Steps to Getting a Cheap Comprehensive Car Insurance

Reading time: 7 minutes

December 14, 2018



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.