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Top Car Insurance in the Philippines: How and Where Can You Get It?

Your duties as a responsible car owner don’t end with religiously following traffic rules or being a patient driver. You also have to set up a few measures that will protect you and your passengers from the uncertainties of the road. In this case, you need to get the right car insurance policy. Buying car insurance, however, isn’t as easy as you think. You can’t just purchase the first offer that comes your way. The whole thing takes some research and skill. Ending up with the right provider will not only offer you the ideal protection but also help you reduce insurance costs. If you’re a first-time car owner looking to insure your car or someone planning to switch to a new provider, this guide is for you. Here are some of the things to remember so you’ll be able to find the top car insurance in the Philippines. 5 Factors to Consider When Choosing the Right Car Insurance Company You need to have a set of standards when choosing the right car insurance company. If you don’t know where to start, you can use the following as your criteria: 1. Legitimacy While the insurance business is a regulated industry, there are still some fraudsters who will prey on clueless customers. With that, you need to determine the legitimacy of your prospective insurance company.  Don’t be carried away by the professional tone and appearance of the agents or their office’s elegant atmosphere. If you want to make sure that you’re dealing with a legit company, you can always check with…

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Get Your Maybank Credit Card Application Started with This Handy Guide

Maybank is a full-service commercial bank that has been operating in the Philippines for over 20 years. Currently, it’s serving around 200,000 customers with 65 branches and 93 automated teller machines in the country.[1] With a wide range of international-grade services, its credit cards are also worth exploring. Find out how to get one through this Maybank credit card application guide, so you can start enjoying exclusive credit card benefits from one of Asia’s leading banks.  Maybank Credit Card Application Steps Curious to know how to apply for a credit card from Maybank? Check the application process below. 1. Verify Your Card Eligibility Each bank has its own credit card eligibility requirements. When you apply for a Maybank credit card online,[2] you’ll need to answer a few screening questions:  Do you have an existing credit card with other banks for more than 10 months with a credit limit of at least PHP 30,000? Do you have an existing savings account with Maybank? If yes, does it have at least PHP 50,000 average daily balance for the last six months? Do you have an existing Maybank personal, auto, or housing loan? How do you best describe your employment? Locally employed, permanent, or regular employee Self-employed with profitable business Overseas Filipino Worker Note: To qualify for a Maybank credit card, you must be an existing credit cardholder of other banks or have an account or loan with Maybank. Otherwise, you won’t be able to proceed with your Maybank credit card application. Filipinos and foreign residents aged 21 to 65 years can apply…

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Build Your Dream Home with These Home Remodeling Steps

Maybe your taste in home aesthetics has changed, and this time, you want to try Japandi interiors.[1] Perhaps you’re expecting baby #3 and you want to add a room or two to your home. Or maybe you’re planning to sell your property. But before you put it on the market, you want to make sure that it will fetch a higher price. Such plans and goals will certainly require a home renovation. Mind you, a home remodeling project isn’t exactly a pretty process. It’s messy and expensive, and you may end up wasting a lot of money if you don’t have a thorough plan. If you want to tackle such a big project with confidence, check out this detailed guide we’ve put together for you. Home Remodeling Steps in the Philippines Granted that a home renovation is a big undertaking, being organized from the get-go will ensure that your plans will come to life as envisioned. Generally, a home renovation project is divided into three phases: planning, the actual home remodeling, and post-renovation. Following this structured and methodical approach will also keep you from wasting resources. Phase 1: Planning and Preparation Start strong by knowing what you want and putting it on paper. At this phase, you’ll also need to recruit the right people who will get the job done. 1. Picture Your Goal So, what’s your goal? Do you want to add another floor to your home or renovate just the façade? Maybe you want to give your old kitchen a makeover? You need to be definite with your…

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Where to Buy Second Hand Cars in the Philippines? 8 Options to Score the Best Deals

Online shopping has redefined the second hand car purchase process. Gone are the days when shopping for used cars meant spending a whole day hopping from one dealership to another and haggling for a lower price. Nowadays, you can easily search where to buy second hand cars in the Philippines online. Visit a buy-and-sell car website, type your desired make and model, and hit Enter. Within seconds, you’ll get an extensive list of second hand cars for sale. All you have to do is find the best deal for you and contact the seller to set up or negotiate the purchase. The best part of using buy-and-sell car websites? It doesn’t cost anything. You don’t even need to haggle—you can easily find cheap used car deals online. If you want to know where to buy second hand cars in the Philippines, check out the list below. Where to Buy Second Hand Cars in the Philippines 1. Carmudi Carmudi[1] is one of the top places where you can buy second hand cars in the Philippines. The website provides a host of useful services to enhance the buying experience for those looking for used cars in the Philippines. The most noteworthy is its multi-point inspection service that eliminates the uncertainty about a used car’s real condition. Some of the used cars undergo full inspection—from the interior to under-chassis—before they’re put up for sale online. Buyers can download an in-depth vehicle inspection report for free, which shows the components that passed the quality and safety checks. The report also recommends parts for repair or…

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Investments for Beginners: Find the Right Investment for You

Many of us Filipinos believe there’s only one way to make money—by working for it. Either you’re paid to provide a service or you earn from running your own business. However, there’s a second but less popular way to make money—making it work for you. This entails investing your money so that it earns more money. When you invest, your money earns interest over time, or you buy an asset and sell it later for a higher price when its value has increased. According to the Bangko Sentral ng Pilipinas (BSP) 2019 financial inclusion survey,[1] only 25% of Filipinos have some sort of investment.  Although it’s true that money doesn’t grow on trees, it can definitely grow if you invest wisely. Start with knowing the basics of investments for beginners through this guide. What is the Meaning of Investment? Many people use the term “investment” rather loosely for a number of things, despite not completely understanding investments for beginners. A newly bought BMW can be labeled as an investment. Buying MAC Cosmetics instead of a local brand is often considered an investment in quality makeup. You might even be guilty of “investing” in the latest mobile phone. With these labels, there’s a fine line between investing and splurging. But by learning about the real meaning of investment, you can figure out exactly when a purchase becomes an investment. An investment is an asset or item that is purchased with the hope that it will generate income or will appreciate in the future.[2] Based on this investment meaning, there are two…

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[Battle of the Brands] Suzuki S-Presso vs Toyota Wigo: Choosing the Mini Hatchback That Suits You

Mini hatchbacks are often associated with being budget-conscious and minimalistic. But there’s definitely more than meets the eye, as owning a compact car comes with a lot of benefits. First, smaller cars are easier to maneuver than sedans and muscle SUVs. With that, you can easily squeeze into tight spots. Small hatchbacks can also be conveniently parked into tiny slots. Overall, this is the perfect car if you live in a city with smaller streets and heavy traffic jams. Among the most practical hatchbacks to consider are the Suzuki S-Presso and the Toyota Wigo. Both have a proud Japanese heritage, so by default, you’re already assured of top-notch quality. But if you want to know which one will make a better choice, check out this Suzuki S-Presso vs Toyota Wigo guide. To make things clear, this comparison review features the brands’ base models. Suzuki S-Presso vs Toyota Wigo Review: Which is the Better Hatchback? Vehicle Selling Price The base prices of the Suzuki S-Presso and the Toyota Wigo are under PHP 600,000. The Suzuki S-Presso fetches a price tag of PHP 523,000 while the Toyota Wigo’s price starts at PHP 568,000. At present, the Suzuki S-Presso has only one variant. Toyota, on the other hand, has four, and the most expensive trim is priced at PHP 700,000. Winner: Suzuki S-Presso Read more: 21 Cheapest Cars in the Philippines You Can Buy in 2021 Car Insurance Cost Insuring your car is a must, so you need to factor in the annual insurance cost of the car that you’re planning to get….

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Bank of Commerce Credit Card Application: Requirements, Card Options, and Steps

Bank of Commerce is a commercial bank in the Philippines that started operations in 1963. In 2008, San Miguel Group invested in the bank, further strengthening its operations. Today, a Bank of Commerce credit card, among many other financial products, is offered in 140 branches of the bank nationwide.  If you want a credit card that’s accepted in more than 30 million establishments worldwide, then let’s kick off your Bank of Commerce credit card application with this guide.  Bank of Commerce Credit Card Application Steps Before you begin your Bank of Commerce credit card application, make sure to follow these steps.  1. Check Your Eligibility for a Credit Card To be qualify for a Bank of Commerce credit card, you should meet these eligibility requirements: 21 to 65 years old for principal cardholders; at least 15 years old for supplementary cardholders Filipino or foreign resident in the Philippines Earning a minimum monthly income for the following credit cards: Classic Mastercard – PHP 10,000 Gold Mastercard – PHP 38,000 Platinum Mastercard – PHP 100,000 With an active landline number (office/ business/residence) and a postpaid mobile number 2. Complete Your Bank of Commerce Credit Card Requirements If you want to get a Bank of Commerce credit card, you need to provide the following: Accomplished Bank of Commerce Credit Card Application Form[1] Photocopy of any valid government-issued, photo-bearing ID 📌 Employed applicants also need to submit any of these documents: Proof of income (Certificate of Employment,  latest 2316 or income tax return, payslips) 📌 Self-employed credit card applicants need to provide these additional documents:…

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Ready to Upgrade Your Home? Here’s How to Finance a Home Renovation

More often than not, when people talk about home renovation, they actually talk about building their dream house. But that’s not the only reason property owners want home improvement projects.  Some want to turn their homes into a money-making asset, such as a rental property, whether for long-term residents or Airbnb bookers. Others want to add rooms and kid-friendly features to accommodate their growing family. Moreover, you’ll always find people who will remodel their properties before selling them so that they’ll fetch a higher price. Regardless of your plans, the biggest question that you’ll need to ask is how you’re going to pay for it. Pinning this down early on will keep you from making costly mistakes in the future.  Thankfully, there are a few practical ways to finance a home renovation. We’ve listed them down below, plus a few handy tips on how to save on renovation costs while maximizing your budget. Ways to Finance a Home Renovation in the Philippines The method of paying for your home improvement project will depend on two things: the amount of money that you have or are willing to borrow and the size of the property to be renovated. Throughout the project, all your decisions should be guided by these two variables.   In the Philippines, there are five ways to finance your home renovation project aside from a regular housing loan. Each one caters to different needs and has its pros and cons. Let’s take a closer look to determine which one suits you best. Save Up and Pay Cash Perhaps, the…

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Are Personal Loans Bad? Here’s When You Should Not Get One

Personal loans are probably one of the first options you’ll consider when caught in an emergency financial situation. However, some borrowers who find it difficult to pay back their loans consider personal loans as nightmares. This leads us to the question: Are personal loans bad? Do the disadvantages of personal loans outweigh the advantages?  Personal loans are financial tools that can help you with your financial problems. However, they can also be quite damaging when used for the wrong reasons. When are personal loans bad, and when are they helpful? Moreover, what are the best ways to use personal loans to improve your finances? Are Personal Loans Bad? They’re bad only when used for the wrong reasons. Often, they become a burden instead of a relief because borrowers get the money only to address unpleasant situations without thinking about the consequences. Here are a few situations when personal loans can be bad for you. Using Personal Loans to Pay for Basic Needs Basic needs are supposed to be covered by your monthly income. For most Filipino families, this can still be difficult even with a regular monthly income. According to the National Economic Development Authority (NEDA), a typical Filipino family of five should have a monthly income of at least PHP 42,000 to live comfortably,[1] and this PHP 42,000 can be broken down into the following:  PHP 3,150 for 25 kilos of rice PHP 17,160 for other types of food PHP 21,840 for non-food items Say you apply for a loan worth PHP 40,000 to cover your family’s basic needs….

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Seaman Loan: Important Things to Know + 6 Loan Options to Consider

When people talk about seafarers, they may paint a picture of someone who comes home with truckloads of chocolates and deep pockets that will never run out of money. But this is often a far cry from reality. While a lot of seafarers are actually making big bucks, some are dealing with financial challenges. This is because a large chunk of their earnings usually go to important investments, such as house construction and business, or family support. When seafarers come home, it usually means that their contract has ended. While they‘re trying to secure a new employment contract, their expenses just keep on coming, which will eventually prove to be problematic. Thankfully, seafarers can apply for a seaman loan in case they need cash for funding their application or starting a business while waiting for their enlistment. If you’re a cash-strapped seafarer, here’s what you need to know about seaman loans. What is a Seaman Loan? A seaman loan is a loan designed for those working in the shipping and marine industry. Seafarers, such as captains, engineers, cooks, cleaners, and cruise workers, can benefit from this type of loan. Seaman loans are multi-purpose in nature, which means that you can use it for any purpose that you may have. Other than helping you fund your new application for a seafaring post, you may use it to fund your kid’s education or pay your medical bills and other emergency expenses. It must be noted, though, that the usage of the loan will depend on the terms and conditions of the lender….

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SAFC Loan Guide: What to Know About South Asialink Finance Corp’s Loan Products

A lot of people who need extra funds often go for unsecured or non-collateral loans. Primarily, this is because unsecured loans providers are easy to find. Also, you won’t have to worry about surrendering any asset to borrow the cash that you need. Nevertheless, getting a secured or collateral loan still makes a great choice, especially if you’re in a bind and require a huge amount of money. In this case, working with a reputable loan provider, such as South Asialink Finance Corporation (SAFC), is a wise move. The company is known for its vehicle collateral loans. So if you have a car or a truck, this one’s for you. Moreover, South Asialink Finance Corporation has financing products for those who are looking to buy a car or a truck. Here’s what you need to know about the SAFC loan. Who is South Asialink Finance Corporation? Founded in 2003, South Asialink Finance Corporation or SAFC is a former division of Asialink Finance Corporation. SAFC is a private financing company that offers retail credit to individuals and small and medium enterprises (SMEs).[1]   Currently, the company operates mainly in Southern Luzon, from Laguna Province to Bicol Region. As of November 2019, there are 42 SAFC branches in the whole area of South Luzon and Cebu. What are the SAFC Loan Products? If you’re curious to know what loan products you can avail, here are SAFC’s collateral loans and financing products.[2] 1. Car Loan If you need emergency cash, you can have your car as your collateral. You’ll just have to submit your…

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Participation Fee for Car Insurance: What is It and Why is It Needed?

There are typical questions one may ask about their coverage or specifics on the policy they’ve acquired. Among these questions involve the participation fee for car insurance. “How much is my participation fee?” “Why do I have to pay a deductible for my car insurance?” Still have a vague idea of this car insurance cost? Here’s what you need to know about the car insurance participation fee in the Philippines. What is the Meaning of Participation Fee? A participation fee is an amount you pay out-of-pocket to your car insurance provider every time you make a claim before the insurer shoulders the rest of the claim value. Participation fee payment is one of the requirements for most car insurance claims. As a policyholder, you’re required to “participate” in your car insurance cost. Essentially, this means you share in the expenses for repairing your damaged vehicle after an accident. Why Do Car Insurance Providers Charge a Participation Fee? Car insurance companies require their clients to pay participation fees once they file a claim for vehicle loss or damage, like during the aftermath of Typhoon Ondoy in 2009 when claims spiked in Metro Manila. There are three main reasons why insurance providers charge a participation fee: The driver of the vehicle is liable for any damage it incurs in an accident. Participation fees discourage people from committing fraud when filing a claim. These insurance fees prevent car owners from abusing their insurance benefits by claiming minor vehicle damage. Read more: Affidavit for Car Insurance Claim: Why You Need It and How to Get…

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