Every car owner in the Philippines must get their car insured; there is no way this essential can be skipped. You see, car insurance is not only a smart financial move but also a legal requirement without which you can end up in a lot of trouble.
Everyone is equal in the eyes of the law, whether they are new, first-time, or long-time car owners. Additionally, it is always a good idea to protect your four-wheeled investment from dangers such as accidents, collisions, natural disasters, theft, fire, and other risks. However, not all policies are equal, and therefore, to enjoy the required protection for your car and avoid costly surprises later, it becomes essential to ask the right questions before finalising the deal.
However, it is common for car insurance applicants to fall short of questions, as most lack essential knowledge when it comes to insurance. As a solution, we have created a guide of top questions to ask before buying a car insurance policy in the Philippines. So, either memorise or take these questions along when finalising the deal to enjoy the best deal and peace of mind.
So, without any delay, let’s check out the top questions you should ask your insurer.
Q1. What are the different types of car insurance policies available?
Why ask: It is essential for you to understand the types of car insurance policies available to get the right coverage for your vehicle.
Most car insurers offer the following coverages: Compulsory Third Party Liability (CTPL), Comprehensive Car Insurance, Acts of God, and other optional add-ons.
CTPL insurance is mandatory for LTO-registered vehicles in the Philippines. As for coverage, it protects third-party injury or death in the event of an accident or collision involving the insured vehicle. Now, it does not cover damage to the insured car, its driver and passengers.
Comprehensive insurance fills the protection gap of CTPL insurance. It offers comprehensive protection to the insured vehicle against theft, vandalism, fire, accidents, collisions, and other related risks. It also covers third-party property damage and the driver and 'passengers' medical and hospitalisation bills.
Acts of God coverage is a bit tricky; some insurers include it under comprehensive insurance, while others offer it separately as an add-on. Whatever the case may be, it is essential coverage for Filipinos due to the country’s high vulnerability to natural disasters such as floods, typhoons, earthquakes, and other natural calamities.
Other add-ons, such as roadside assistance, personal accident coverage, and auto passenger liability, can be included in the insurance plan as per your requirements and budget (as they add to the premium cost).
Q2. Is the insurance company accredited by the Insurance Commission (IC)?
Why ask: Before you trust a company with your beloved car’s protection, it is essential to ensure its legitimacy.
Insurance Commission (IC) accreditation is essential, as only insurance companies with the IC’s approval stamp are authorised to issue valid insurance policies in the Philippines. This guarantees you the following: financial security, regulatory oversight, and legal recourse in the event of a dispute between you and the insurer.
How do I verify an insurer's accreditation? Just visit the Insurance Commission website for the list of all the accredited providers or check the insurer’s IC certificate.
Q3. What does the car insurance policy cover and not cover?
Why ask: It is an essential question, as you should know what damages you and your car will get from the insurer.
A standard car insurance policy typically includes third-party liability (injury or death), theft, fire, Acts of God, and vandalism.
As for exclusions, most policies do not cover claims concerning mechanical breakdown due to wear and tear, damage resulting from driving under the influence, or accidents involving unauthorised drivers or the use of the vehicle.
Q4. How is the premium calculated, and are there any hidden charges?
Why ask: Car insurance premiums vary widely from insurer to insurer. Therefore, it is advised to compare multiple options on several factors, including cost.
Typically, car insurance premiums are calculated by the provider after thoroughly considering the following factors: the car’s make, model, model year, age, market value, driver’s age and usage pattern, claim and driving history, location, coverage, and deductibles.
Note that add-ons like roadside assistance and deductibles increase the premium; on the other hand, high deductibles result in lower premiums. Request details on participation fees and any additional hidden costs.
Photo from FreepikQ5. What is the claim process?
Why ask: It is in your favour to understand the claim process beforehand and know about the documentation and other requirements. All this will reduce the stress during emergencies.
Most insurance providers follow the same guidelines when it comes to the claim filing process. Here is the step-by-step guide -
- First, notify the insurer as soon as possible after the accident.
- Gather essential documents and the police report (if required).
- Take photos of the damage.
- Submit duly accomplished claim form along with documents.
Usually, the list of required documents includes a police report, vehicle OR/CR, and repair estimate.
Q6. What is the reputation of the car insurance provider?
Why ask: This question is essential because insurers will be with you during such stressful times.
You should inquire about insurers and reinsurers in the market regarding the quality of customer service, the speed of the claim process, and overall service quality. You can do so by checking customer reviews and online ratings on social media, car forums, Google and Facebook reviews.
Note that timely and fair claim handling is what separates a good insurer from the rest.
Q7. Does the policy include value-added services?
Why ask? A few extra perks can only make your policy and life better, so don't hesitate to ask.
Some insurers offer valuable services, such as 24/7 roadside assistance, which come in handy during emergencies like lockouts, dead batteries, and flat tyres. Other standard perks include free towing, medical emergency support, and minor on-site repairs.
Buying car insurance - Red flags to watch out for
When buying car insurance in the Philippines, be cautious of the following.
- Inappropriate terms and conditions
- Absence of policy documents and official receipt
- Extremely low premium that is too good to be true
- Policy exclusions are avoided, not explained by the agent
Photo from FreepikTop car insurance providers
Here are a few IC-accredited insurance providers with good reputations and reviews -
- Malayan Insurance
- AXA Philippines
- MAPFRE Insular
- FPG Insurance
- Prudential Guarantee
Tips for Filipino car insurance buyers
- Do not choose the insurance provider with the cheapest premium; instead, look for one with good customer support and optimal coverage.
- If you want a discount, consider bundling your policies, such as home, car, and health.
- Ask for an insurance cost breakdown (fees and premiums).
- Ensure that you review the policy annually as insurance needs evolve.
Bottom line
Buying car insurance doesn’t have to be a complicated process; instead, it could be smooth and seamless. Wondering how? Just ask the right questions, and you’ll get yourself the policy of your dreams. However, the issue is that the majority of applicants do not know what to ask, and that’s where we come in. This guide contains seven essential questions concerning coverage options, the claim process, premium calculation, and more, all empowering you to choose the best protection.
FAQs
Q1. Can I just get CTPL insurance for my car?
Ans. No. CTPL insurance only covers third-party injury and death; it doesn’t protect the insured car or the policyholder.
Q2. Is comprehensive insurance costly?
Ans. It depends on factors such as coverage, car model, driver’s age, claim history, and driving record, among others. It usually ranges from PHP 8,000 to PHP 10,000.
Q3. If my car is damaged, can I choose the repair shop that I want to use?
Ans. It depends on the insurance provider; while some allow you to choose a repair shop, others require you to visit only accredited shops.
Q4. If my car gets damaged in floods, will my policy cover the damages?
Ans. Only if your car insurance policy includes ‘Acts of God’ coverage.
Q5. What will happen if I miss a premium payment?
Ans. This could result in a lapse in the policy, leading to claims being denied.
Q6. Can I cancel the policy anytime?
Ans. Yes, a car insurance policy can be cancelled at any time; however, refunds are subject to the insurer’s terms.
Q7. What is a deductible?
Ans. It is the amount of money you pay from your pocket before the settlement money kicks in.
Q8. Does car insurance cover rental services used during repair?
Ans. It depends on your policy and its terms and conditions. Usually, such benefits are covered by add-on coverages.
Q9. My car is not used often; should I get insurance?
Ans. Yes. While CTPL is mandatory, obtaining comprehensive insurance is recommended, as risks such as theft and natural disasters can still occur even when the car is not in use.
Also Read: Top 10 car safety tips during typhoon season in the Philippines
