7 Things You Need to Know About Car Insurance

MANILA, Philippines - When you purchase a car, chances are you’ll be required to get the necessary car insurance too. Most of the time, you sign up for whatever policy is on offer without digging into the details. Why? Because it’s a dull task and you’re much more excited about hopping into your new car. However, the nitty-gritty of your insurance is just as valuable as the car itself.

Know the best CAR INSURANCE policy | Credit: vehicles.com

Try to read and know everything you can before signing up. If your budget is the main issue, you can always find the best and cheapest car insurance in the Philippines if you find the time to do research. Before you sign the dotted line, think about these key considerations:

1. What type of coverage?

Find out exactly what coverage you need. Usually, people opt to sign up for the most basic liability coverage. It covers the costs of the injured or deceased party for an accident you are responsible for. This also covers legal fees, along with repair costs for any damage done to another affected vehicle. But there is also comprehensive car insurance available that cover collision insurance, personal injury, or personal accident insurance, among others. Do more research before you commit to anything.

2. How much of a risk are you?

Your insurance rate would largely depend on how much of a risk you are for the insuring bank or company. The higher the risk, the higher the chances of you making a claim—the higher your insurance rate will be. Age, gender, health, driving habits, and criminal records, as well as credit history and the area you live in are all taken into consideration in risk assessment. Teens and the elderly are more likely to get into vehicular accidents, as well as people who have a history of traffic violations. These people tend to have higher insurance rates.

3. How are payments made?

There are multiple payment schemes you can avail of on your insurance policy. You may opt to pay for insurance on a monthly or yearly basis, through cash or credit. Choose a scheme that allows you to manage your budget better so it’s easier for you to fulfill all your financial obligations without feeling much of a burden.

4. What type of vehicle?

The nicer your car is, the costlier its insurance policy will be. Makes sense, right? If you have the latest sports car, the cost of a broken part is definitely much more expensive—usually twice as much. So, make it a point to find out your vehicle’s worth as it pertains to insurance.

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5. Replacement Parts

Sometimes, in the event of an accident, the damage is so extensive that you need to have something replaced. However, some insurance companies won’t shell out for original manufacturer parts, opting for cheaper alternatives. Take note of that early on, not only to help you decide if their personal accident insurance policy is best for you, but to save yourself from unnecessary stress and disappointment when you get in trouble.

6. Service Track Record

A lot of insurance companies offer a 24-hour claims service. This is helpful since you can never tell when you’ll be involved in an accident. It’s less hassle after a big hassle. Imagine having to wait for the insurer’s office hours after an accident during the wee hours of the morning.

7. Discounts

Always try to negotiate for better insurance premiums. Many people neglect asking about discounts, particularly because a lot of them aren’t aware that insurers do offer discounts for different reasons. Some insurers offer credits for vehicles that have safety features like airbags, or for people who are considered to be low-risk. Whatever the case, remember to always inquire about any discounts you might be eligible for.

Asking your agent or financial company the right questions will lead you to the best deal for your budget and needs.

This article is shared by MoneyMax.ph, the Philippines’ leading financial comparison site where you can save money by comparing financial and car insurance products and services – fast, comprehensive, and free. MoneyMax aims to give the power of smart purchase decisions back to Filipino consumers by providing everything they need to become financially savvy.

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