What to Compare When You Compare Car Insurance

Published: January 20, 2015 | Updated: July 23, 2021 | Posted by: Moneymax | Car Insurance


Comparing Car Insurance
When buying an expensive car, you’re investing on a mode of transportation. It’s only natural to want to protect this investment by applying for vehicle insurance. Most countries require a compulsory third party liability insurance coverage to cover accidents that may occur over time. More coverage in your car insurance policy, however, provides you with a lifetime perk called “peace of mind.”

Choosing the right car insurance from the right insurance provider might be tricky, however. This is because there are a number of things to consider before you decide on a car insurance provider to choose. You have to take into consideration the following: Coverage, Exclusions, Premium, Excess or Deductibles, Claims Service and Procedure, and the insurance company’s stability.

Coverage

A comprehensive car insurance is something people would want for their brand new automobile. There are many types of coverage you can get: liability coverage that helps you pay for any accidents, injuries, or damage for the people involved in the accident; a policy that covers costs if your car is stolen or damaged but was not involved in an accident; insurance coverage that helps you cover costs if you are hit by someone (or you hit someone) without insurance.

Minimum coverage on car insurance shouldn’t be all you should get. Make sure that you cover all your bases: third party liability insurance, uninsured/underinsured coverage, personal injury protection, as well as property damage liability, collision coverage, and coverage against theft.

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Exclusions

Of course, not all insurance policies give you everything you need or want. There will always be an exception to the rule; in this case, they are called exclusions. For example, coverage against injuries caused by car accidents might not be included with your car insurance. Your car insurance might also exclude any coverage for accidents, injuries, or damage when the car insured was not being driven by the car owner.

When comparing or looking for your car insurance, always check what exclusions they have. They might not be including something in your coverage that you need.

Premium

The amount of money charged for your insurance coverage, called premium, varies from person to person. This is because not all two people who own a car is the same. A young man in his twenties getting his car insured might have a higher premium for his car insurance than a middle-aged office worker. This is because a younger driver poses a bigger risk than an experienced driver.

Your premium, of course, will also vary depending on your bank. The bank or lending agency you get your insurance from will dictate the interest rates your premium will have. This depends on the make and model of your car, as well as the year it was made, and so forth. When comparing for your premium, be as accurate as possible when asked about details on your car!

Excess or Deductible

An excess or deductible is an amount of money you pay for out of your own pockets before or after the insurer pays for any expenses. For example, a deductible will apply to your claims of damage from your vehicle. Your coverage of PHP 10,000 for damages might have a deductible of PHP 2,500. That means you have to pay for the PHP 2,500 cost, and the insurance company will pay for the rest. If your total bill costs PHP 12,500 and your coverage is only up to PHP10,000, you have to pay the excess of PHP 2,500.
Check the policies if you have any excess or deductibles in the insurance policy you are looking at. Keep in mind that the smaller the excess or deductible, the higher the premium for your policy.

Claims Service & Procedure

This might involve a little sleuthing. Scour the internet and various mailing lists or forums for information on how easy or difficult it is to file for and receive insurance claims from the company you plan on getting insurance from. While their procedure might be listed on their website, there might be problems that occur when you line up in their offices.

Other people’s experiences when filing for and receiving their claims will tell you how the insurance company or bank treats their clients. You would want to have an insurance company that takes good care of their customers and provide them with a clear-cut and smooth claims service and procedure.

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Company Stability

When you’ve narrowed down car insurance offers, ask yourself a few questions about the providers: are they a stable company? A relatively new company? An established company? Is this company affected by economic inflation and might go bankrupt?

You want to make sure the insurance company you’re signing up for can be relied on! This is so that you won’t be wasting your money on an insurance company that might not even give you back all the money you’ve given them after they go bankrupt.

There might be too much information to check out before picking your car insurance. In the end, knowing what to compare and what to look for in car insurance can help you save time, money, and effort, so you can spend them on more important things—like your family!

Find the right car insurance for you now. Compare car insurance plans with the help of MoneyMax.ph and apply directly online. Save money on your car insurance now!

Car Insurance CompanyFeatures
MAPFRE Insular

Get Free Quote
  • 10 years of casa eligibility
  • 366 accredited repair shops
  • PHP 5,000,000 maximum total sum insured
  • Overnight accommodation - Yes, up to PHP 3,000
  • Towing - Yes, up to PHP 5,000
  • Vehicle removal crane services - Yes, up to PHP 10,000
Malayan Insurance

Get Free Quote
  • 3 years of casa eligibility
  • 58 casa repair shops
  • PHP 7,500,000 maximum total sum insured
  • Overnight accommodation - Yes, up to PHP 1,000
  • Towing - Yes, up to PHP 4,000
  • Vehicle removal crane services - Yes, up to PHP 8,000
New India Assurance

Get Free Quote
  • 10 years of casa eligibility
  • 30 accredited repair shops
  • PHP 3,500,000 maximum total sum insured
  • Overnight accommodation - Yes, up to PHP 1,500
  • Towing - Yes, up to PHP 4,000
  • Vehicle removal crane services - Yes, up to PHP 10,000
Prudential Guarantee

Get Free Quote
  • 10 years of casa eligibility
  • PHP 3,000,000 maximum total sum insured
  • Overnight accommodation - Yes, up to PHP 2,000
  • Towing - Yes, up to PHP 5,500
  • Vehicle removal crane services - Yes, up to PHP 15,000
SGI Philippines

Get Free Quote
  • 5 years of casa eligibility
  • 36 accredited repair shops
  • PHP 5,000,000 maximum total sum insured
  • Overnight accommodation - Yes, up to PHP 2,000
  • Towing amount - Yes, up to PHP 5,000
  • Vehicle removal crane services - PHP 10,000
Stronghold Insurance

Get Free Quote
  • 10 years of casa eligibility
  • 167 accredited repair shops
  • PHP 3,000,000 maximum total sum insured
The Mercantile Insurance Corporation

Get Free Quote
  • 10 years of casa eligibility
  • 77 accredited repair shops
  • PHP 5,000,000 maximum total sum insured
  • Overnight accommodation - Yes, up to PHP 2,000
  • Towing - Yes, up to PHP 5,000
  • Vehicle removal crane services - Yes, up to PHP 10,000