Top car insurance renewal FAQs in the Philippines

Getting a new car home is exciting for everyone; however, the smiles will disappear if certain things are not done right or omitted altogether. This includes getting the car insured, obtaining a driver’s license, and registering the vehicle for the mandatory OR/CR. Wait, the work doesn’t end here, as all of the essentials mentioned above require renewal, mainly after a year or so. Today, we are here to discuss one such renewal: car insurance renewal.

While we have already covered the ‘Guide to car insurance renewal in the Philippines’, which includes the need, timing (i.e., when to renew), consequences of not renewing, required documents, and the renewal process. Today, we’ll shed light on some of the common concerns and questions Filipinos have about renewing their car insurance.

Read on to find solutions to all your concerns about car insurance renewal in the Philippines.

Car insurance renewal - An introduction

Getting your car insurance renewed is one of those things a car owner can not afford to skip or forget. Often, car owners overlook the renewal due date until it’s too late. However, skipping or delaying the renewal leads to severe consequences like fines, a lack of protection, and a lot of trouble (financial and legal) if an accident occurs.

Overall, car insurance renewal is a must; there’s no chance of skipping or missing it. Let's learn a bit about the process.

FAQs related to the car insurance renewal process

Q1. When & how to renew car insurance?

Ans. Renewal timeline & reminder -
Most of the car insurance policies in the Philippines last for a year (12 months). Policyholders are advised to initiate the renewal process at least a few weeks prior to the policy's expiration date.

As for reminders, companies or agents typically send policyholders renewal reminders to the registered contact number and address. Please ensure that your details are up to date.

Steps to renew -

Review your existing policy and the coverage it offers.
Check for changes in vehicle usage or condition.
Ask your existing insurance provider for renewal quotes and compare them with offers from other companies. Select a suitable provider that offers the best coverage and price.
Submit the required documents.
Make the renewal premium payment.
Get the renewed insurance policy along with the Certificate of Coverage (COC)

Q2. What are the documents required for renewal?

Ans. While each insurance provider has specific document requirements when it comes to renewal, here are a few common must-have documents -

Vehicle OR/CR
Valid government-issued ID
Previous insurance policy

Q3. What are the different types of coverage to consider during policy renewal?

Ans. When you are renewing your car insurance policy, here are a few coverage options to consider. While some are mandatory, others are highly recommended for enhanced protection. So, let’s check out -

Compulsory Third Party Liability (CTPL) Insurance: As the name suggests, you need CTPL insurance, regardless of the circumstances, whether your car is brand-new, used, or at its first or 10th renewal. This particular coverage is required for vehicle registration and covers injury and death of the third party.

Comprehensive Insurance: Although not mandatory, it is highly recommended for its extensive coverage, which includes protection against theft, own damage, fire, collision, vandalism, and more.

Add-on: In addition to comprehensive coverage, several add-on options are available to meet policyholders' specific needs and requirements. Commonly opted add-ons include -

Acts of God (coverage against natural disasters like floods, earthquakes, typhoons, etc.)
Personal accident (protection for the driver and passenger in case of an accident)
Roadside assistance (provides facilities such as towing, repair, and fuel delivery)
Loss of Use (covers the cost of car rental until the insured vehicle is under repair)

Photo by Freepik

FAQs related to the common issues faced during car insurance renewal

Q4. What are some of the common issues experienced by policyholders during renewal?

Ans. Here’s a list of commonly occurring issues/mistakes faced by policyholders at the time of car insurance renewal. Take a note of this and make sure it doesn’t get repeated when it’s your chance to renew the policy.

Policy getting lapsed: Often, policyholders fail to check the renewal date and miss the reminders altogether. This leads to passing of the due date, which leaves them uninsured. Meaning you are now 100% liable in case of an accident, even if you are not at fault.

Hike in the premium: Many times, policyholders complain about a rise in premiums at the time of renewal, which is often due to past claim history, modifications or changes, the age of the vehicle, or updates in coverage.

Incorrect information: At the time of renewal, policyholders often face delays due to errors in the documents. It is therefore recommended to read the policy fine print and details thoroughly.

No comparison: Automatically renewing the policy without first checking and comparing other options may result in higher costs.

Forgetting policy terms: Many times, policyholders are seen renewing their policy without considering essential policy terms, such as deductibles, add-ons, and exclusions.

Not declaring changes or modifications: All information provided to the insurer must be accurate to maintain the validity of the policy. Sometimes, intentionally or unintentionally, policyholders fail to notify the insurer about modifications made to the vehicle. This results in policy cancellation, claim denial, and difficulty in renewal.

FAQs related to tips and tricks for car insurance renewal

Q5. What are some essential renewal tips to avoid any problems?

Ans. A few essential tips include -

Set a reminder, which can be done by setting phone alerts or adding to your calendar.
Be prompt in informing the insurer about vehicle modifications, changes in vehicle usage, and other relevant updates.
Ensure you review the policy thoroughly, checking all the elements for which you are being charged, as well as the accuracy of your personal details.
Never renew automatically just because you're comfortable with the provider. Always compare rates; loyalty won’t save you money.
When modifying a car, ensure that you declare all changes at the time of renewal. Also, carry along the invoice and photos of the mods to the insurer.
When renewing the insurance for a used car, ensure that the vehicle ownership is legally transferred, the OR/CR are updated in your name, and its valuation matches the market price (this is essential during the claim process).

Q6. How to lower the premium on a renewed policy?

Ans. Here are a few tips to reduce your car insurance premium at the time of renewal. Take a look and see if you can follow these suggestions.

Maintain a clean driving record. A clean driving record with no accidents and claims will bring you the advantage of No Claim Bonus (NCB).
Opt for a higher deductible. Doing so will lower your annual premium cost; however, you’ll be paying during an accident, before the claim kicks in.
Install anti-theft devices in your vehicle, such as GPS trackers, an alarm, and an immobiliser. It will enhance the safety quotient and reduce the risk. This, in turn, would convince the insurer to reduce the premium.
Some insurers offer discounts to vehicles with low mileage, so try and limit your car journeys.
Try to bundle your insurance policies, such as car, health, home, and travel, under one insurer for discounts.

Q7. How to compare car insurance renewal plans?

Ans. It is quite easy and highly advisable to compare car insurance renewal plans before committing to another year of coverage. We suggest not to auto-renew with your current provider, but also compare different providers on various parameters to make an informed decision. The table below highlights the parameters and their respective needs.

Premium cost	It is essential to compare premiums from different providers and opt for the one offering the best deal.
Coverage	Check what the provider is offering you in terms of coverage. Opt for the one that protects against floods, theft, etc.
Reputation in terms of claim	Select a provider that offers fast and fair claim service.
Customer reviews	Check customer reviews of the shortlisted insurers to gauge their reliability.
Add-on value	See which provider offers services like roadside assistance, towing, and more. Their presence can be a game-changer in your insurance plan.

FAQs related to common queries (often faced by first-timers) related to car insurance renewal

Q8. Is it possible to renew car insurance online?

Ans. Yes. Most insurance providers in the Philippines offer online policy renewal facilities to their clients. All you need to do is upload your documents, pay a premium, and wait for confirmation.

Q9. How long does it take for an insurance policy renewal?

Ans. A car insurance policy usually gets renewed immediately online and within a few days via traditional means.

Q10. My car insurance policy has expired. Can I still drive?

Ans. No. Driving without a valid car insurance policy is illegal in the Philippines. It can lead to severe consequences, like penalties.

Q11. I want to lower my premium. Is it advisable to do so by reducing insurance coverage?

Ans. Yes, you can lower the premium by minimising the coverage. However, doing so is not advisable and could expose you to danger.

Q12. I only have CTPL insurance. Is it sufficient?

Ans. No, that's because CTPL insurance only covers third-party injuries/death and not your car. Comprehensive insurance is highly recommended due to its extensive coverage options.

Q13. How does a policyholder’s claim history affect renewal?

Ans. If a policyholder has filed claims in the past year, the premium may increase at renewal.

Q14. What should be done if a policyholder misses the renewal date?

Ans. In such a case, the policyholder is advised to contact the insurer immediately. Often, companies offer grace periods to clients to clear required dues.

Q15. Is it possible to renew an insurance policy after modifying my car?

Ans. Yes, however, ensure that you fully disclose all modifications, as the insurer will need to adjust the coverage and premium accordingly.

Bottom line

Renewing your car insurance policy doesn’t have to be a stressful process. With a little planning, the right documents, and clear communication, you can renew your policy easily without any hassle. However, remember to compare policies from different providers, fully declare any changes or modifications, and clear all doubts before signing the renewal deal.

FAQs

Q1. Is the vehicle inspected again at the time of policy renewal?
Ans. Often, in the case of old, high-value, and modified cars.

Q2. Are modified cars difficult to insure?
Ans. Not necessary, given that all the mods are declared along with the invoice and photos.

Q3. What is a No Claim Bonus?
Ans. No Claim Bonus is a discount the insurance provider offers to the policyholder for being claim-free during the policy term.

Q4. Is it possible to renew policy coverage during renewal?
Ans. Yes. It is the best time to add or remove coverage from your policy.

Q5. Is it better to renew the policy with the same insurer?
Ans. It depends on your experience with the insurance provider. If you are satisfied with the premium cost, coverage, claim approval process, and customer service, then you can stick with the same provider.