Are your comprehensive car insurance premium payments hurting your budget?
Different factors affect car insurance price in the Philippines. Some of them you cannot control, but there are actions you can take to increase or decrease car insurance cost.
Here are the different ways to save money on your comprehensive car insurance policy.
1. Increase Your Deductible
A deductible is a part of the participation fee
that you pay out of the pocket when you make a car insurance claim.
Under the Insurance Commission's Motor Car Tariff
, the minimum deductible for private vehicles is PHP 2,000 (or 0.5% of the unit's fair market value, whichever is higher) and PHP 3,000 for commercial vehicles (or 1% of the unit's fair market value, whichever is higher).
You can pay an amount higher than the standard deductible to reduce your monthly car insurance premiums.
But note that your out-of-pocket expenses will be higher when you get involved in a car accident. To minimize the risk of an accident, always practice safe driving and keep your vehicle well-maintained
2. Maintain a Good Driving Record
Your driving history is one of the factors that insurance providers consider
when setting your comprehensive car insurance price.
The longer you drive without figuring in an accident or traffic violation, insurers will see you as a low risk and quote you with a lower premium. Some car insurance providers even offer discounts to policyholders who had no claims for an entire year.
Improve your driving habits, follow traffic rules, and if necessary, take a defensive driving course from a driving school
. Not only will you save lives, but you'll also save money by being a safe and responsible driver.
Read more: 9 Driving Mistakes That are Most Likely to Kill You
3. Improve Your Credit Score
Your credit score
plays an important role in the computation of your car insurance price. Like banks and lenders, insurance companies have access to and submit credit reports of their clients to the Credit Information Corporation, the central credit registry in the Philippines.
Also, studies prove that people who are responsible with their finances tend to be as responsible with other things—such as driving—and are therefore less likely to make a claim.
Thus, a number of car insurance providers consider credit scores when setting premiums.
Having a bad credit score
can work against you. You may be paying higher premiums. To lower your car insurance rate, pay your bills and debts on time, check your credit score, and have it corrected (if needed).
4. Choose a Vehicle That Costs Less to Insure
This tip is crucial for first-timers who will purchase a new car along with their insurance policy. Different factors such as a vehicle's fair market value, safety, and make, model, and year affect a car insurance price.
Here's what to look for in a vehicle if you're trying to save money on car insurance cost
- Less expensive models—like those from Toyota, Honda, and Nissan—with lower repair costs than premium models and replacement parts that are readily available in the Philippines
- Economical vehicle types such as hatchbacks and sedans
- Safety and security features such as airbags, anti-lock braking system, car alarm, and anti-theft devices
5. Compare Car Insurance Quotes
Car insurance comparison is a critical step in reducing your premium. It lets you know how much it will cost you to insure your vehicle from different insurance providers and allows you to compare rates.
Ideally, get car insurance quotes from as many companies as possible. Provide correct and complete data because the quotes you'll get will depend on them. Compare not just the price but also the coverage, benefits, exclusions, accredited repair shops, and the reputation of various insurance firms.
You can get free car insurance quotes from multiple companies when you do your comparison shopping at MoneyMax.ph. It will take you just less than a minute to fill out an online form, and the site will instantly come up with a personalized car insurance comparison table for you. You can view all the information you need to find car insurance with the best coverage at the cheapest cost.
6. Get a Cheap Car Insurance Price Through an Online Broker
Did you know that you can save as much as 50% when you compare car insurance rates and get a comprehensive car insurance policy
through an independent online broker in the Philippines?
Although getting car insurance through a bank or an auto dealership is convenient, it can lead to an expensive premium.
Aside from helping you secure a low car insurance price, an online broker facilitates a hassle-free claims processing
. MoneyMax.ph, for example, has a dedicated claims team that can assist you when filing a claim and a team of advisors that can answer any questions you may have about car insurance.
7. Ask Your Agent About Discounts
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Photo by Circula Seguro via Flickr, Creative Commons[/caption]
If you want something, all you have to do is ask. This holds true when you want to lower your car insurance cost.
Ask your agent if you qualify for any discount. Some car insurance companies offer discounts to policyholders who have not filed a claim for a certain period. You may also enjoy car insurance price reduction if your car has plenty of safety features. If you avail of multiple insurance policies
from one provider—like home insurance and accident insurance aside from car insurance—it's good to ask if you can get a discount on your premiums.
8. Opt Out of Unnecessary Add-Ons
Review your car insurance policy to determine which riders or add-ons you don't need. Unnecessary riders only add to your car insurance cost without much use.
For example, you don't need to avail of the personal accident coverage if you have an existing policy for accident insurance. Also, consider striking out car rental coverage from your policy if you have a spare car in the garage you can drive when your main car is undergoing repairs.
When you renew your policy, talk to your agent about removing any add-on you don't actually need.
It pays to be smart when you're trying to reduce your car insurance price. May these tips help you make insurance costs easier on your budget.