8 Must-ask questions before buying car insurance

Buying a car is one thing, but getting car insurance is a totally different struggle in itself, especially with the wide range of options at our disposal. However, the truth is having so many choices only makes the decision-making process harder. So, what should an applicant do to get the most appropriate car insurance policy in the Philippines? The answer is, to ask questions.

Yes, by knowing what questions to ask, you can make the best decision for your vehicle, your lifestyle, and your budget. What questions? You ask. Well, we have created a list of eight must-ask questions to ask an insurance provider before buying a policy for your car in the Philippines. Thus ensuring that you make an informed choice and drive with peace of mind.

So, without any delay, let’s jump right in -

Q1. What does the basic compulsory insurance cover?

In the Philippines, there is one non-negotiable car insurance, i.e., every Filipino with a car must have it, called the Compulsory Third Party Liability (CTPL). It's a legal requirement, but it's essential to know what it actually covers.

CTPL is designed to protect the driver from the financial burden of injury to a third party while driving. It covers the following -

• Bodily injuries
• Medical expenses
• Funeral costs

CTLP has some limitations. It does not cover damage to the policyholder’s car and any injury caused by the accident.

Keynote: Do not assume that with the CTPL you are fully protected. It is important to know its limits and understand that additional coverage is essential to fully protect yourself and your car.

Q2. What optional car insurance coverage is available in the Philippines?

Apart from the mandatory CTPL, there are several optional car insurance coverages available from the insurance providers. These options will offer better protection to you and your car. Some of the most common coverages are -

• Comprehensive coverage: This insurance covers third-party liabilities along with damages to your car due to accidents, natural calamities, theft, and vandalism.
• Acts of Nature coverage: As the name suggests, this particular insurance coverage is specifically for damages caused by natural calamities like earthquakes, floods, and typhoons. Also, given the frequent occurrence of such events in the Philippines, this coverage is worth considering.
• Personal Accident coverage: This particular insurance coverage will cover medical expenses for you and your passengers, incurred due to an accident.

Keynote: Always ask your insurance provider about optional insurance coverage. Assess which one of these options suits your requirements best.

Also Read: Why every Filipino driver needs car insurance

Q3. Are there some exclusions in the insurance policy?

It is important to understand what your insurance policy covers and what it doesn’t. Policy exclusions are specific instances or situations that the insurance company will not pay for in case of an accident or damage. Some common policy exclusions include -

• Damage caused when driving under the influence of alcohol or drugs
• Damage caused when the car is used for illegal activities
• Damage caused when driving in restricted or unauthorized areas
• Normal wear or tear to the car

Keynote: Do remember to ask your insurance provider for a clear list of policy exclusions. As by knowing what is excluded, unpleasant surprises can be avoided when filing a claim.

Q4. How is the premium calculated?

It is important to clearly understand how insurance premium is calculated, however, it varies greatly depending on several factors including -

• Car make and model: High-end and luxury vehicles typically cost more to insure because repairs or replacements are more expensive.
• Driver’s age and experience: Younger or less experienced drivers are considered high-risk, so they may face higher premiums.
• Location: If you live in an area prone to accidents, theft, or natural disasters, your premium may be higher.
• Claim history: If you’ve made several claims in the past, insurers may view you as a higher risk and charge more.

Keynote: Make sure to ask your insurance provider how the above-mentioned factors affect the premium. Also, ask your agent if there is a way to reduce the premium, a few common techniques include bundling the policies and maintaining a clean driving record.

Q5. Are there any ongoing discounts or promotions available?

Who doesn’t love good discounts? If you do too, then it is recommended to ask insurance providers if there is an ongoing promotion or special deals. Some potential discounts you can ask for include -

• No-claim discounts: If you haven’t filed a claim in several years, you may be eligible for a lower premium.
• Loyalty discounts: Long-time customers or those who have multiple policies with the same provider (like home or health insurance) might be able to get a discount.
• Safe driver discounts: If you have a clean driving record, some insurers will reward you with lower rates.

Keynote: Just ask. It doesn’t hurt to ask, and even small savings can add up over time.

Q6. How does the claim process work here?

It is important to ask your car insurance provider how claims are handled. Ask about the steps involved in filing a claim, the required documentation, and the expected timeline for receiving your payout.

Enquire if the insurance company offers online claim filing or 24/7 hotline service. Also, clarify the process of getting your car repaired, the availability of accredited repair shops, and the duration of the claim process getting through.

Keynote: The details pertaining to the insurance claim process will make a huge difference in your overall experience, especially in times of stress when you need you back in good shape.

Also Read: Is collision insurance right for you? Here’s what you need to know

Q7. What is the reputation of the insurance provider?

The reputation of a car insurance provider says a lot about its service quality. Therefore, before signing up for a policy it is essential for you to inquire about the insurer’s track record. Here are a few tips to evaluate their reputation -

• Customer reviews: Check out reviews from other policyholders and see how they rate the company’s service, especially in terms of claims handling.
• Financial strength: An insurance company’s financial stability is crucial, it ensures they can pay out claims even during large-scale events.
• Accreditation: Make sure that the insurance provider is accredited by the Insurance Commission of the Philippines, thus ensuring they comply with local regulations.

Keynote: Always opt for a trustworthy provider, as it will ensure your peace of mind and make sure the entire process from buying the policy to filing the claim is smooth.

Q8. Are there any hidden charges?

Remember, transparency is the key when it comes to car insurance. Sometimes, a few fees aren’t immediately obvious, therefore, it is important to ask upfront for any hidden charges. Some of the common hidden charges you can come across include -

• Administrative fees: For processing your policy or amendments.
• Early cancellation fees: In case you decide to cancel your policy before it expires.
• Deductibles: The amount you’ll need to pay out of pocket before your insurance kicks in after a claim.

Keynote: Just make sure the insurance provider has given you a breakdown of all associated fees. This will help you exactly know what you are paying for and prevent any unexpected expenses.

Bottom line

Buying car insurance in the Philippines doesn't have to be confusing, given that you know the right questions to ask. The eight questions we have listed above will help you make an informed decision. How? By allowing you to understand several things from the coverage you need to find a reputable insurer and avoid any hidden charges. Remember with the right policy in hand, you’ll not only be complying with the legal requirements but also have a protection cover for yourself, your vehicle, and others on the road.

Also Read: Passenger safety: What does your car insurance cover in an accident?