Choosing the right car insurance policy in the Philippines

Owning a car entails a range of responsibilities and obligations, all crucial for maintaining safety, financial stability, and legal adherence. One of these responsibilities is securing the appropriate car insurance to protect yourself financially in case of accidents, theft, or natural disasters.

There are several car insurance policies available in the Philippines, each offering different levels of coverage and benefits. But as a layman, you might wonder, “Which insurance policy is best for me? What does each policy cover, and how do they differ? What factors do I need to consider? Well, these are some of the essential questions one needs to address when selecting the right insurance policy.

In this comprehensive guide, we'll walk you through the process of selecting the right car insurance policy in the Philippines, ensuring that you make an informed decision that suits your needs and budget.

Understanding car insurance in the Philippines

Before getting into the specifics of selecting a car insurance policy, it's important to understand the meaning of insurance policy and the different types of insurance policies available in the Philippines.

A car insurance policy is a legal agreement between you (the vehicle owner) and an insurance provider that offers financial protection against various risks associated with owning a vehicle. In exchange for receiving the agreed-upon premium, the insurance provider covers the costs of repairs, medical expenses, legal liabilities, and other financial losses outlined in the terms and conditions of the policy. 

Types of car insurance policies in the Philippines

The various types of auto car insurance policies available in the Philippines are - 

Please note that certain points listed above may be bundled or covered in one insurance policy. So, it’s advisable to understand all the terms and conditions of the policy before choosing.

Documents required for car insurance in the Philippines

The following documents are required for securing a car insurance policy in the Philippines -

• Driving license
• Original Receipt (OR) and Certificate of Registration (CR) of the vehicle
• Deed of sale in case of the used car
• Previous vehicle insurance policy, if any
• Any valid identity proof, other than the driving license
• Photos of the vehicle 

Factors to consider when choosing a car insurance policy

When selecting a car insurance policy, several factors come into play to ensure that you get the best as per your requirements and budget.

Coverage: The very first thing that you need to consider is the specific coverage offered by each policy. These include - collision coverage, personal injury protection, and property damage liability. You need to assess your needs and risk appetite before determining the appropriate level of coverage for your vehicle. 

Premium: The premium of the car insurance policies depends on various factors, including - 

• Make and model year of the vehicle
• Your age and driving record
• Location where you primarily drive
• Condition of the vehicle
• Number of accessories installed in the vehicle
• Safety features of the vehicle
• Market value of the vehicle

Deductibles and Excess: While selecting a car insurance policy, you must understand the concept of deductibles and excess. It refers to the amount of money that you agreed to pay out of your pocket before your insurance coverage kicks in. 

Add-on options: You can also check out add-on options and riders such as roadside assistance, rental car coverage, and zero depreciation coverage, offered by different insurance providers. Available at a slightly extra cost, these provide extra protection and convenience.

Premium payment options: Consider the different premium payment options offered by the insurance company, such as annual, monthly, or quarterly. Some insurers offer discounts on paying annual premiums. You can pay the premium with the help of different payment channels, including debit/credit cards, checks, digital wallets, online banking, mobile banking, and over-the-counter.

Claim process: At the time of selecting the policy, get yourself familiarized with the claims process such as how to file a claim, what documents will be required at the time of filing a claim, and what will be the timeline for claim processing.

Insurance provider: Before selecting the insurance policy, you must evaluate the reputation, financial stability, and customer service of the insurance provider. Choose the one that has a straightforward and efficient claim process.

Policy terms and conditions: You must thoroughly review the terms and conditions of the policy before signing. Pay attention to details such as schedule, coverage, exclusions, claims procedure, and “schedule of fees” (including cancellation fees or change of address). 

Comparing car insurance companies in the Philippines

Below is a list of top car insurance companies in the Philippines and their features. You can compare options and get a free quote from Carmudi PH.

FPG Insurance:

As a member of the renowned Zuellig Group of companies, FPG Insurance, has been serving the Philippine insurance market since 1958. It is one of the leading insurance providers in the country specializing in insurance and risk management solutions.

OONA:

OONA, formerly known as MAPFRE, has been operating in the country for almost 8- years and has established itself among the top non-life insurance providers in the Philippines. It offers a wide range of packages for individual customers as well as businesses.

Mercantile Insurance:

Mercantile Insurance has also been in the insurance business for over 60 years. Over the years, it has built a reputation for providing reliable insurance products and services.

Bethel Gen:

The local general insurance company, Bethel Gen (Bethel General Insurance and Surety Corporation) has been meeting the diverse insurance needs of Filipinos since 1961. It is committed to excellence and integrity and has impressive underwriting and claims management practices. 

FGen Insurance:

FGen Insurance, also known as Fortune General Insurance Corporation, has been in operation since 1955. After being acquired by the ALC Group of Companies, it has been rebranded to offer insurance coverage for auto, travel, real estate, and maritime shipments.

The key insurance plans and insurance coverage of these companies are as follows -

Tips for making the right decision

When choosing a car insurance policy in the Philippines, consider the following tips to make the right decision:

• Evaluate your budget, the value of your car, and your driving habits to determine the level of coverage you require
• Familiarize yourself with the terms of car insurance for a better understanding of all terms and conditions
• Obtain car insurance quotes from different providers and compare them to find the one that offers you the best value for your money
• Inquire about discounts offered by insurance companies like no-claims bonuses, discounts for safety features installed in your vehicle, and multi-policy discounts
• Choose a payment plan wisely; whether monthly, quarterly, or annually; it should fit your budget and financial preferences
• Choose the insurance provider with a solid financial track record, 24x7 customer service, and efficient claims process
• Thoroughly understand the claims process of the insurance provider, including the claim-filing process, the timeline for claims processing, and documentation requirements
• Ask for recommendations from relatives, friends, or colleagues regarding their experiences with different insurance policies and providers
• Read the terms and conditions thoroughly to avoid any confusion or financial loss during the claim
• Review your auto car insurance policy regularly to ensure that it still meets your requirements; if not, make the required adjustments

Summing up

Choosing the right car insurance is a crucial step in protecting yourself against unforeseen financial burdens. Navigate this process by understanding your unique needs and coverage options diligently compare car insurance quotes, and drive off with the peace of mind you deserve.

Also read: Is My Address Making My Car Insurance Expensive?