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Getting a car insurance can be confusing, especially for first-time vehicle owners. With more than 60 car insurance providers in the Philippines, finding the right insurer is definitely a test. However, never settle for less. Buying an “okay” car insurance can be a pain so be wise and understand your policy from start to end. To land a more beneficial insurance deal, take the time to understand the car insurance market. Here’s an in-depth guide to help you out.

Factors that Affect Comprehensive Car Insurance Rate

Not all insurance rates are equal. Unlike CTPL, comprehensive car insurance policies don’t have a fixed rate as they depend on many factors. Below, gain a better understanding of the car insurance market by determining the factors that affect a policy’s rate.

How Car Insurance Companies Earn

According to the World Health Organization, 1.25 million people around the world die every year because of road crashes. If all of these people file a claim for their accident—amounting to millions or even billions of cash—will car insurance companies still earn? The answer is yes. Despite millions of claims, car insurance companies still take home a profit ultimately contributing to industry growth. The concepts that keep car insurance companies profitable work the same way today as they did 40 or 50 years ago. This is why the industry keeps growing and why new insurance companies sprout almost every decade. To understand this better, here are three basic principles that make car insurance companies earn.

Premiums

When you buy an insurance policy, you are required to pay a fee called a premium. Car insurance companies put this premium to short- and long-term interest-earning investments to grow and secure their funds. Interest earnings represent a large source of the overall profits insurance companies generate.

Underwriting Income

Underwriting income derives from the difference between how much money insurers collect for policies and how much money insurers release when a client files a claim. For example, if a client pays P20,000 for a premium policy with a validity of one year but only submits P5,000 worth of claims, the insurance company automatically earns P15,000 from that client. However, if the insurance company pays more than P20,000 for the claim, then they suffer a loss.

Re-Insurance

Insurance companies also buy policies for themselves. When insurers have too many claims, they purchase policies from other providers to keep them in business. This strategy utilizes the concept of shared risk and limits of liability.

A Look Into the Car Insurance Market: Top Companies in the Philippines

AFP General Insurance

AFP General Insurance is the primary non-life insurer provider of the Armed Forces of the Philippines. Established in 1979, AFPGEN has extended their services to private sectors providing motorcar, marine, and aviation insurance coverage.

Charter Ping-An

Founded in 1960, Charter Ping-An Insurance Corporation prides itself on providing not just car insurance but non-life insurance and security products as well. Owned by AXA Philippines, the company has 22 branches nationwide.

FPG Insurance

Formerly known as Federal Phoenix Assurance Corporation, FPG Insurance provides a comprehensive range of general insurance products for businesses and individuals in the Asia Pacific region. The company is a subsidiary of the Zuellig Group of Companies.

MAPFRE Insular Insurance Corporation

Launched in 1934, MAPFRE is the largest non-life insurance company in Latin America. Primarily established as an automotive insurance provider, the company now offers Travel Insurance, OFW Insurance, Engineering Insurance, and Surety Insurance among many others.

Milestone Guaranty and Assurance

Milestone Guaranty and Assurance Corporation began their operations in 1962 when only few insurance companies were operating in the Philippines. Committed to providing top-notch non-life insurance policies, the company provides comprehensive plans, including Casualty Insurance, Engineering Insurance, Personal Accident Insurance, and Motor Insurance among many others.

Oriental Assurance Corporation

Apart from motorcar insurance, Oriental Assurance Corporation also provides general insurance products such as fire, marine, aviation, engineering, and electronic equipment solutions. The company promises unique insurance needs at a reasonable price.

Pioneer Insurance and Surety

Pioneer Insurance and Surety Corporation is one of the leading insurance companies when it comes to property, marine, motor, and aviation policies. Established in 1964, the company is in partner with Allianz AG of Germany, a financial services company that focuses in insurance and asset management.

QBE Seaboard Insurance

Despite being new in the industry, QBE Seaboard is one of the world’s top 20 general insurance companies. Headquartered in Sydney, Australia, the company provides insurance products to businesses and individuals worldwide.

SGI Philippines

SGI Philippines is one of the largest insurance companies in the Philippines. They aim to serve different sectors with quality insurance products such as motor, health, and marine. Their latest product—Micro Insurance—services the risk and protection needs of the masses at an affordable price.

Standard Insurance

Standard Insurance offers a wide range of property and general insurance products for individuals, small to medium enterprises, and local and global corporations. They are one of the leading motorcar insurance companies in the Philippines with more than 52 branches nationwide. For a more complete list of car insurance companies in the Philippines, click here.

Getting a comprehensive car insurance can be challenging, especially for first-time vehicle owners. However, it doesn’t always have to be that way. By comparing insurers, you can get a policy that does not only suit your vehicle but your lifestyle and budget as well. Don’t let the process baffle you. Below is a quick guide to getting a comprehensive insurance policy.

1. Compare providers

At present, there are more than 60 car insurance providers in the country. Going through all of these companies may be worth it, but it’s still a waste of time. To find the best provider, it is advisable to take advantage of comparison platforms like MoneyMax.ph. Other than sorting your options more easily, this allows you to find the most cost-effective policy as well.

2. Choose add-ons

If you’re feeling generous, why not add more features to your policy? Apart from basic coverage, you can also purchase add-ons such as Road Assistance, Loss of Use, and Acts of Nature, among many others. This, of course, depends on your needs and budget. Ask your insurer about this and don’t forget to take note of additional benefits included in your basic policy.

3. Prepare requirements

After choosing an insurer, it’s time to prepare the paperwork. Here are the requirements you will need:

• Original vehicle receipt
• Your vehicle’s Certificate of Registration
• Your driver’s license
• Another government ID

Your provider may request additional copies of your original receipt and COR so prepare these, too.

4. Expect your policy

Once you’ve submitted the documents, the next step is to receive your policy. You will receive a digital copy through e-mail as well as a hard copy, which should arrive at the address you provided. Don’t forget to read the fine print and ask about any terms you find disagreeable with your insurer.

5. Pay your insurance

This may occur before or after receiving your policy. You can pay direct to your insurer, by credit card, or even online.

How to Save Money on Your Car Insurance Policy

Owning a car in the Philippines is not cheap. It can set you back more than PHP 100,000 each year in fuel, loan payments, car insurance, maintenance, and other expenses. To cut costs, some Filipinos choose not to get car insurance or just avail of the government-mandated Compulsory Third Party Liability or CPTL coverage. This could shave off an average of PHP 20,000 from your annual auto-related expenses. But is forgoing auto insurance really worth it? Opting out from insuring your car is risky and will cost you more in the long run. Road accidents can happen anytime, or your vehicle could be stolen. Without an insurance, nothing can protect you against the financial loss and other setbacks these unfortunate events could bring about. You can cut your car costs without losing the benefits of having your car insured. Here are 10 tips to help you save money on your car insurance and get the most out of your policy.

1. Buy a Car That is Cheaper to Insure

Your car’s make and model can affect how much insurance premium you will be paying. The more expensive a vehicle is, the higher its insurance cost. Luxury and high-performance vehicles have advanced and complex parts that may need to be imported from abroad. This makes them more expensive to replace than conventional parts. Premium car makes like Audi, BMW, Mercedes Benz, and Porsche are more expensive to insure because of their high repair costs and lower depreciation rates. In contrast, Honda, Nissan, and Toyota models come with cheaper insurance rates, as their components are available in the Philippines. If you want to save significantly on your car insurance premiums, opt for an economical vehicle. Regular sedans, hatchbacks, and small SUVs are the ideal choices for money-savvy car buyers.

2. Compare Car Insurance Quotes

Saving on your car insurance costs starts with getting quotes from different insurance providers in the Philippines. This will allow you to compare your options to find one with the best deal for the benefits you need. Car insurance rates vary from one insurance company to another. Thus, it is best to collect as many car insurance quotes as possible. Shop around and compare your options meticulously. This will help you determine which one can save you money while enjoying the benefits of a car insurance. Calling up each provider to ask for car insurance quotes is good. But doing so can eat up much of your time. Make the process a lot easier for you by taking advantage of online tools such as MoneyMax.ph that can help you compare car insurance quotes in just a few minutes. When you compare car insurance quotes, do not just look at the rates. Offering the lowest premium does not mean an insurance is the best option. You also have to check the coverages, exclusions, benefits, and the reputation of each insurance provider you are considering.

3. Ask About Discounts

Yes, your car insurance provider may be offering discounts and special rewards that you are not aware of. Check with the insurance company if you qualify for discounts. More often than not, insurers do not let their specific discounts known unless you inquire about them. Some providers allow comprehensive insurance policyholders to enjoy a no-claim bonus, which comes in the form of a 10% discount on their premium for each year that their coverage is not used. If you do not make a claim for several years, you may be eligible to avail of the no-claim bonus. Is your car equipped with safety and security features such as anti-theft devices, airbags, anti-lock brakes, and car alarm? Your insurance provider might also give you discounts because your vehicle poses a lower risk of car theft and personal injuries. There are also insurance companies that provide price reductions to people who have multiple policies with them. So if you are planning, for example, to insure not just your car but also your home with an insurance provider, it does not hurt to ask the company if they can give you a discount for that.

4. Remove Any Coverage You Do Not Need

Go over your car insurance policy and check every detail. You may not need some extra benefits that you can remove to lower your insurance costs. For example, if you are already a member of an auto club in the Philippines where you enjoy privileges such as roadside assistance, then it makes sense to eliminate this coverage from your car insurance. Do you have a second car at home? Another way to save money on car insurance is to forgo the car rental coverage—you will not need it anyway because you have an extra car to drive when your insured car is at the repair shop. You may also want to consider removing the personal accident coverage from your car insurance if you already have an existing accident insurance provided by your employer.

5. Raise Your Car Insurance Deductible

Did you know that increasing your deductible amount can reduce the car insurance premium you are paying? A deductible is an amount you shoulder when you claim an insurance before your insurer pays the rest of the auto repair costs. In the Philippines, there are standard deductibles under the Motor Car Tariff. For private vehicles, the standard deductible is 0.5% of the sum insured with a minimum of Php 2,000. For commercial vehicles, it is 1% of the sum insured with a minimum of Php 3,000. To earn a discount on your car insurance premium, you can opt to raise your standard deductible. But be careful not to raise it too much because it might put you in a messy financial situation when the time comes that you need to file an insurance claim.

6. Pay Your Premium in Full

You can further cut down on your car insurance costs if you pay your premiums in lump sum every year rather than pay in monthly installments. Your insurance provider might give you a discount if you make full annual premium payments because it will involve less frequent manual processing of your payments. Some insurance companies, on the other hand, charge extra fees to policyholders who choose to make monthly premium payments. Another advantage of paying your car insurance premium in full is that you can get that cost out of the way, so you can focus on your other important expenses.

7. Install Safety Features in Your Car

A money-savvy car owner is also a safety-conscious driver. This fact could not be any truer when it comes to reducing your car insurance costs. Many car insurance companies are willing to lower the premiums of drivers who can prove that their vehicles are safe and secure. There are several ways to reduce the risk of your ride getting stolen or figuring in an accident. For instance, equip your vehicle with safety features such as anti-theft and engine cut-off systems, anti-lock brakes, and a dashboard camera. A dash cam can also speed up insurance claims processing, as its video can provide insurers a proof of what happened during an accident. Also, make sure to have a secure garage for your car, as it can reduce the risk of carnapping. Just parking your car on the street will make it prone to getting stolen. When you apply for car insurance, make sure you indicate all your car’s safety features so that the provider will take them into consideration when computing your premium.

8. Practice Defensive Driving

Aside from adding safety equipment to your vehicle, being a responsible and defensive driver matters. It is not only for your own safety but also for cutting down on your car insurance costs. If you have a claim history within a year, your insurance provider might charge you higher premiums. So you must avoid bad driving practices such as overspeeding, tailgating, and using your mobile phone while driving. Aside from reducing the risk of a road accident, this will lessen your chance of claiming an insurance and will entitle you to a discount on your car insurance premium.

9. Avoid Coverage Gaps

As much as you can, avoid gaps or lapses in your car insurance coverage. This happens when you fail to keep your car insured for a certain period, such as when your policy gets canceled or you make late premium payments. A gap is also likely to happen when you have ended your policy and have taken quite a while to switch to another car insurance company. You do not want to have insurance coverage gaps because that will likely cause your premium to increase. Make sure you pay your premium on time to prevent these gaps and save money on your insurance. Also, when you get a new car insurance from a different provider, do not terminate your existing one until your new policy becomes active.

10. Ask For a New Quote When Renewing Insurance Policy

Over time, your vehicle will depreciate in value, which could lead to a lower insurance premium. Moreover, if you have not filed any claim because you have not been in an accident, this could also affect your car insurance rates. In those instances, you can expect to get lower quotes. Request your insurer to give you new car insurance quotes each time your policy is up for a renewal.

Learn how to properly prepare for a car insurance claim and what to do to ensure a smooth claims processing. You have been spending a lot of money to pay your car insurance premiums, so naturally, you will want to make a claim when your vehicle gets involved in an accident. Filing a car insurance claim in the Philippines ensures that you will receive assistance and compensation for the loss of your car or the damage it has sustained following an accident. This way, you can save money and have the peace of mind knowing that everything will be taken care of without causing you any financial burden. Dealing with situations like a car accident or stolen car is stressful as it is. You do not need the added stress of handling problems related to your insurance claim. So before anything unfortunate happens, you need to be familiar with your car insurance coverage and how to file a claim properly. Note that this article is meant to serve only to guide you through the process of making a car insurance claim. Car insurance providers in the Philippines have different requirements, procedures, and other things related to claims, so it is still best to contact your insurer for the specifics of your policy.

What to Do After the Incident

When you figure in an accident, remember to stay calm and have the presence of mind to do the things that will help speed up the processing of your insurance claim. Here are the steps you must take after you have met an accident or a carnapping incident:

1. Report it to the police

The police will gather the needed details (such as the names and contact information of victims, drivers, and witnesses), investigate the incident, and note the damage to vehicle and property. Do not forget to request a police report, as this is one of the requirements when you file a car insurance claim. If there’s no police officer in the area, write down and sketch the details of the accident. Ask all the parties involved to sign the document and sketch.

2. Take pictures of the accident scene

Using your smartphone camera, take as many photos as possible of the entire scene (with the actual vehicle position), a close-up view of the damaged portion of your vehicle showing the plate number, and other vehicle involved in the collision. Below is a guide for when taking photos of the accident. Front: Side: Back: Another important evidence is the video captured by the dash cam of the cars involved in the incident. Make sure to keep this as a proof of what actually happened.

3. Get all the important information

Exchange the following information with the other party:

• Names, contact details, and address of the other party, the registered owner of the car, and witnesses
• Model and plate number of the cars involved
• Driver’s license number
• Details of the car insurance policy of the other car

If the other party in the accident fled and you were unable to identify the other vehicle, talk to the witnesses to gather the information you need.

4. Undergo a medical examination

This step is important to secure a medical certificate, one of the insurance claim requirements, that indicates the extent of the injury sustained and the required treatment or medication.

Below are some important terms to remember when filing a claim:

How to File a Car Insurance Claim

Once you have gathered all the needed information and documents after the incident, you can proceed with filing your claim. The first thing you have to do is to contact your car insurance provider immediately and report the damage or loss. Provide the following information:

• Nature of vehicle damage/loss
• Date and time of the incident
• Your contact details
• Policyholder’s name
• Policy number
• Nature of claim (i.e., own damage, theft, third-party bodily injury, etc.)

The insurance company will walk you through the next steps regarding your insurance claim. It will also provide you with instructions on what to do with your car, a list of accredited car repair shops, and the documents you need to submit.

What are the Basic Requirements for Filing a Claim?

When making a car insurance claim, the insurance provider will require you to present certain documents. These will aid in evaluating and processing your claim.

• Police report - It must contain a detailed account of how your car was damaged (in case of own damage) and who is at fault (when the accident is somebody else’s fault).
• Accomplished insurance claim form - You can either fill out an online form if the insurer’s website has it or go to the company’s office to complete the form in person.
• Photos of the damaged or lost parts of your vehicle, as well as the full view of the car showing the plate number
• Car repair estimate
• Photocopy of driver’s license with official receipt (OR)
• Photocopy of certificate of vehicle registration with MVRR number
• Additional requirements:

Are There Additional Documents Required for Claim Processing?

Aside from the basic documents, you will also need to prepare other documents depending on the situation.

For auto passenger personal accident claim:

• Valid ID (photocopy)
• Birth certificate (photocopy)
• Marriage certificate (if applicable)
• Certificate of employment
• Original copy of medical certificate and medical receipts with prescription
• Certified true copy of death certificate
• Certified true copy of funeral bills or receipts

For third-party bodily injury claim:

• Valid ID (if the third party is of legal age)
• Birth certificate (if the third party is a minor)
• Original copy of Medical Certificate and medical receipts with prescription
• Income tax return (in case of loss of income)

For third-party death claim:

• Valid ID of heirs or claimants (photocopy)
• Birth certificate (photocopy)
• Marriage certificate (if applicable)
• Certified true copy of death certificate
• Certified true copy of funeral bills or receipts
• Income tax return (in case of loss of income)

For third-party property damage claim:

• Letter of claim from a third-party insurer or claimant
• Police sketch plan of the accident scene
• Original copy of Certification of No Claim issued by the third-party insurer (for vehicles)
• Proof of ownership (for non-vehicle properties)

For lost or stolen vehicle claim:

• Full set of keys of the lost car
• Car insurance policy (original copy)
• Alarm Sheet and Complaint Sheet from the Traffic Management Group or TMG (original copies)
• Certificate of Non-Recovery from TMG (original copy)
• Original copy of Cancellation of Chattel Mortgage (if applicable)
• Letter of release from financial institution (if applicable)

What to Expect After Filing a Car Insurance Claim

When you have submitted all the requirements, the insurance provider will begin to inspect and evaluate the damaged car. How long the processing will take depends on the complexity of your claim. It can take as fast as 1 to 3 days. Some car insurance claims take weeks or months to process, so you may need to follow up with the insurer from time to time. If your claim is approved, the insurance company will issue a Letter of Authority (LOA), which means you can have your vehicle fixed by the insurer’s accredited dealership. The car repair shop will only begin the repair upon the release of the LOA.

Possible Reasons Your Claim May Get Rejected

Not all auto insurance claims end up in an LOA release. A claim may get rejected if the type of vehicle damage is not covered by the policy. Failure to follow the terms and conditions of your car insurance may also lead to a claim rejection. Thus, you need to know the common factors that might disqualify you from making a car insurance claim:

• Damage caused by a natural disaster if your policy does not have an Acts of Nature coverage
• Damage caused by war, riots, or public disturbance
• Causing injury or property damage intentionally (e.g., road rage)
• Accepting settlement with the person at fault in an accident
• Unlawful activities such as driving without a license (or with an expired license), drunk driving, and violating traffic rules (e.g., beating the red light)
• Unpaid premiums
• Policy named under a person who is not driving the car
• The vehicle has damaged parts (e.g., broken headlights, worn-out brake pads, etc.) prior to the accident

Read carefully the terms and conditions of your car insurance policy so that you know what you are entitled to and when you can make a claim. Make sure also to regularly pay all your premiums to avoid getting your insurance claim denied.

What to Do if Your Claim is Denied

If the car insurance provider rejects your car insurance claim and you disagree with the reasons given to you, you can file a dispute with the company and request for a review. If you are still unhappy with the insurer’s decision after your claim dispute has been reviewed, you may seek help from the Insurance Commission that supervises insurance companies in the Philippines. This government agency assists in the settlement of any claim issue between an insurance provider and a policyholder. You may contact the Insurance Commission via email (publicassistance@insurance.gov.ph) or visit one of its offices in Manila, Cebu, or Davao. Now that you know the things you need to do and prepare after an incident, you can be sure that your car insurance claim process will be a smooth experience. You will also need not worry much about your car repair expenses once you get compensated for the damage incurred from an accident.