8 Helpful Tips to Get a Cheaper Comprehensive Car Insurance
Published on: February 17, 2020 . Last updated: August 6, 2020 Category:
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, comprehensive car insurance, maintenance, and other expenses.
To cut costs, most Filipinos choose not to get comprehensive car insurance and just avail of the government-mandated Compulsory Third Party Liability or CTPL coverage. This will save car owners an average of PHP 20,000 from their annual car-related expenses.
But is forgoing comprehensive car insurance really worth it? Not getting your car insured is risky and will cost you more in the long run. Road accidents can happen, your vehicle can get stolen, and flash floods can swallow your car whole.
Without a comprehensive car policy, nothing can protect you from the financial loss and other setbacks these unfortunate events can bring about. Instead of saving money, you will end up spending more money. That’s never good.
But who says you can’t insure your car and save money at the same time? You probably didn’t know, but there are some tips you can use to lower your comprehensive car insurance price. To help you get started, here are eight ways to save money on your car insurance and get the most out of your policy.
8 Helpful Tips to Get a Cheaper Comprehensive Car Insurance
1. Buy a Car That is Cheaper to Insure
Your car’s make and model will affect your comprehensive car insurance price. The more expensive the vehicle, the higher its insurance cost. Luxury and high-performance vehicles often have advanced and complex parts that are not available locally.
Repair shops may need to import these parts abroad, making luxury cars more expensive to insure. 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 because their parts are readily available in the Philippines. If you want to save significantly on your comprehensive insurance, opt for a more economical vehicle. Regular sedans, hatchbacks, and small SUVs are ideal choices for money-savvy car buyers.
2. Compare Car Insurance Quotes
Saving on your comprehensive car insurance cost begins with comparing quotes and finding the best deal from different insurance providers in the Philippines. Since car insurance rates vary from one insurance company to another, it is best to get as many car insurance quotes as possible.
Don’t be afraid to shop around and compare your options meticulously. This will help you determine which provider is the easiest to deal with, which one can give you better coverage, or which one can give you the most bang for your buck.
When you compare car insurance quotes, do not just look at the rates. An insurance policy with the lowest premium is not necessarily the best option. You also have to check the coverage, exclusions, benefits, and the reputation of each insurance provider.
Calling up each provider to ask for car insurance quotes is good, but it can eat up much of your time. Make the process easier by taking advantage of the free comparison tool here at Moneymax to help you compare car insurance quotes in just a few minutes.
3. Don’t Be Shy to Ask For Discounts
You’ll never know if you don’t ask. More often than not, insurance companies don’t let their discounts known unless you inquire about them, so don’t be afraid to ask!
Some providers allow comprehensive car 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 are renewing your car insurance and you barely used it in the previous year, don’t hesitate to ask for a lower premium.
Is your car equipped with safety features such as anti-theft devices, airbags, anti-lock brakes, and car alarm? Your insurance provider might 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 to buy insurance for your car and your house from an insurance provider, ask them if they can give you a discount.
4. Remove Any Coverage You Don’t Need
One of the advantages of comprehensive car insurance is that you can customize your coverage. Go over your policy and check the coverage that you have. You may not need the add-on benefits so remove them to lower your insurance costs.
For example, if you’re already a member of an auto club in the Philippines where you enjoy privileges such as roadside assistance, it makes sense to eliminate this coverage from your car insurance. If you already have a family lawyer, you might as well remove the legal assistance coverage to save more money.
Do you have a second car at home? Another way to save money on car insurance is to forgo the car rental coverage. You won’t need it anyway because you can drive the other car when your insured car is at the repair shop.
You may also want to remove the personal accident coverage from your car insurance if you already have an existing accident insurance provided by your employer. But of course, don’t remove an essential coverage just to save a few thousands. If you really need any of the add-on benefits, keep it in your policy.
5. Raise Your Car Insurance Deductible
Did you know that increasing your deductibles can lower the price of your comprehensive car insurance premium? A deductible is the amount of money you need to pay in the event of an accident before your insurance company pays the rest of the expenses.
In the Philippines, the standard amount of deductibles are set 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.
You can opt to raise your standard deductible to earn a discount on your car insurance premium, but be careful not to raise it too much. Sure, you save big on your premium, but you will definitely pay more in small-scale accidents courtesy of your high deductible.
And if you do get involved in a devastating accident, your insurance company will pay lesser reimbursements. So if you really want to raise your deductible, find the right amount that can save you money and still give you good coverage at the same time.
6. Pay Your Premium in Full
You can further cut down on your car insurance costs if you pay your premiums in full or in lump sums every year compared to paying monthly installments. Insurance companies are inclined to give you discounts when you pay full annual premiums because it saves them a lot of time in processing your payments.
Paying in full also endears you to your insurer and they will eventually treat you as a priority policyholder. Processing your comprehensive car insurance claim will be a breeze once you’ve built a rapport with your insurer.
On the other hand, some insurance companies charge additional fees to policyholders who choose to make monthly premium payments. Add up all those extra fees and you get an expensive insurance policy when you could’ve saved more by paying the premium all at once.
Besides, making a one-time big-time payment allows you to focus your savings on important matters like education, a new house, or a grand vacation for your family.
7. Maintain a Good Driving Record
Adapting a more responsible and defensive way of driving isn’t just for safety; it can also help you get a cheaper comprehensive car insurance. After all, responsible driving is never the cause of a road accident, bad driving habits are.
If you have filed at least three claims within a year, there’s a chance that your insurer will increase your premium and declare you a high-risk driver. That’s not a good thing since that’s their way of saying they don’t trust in your capabilities as a driver. If that’s your current dilemma, start improving your driving skills.
It’s fairly easy to do anyway. Just avoid bad driving practices like speeding, tailgating, and using your mobile phone while driving. Not only will it reduce the risk of causing an accident, it will also lessen the chance of you frequently filing an insurance claim.
Keep it up and you might even qualify for a discount the next time you renew your policy. Aside from all the cost-cutting, you will also learn to prioritize safety when you’re on the road. And isn’t that more important than saving a couple of bucks?
8. Avoid Car Insurance 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 because of various reasons, such as your policy getting cancelled or you making late payments.
A gap is also likely to happen when you took a long time switching to a new car insurance company after you ended your policy to your former insurer. It’s always important to be consistent in insuring your car.
Having these gaps and lapses in your history will greatly increase your premium the next time you apply for a policy. Make sure to 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.
Find the Best Comprehensive Car Insurance with Moneymax
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From choosing the best insurance provider to filing your insurance claim, Moneymax will make sure you’re on the right track. And the best part? Our services are free! Get started by getting a free quote below.