Car insurance sorted? Now follow these essential steps

Congratulations! You did it. You have a car insurance policy. However, we hope you never get to use it, as it would mean your car’s involvement in an accident, theft, or damage. It is a lot like buying a fire extinguisher, wherein you pray it never comes in use, but it gives you peace of mind that it’s there.

However, if you are still on the other side of the car insurance tunnel, you are indecisive about getting car insurance. Here are a few reasons why car insurance is a must in the Philippines.

Why insure your car?

Reason No.1 No need to break into your savings

With car insurance by your side, you’ll never need to fetch money out of your savings to pay for the damage to your car due to an accident or natural calamity. All you need to do is contact your insurer and the finances will be taken care of.

Reason No.2 Less headache & quicker

When you are involved in an accident, what follows after it is a bit tedious and time-consuming process. There is a lot to be taken care of including towing, repair, replacement, and more. However, if your car is insured, it is all taken care of. Plus there is the added benefit of quick repair, as insurance companies have a strong network of service centers.

Reason No.3 Best repair and service for your car

Insurance companies in the Philippines only partner with service centers or repair shops that are well-reputed and have good quality service. So, when your car goes to one such workshop, you can expect top-notch service quality and repair work.

Reason No.4 Protection against natural calamities

Typhoons are not alien to the Philippines and we are well aware of the damages it causes. Cars are heavily impacted by its effects and are often left damaged. Here car owners with insurance with Acts of God coverage will enjoy financial protection from all the damages the typhoon caused to the car.

Reason No.5 Several add-on services on offer

Apart from taking the insurer's financial burden (during a car accident, damage, or theft), insurance providers offer several add-on services from which you can really benefit. The list includes roadside assistance services like towing, fuel delivery, and tire replacement. Furthermore, in cases where a car can’t be repaired immediately, the insurer may pay for your travel costs and accommodation charges.

Reason 6. Enjoy free legal services

Some insurers in the Philippines also offer the insured free legal assistance which comes in handy while navigating tricky situations.

Reason 7. Car insurance complements existing insurance policy

Be it life insurance with accident cover or personal accident insurance, all complement car insurance policies with accident cover. In cases where a car insurance policy is comprehensive enough, you’ll not be required to use personal car accident insurance to cover the medical expenses.

Reason 8. Enjoy the peace of mind

A car owner’s life without car insurance is very typical. Every time such an individual will hit the road, they will be stressed. There are many things to be taken care of including money for car repair and medical expenses, legal battles, etc. However, with insurance by your side, all these matters will be taken care of and you can relax.

Hopefully, now you are convinced to buy a car insurance policy in the Philippines. Find out the top car insurance providers in the country, here.

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

To-do list after getting car insurance in the Philippines

Finally, after all that research and hard work, you have secured your car insurance policy. But what’s next? Don’t worry there is not much that’s left to be done but just a few things need to be sorted out to make sure you can use the policy when needed.

So, without any delay let’s learn the crucial steps to be taken after buying car insurance.

Step 1. Keep it safe

Keeping your policy safe but easily accessible is one of the first things to do as a policyholder. Most insurance companies in the Philippines provide the policyholder with either a physical or digital copy, sometimes even both. While the physical copy should be kept safely with other important documents, the digital copy must be saved in the cloud, hard drive, or your smartphone. Again, just make sure to keep it in a way that is accessible right away.

Advice: Get two or three photocopies of the policy, and place one in the car’s glove box; making it accessible during an emergency.

Step 2. Understand the course of action

No one knows when the bad luck will strike and you’ll need your car insurance policy. So we’d recommend having the contact details, like the phone number and email address of the insurer agent, service department, or claim team with you, here’s why -

• Inform you about your course of action to avail of insurance.
• Answer questions about the insurance policy.
• Help avail roadside assistance services like towing, refueling, overnight accommodation, and tire change.

Advice: You can get the contact details via the insurer’s website or through your agent.

Step 3. Make timely payments

Once you have your car insured, you must make timely monthly premium payments. It is an obligation that must be fulfilled without fail, as only then you will be able to enjoy the perks of having insurance coverage. Here’s what happens if you stop making payments at all -

• The policy will get canceled for non-payment of premium under The Insurance Code (RA 10607).
• You will lose your car insurance coverage, i.e., you are no longer protected against the financial burden of car damage or loss.
• The car might get repossessed, if it’s financed via a car loan and you stop making premium payments.
• Your credit score will drop and a poor score will make it difficult for you to get a loan, or credit card, buy a home or another car.
• You might end up paying a high premium on your next policy.

Don’t be afraid, as insurers usually offer a grace period to the applicant when it comes to skipping payments. Just make sure to clear all dues within this extended time frame.

Advice: We’d suggest you automate your premium payment and free yourself from the risk of missing out.

Step 4 Be prepared for the worst

While we always try our best to drive safely and prevent accidents on the road, you never know when things go out of hand and a mishap will take place. Therefore, it is suggested to be well-prepared with an action plan. Here are a few things to keep in mind when an accident or uncertain event occurs (involving your car) -

• Keep a first-aid kit in your car ready.
• Do keep warning triangles/cones and a flashlight in your boot, both will come in handy in case of a nighttime breakdown.
• In case of an accident, do remember to check everyone's well-being and make sure to visit the hospital for further examination and check for internal injuries.

Step 5 Know the claim application process

In case an accident takes place, involving you and your car, make sure to claim your insurance policy. Here are a few dos and don’ts to keep in mind -

Dos	Don’ts
Inform your insurance provider: No matter the level of accident severity, call the insurer right away. They’ll inform you about the claim process and the documents required.	Don’t withhold any information: It is very essential to tell your insurance provider each and every detail you remember. Never lie, if caught it will be regarded as fraud.
File a police report: We know filling out a police report in the Philippines is a bit tedious, but it will strengthen your claim.	Never speculate: It is not a good idea to make up things you are sure about. Just stick to what you know for sure and always be objective.
Take photos & videos of the accident: Document each and everything, be it damaged vehicles, properties, skid marks, and traffic signals; all will be required while filing the claim.	Never settle right away: If you deal directly with the other driver right away, chances are you will not be compensated fairly.
Keep a check of the time: Do you know if your insurance policy has a time parameter? So, if you report the incident after that period, your claim may not be processed.	Don’t settle without talking to your lawyer: Having a lawyer around will make sure that what you are getting is just fair.
Know the claim channels: Your insurance provider is most likely to have various channels for filing claims like via telephone or website. Choose the more convenient channel.	Avoid entering into agreements with dubious personalities: Never fall for third-party compensation promises, most of the time it is a scam and if you get something, it will surely be an unfair amount.
Take regular updates: Insurance claim processing might take time, do not hesitate to ask the insurer for updates.	Don’t forget the bills and receipts: Never keep the car repair receipts and medical bills loosely, as they are essential to getting fair compensation.
Take advantage of free legal assistance: Most insurers offer free legal assistance that can be very helpful in complicated cases.
File dispute, if the claim is rejected: Don’t be disheartened, if your claim gets rejected. You can request a review to see what went wrong.

Step 6 Keep your policy updated

It is very essential to keep your policy updated as per the change in your lifestyle and financial health. This will make sure you and your car are adequately protected and covered. Here are a few examples -

• Update your policy with Acts of Nature coverage, if you have moved to an area that is prone to natural disasters.
• Consider removing the theft coverage, if you have relocated to a plush, safe neighborhood.
• If you make frequent trips to rural areas, roadside assistance coverage becomes essential.
• Update your policy as per significant life changes like marriage, new family member addition, or work promotion.

Step 7 Consider getting a complementary insurance policy

Yes, even after third-party and comprehensive car insurance, you should consider getting a complementary policy. However, keep in mind that it would add to your monthly expenses and disturb your budget. A few examples of complementary policies include - a personal accident policy and collectibles & classic coverage policy for vintage cars.

Step 8. If necessary, switch to a new insurance provider

We know it takes a lot to secure car insurance and going through the same process might sound like a lot of work. However, it is not wise to stick to an insurer that is not offering adequate coverage and customer service. It is also better to move on if your current insurer is more expensive compared to others.

Bottom line

Car insurance is one of the necessities for a car owner. In addition to numerous benefits, it offers the insurer one of the most precious things, i.e., peace of mind. However, your struggle doesn’t end here and there are a few matters that need to be taken care of after getting car insurance, for instance, keeping the documents secure but accessible, making regular premium payments, knowing the claim process, updating the policy as per requirement, and much more.

Also Read: 8 Must-ask questions before buying car insurance