Switching car insurance providers in the Philippines: A detailed step-by-step guide

Switching car insurance providers in the Philippines: A detailed step-by-step guide

Car insurance is a legal requirement in the Philippines. Each vehicle owner must insure and renew their motor vehicle insurance annually. If you're driving your car without active insurance, you're asking for trouble. Suppose you're caught driving without active insurance, especially in case of an accident or a traffic rule violation, you will be slapped with a hefty fine. In worse cases, your car can be impounded. While Third-party Liability (TPL) insurance is mandatory for vehicles in the Philippines, it's generally a good practice to insure your car with comprehensive insurance. Comprehensive car insurance cover has its advantages and is therefore referred to as the ideal car insurance cover.

KEY TAKEAWAYS

  • Can I cancel my insurance before expiration?

    You can cancel your insurance at any time by informing your insurance company. However, depending on the policy terms, you may be charged a cancellation fee. Also, ensure that you opt for new insurance right away since driving without active insurance is illegal in the Philippines.
  • Do I need to inform my existing insurance company before changing to the new company?

    You must inform your existing insurance company about cancelling the existing policy, because only after the cancellation can you opt for a new policy. Besides, every company has its own policy and terms of cancellation and refund of unused premiums, so it’s advisable to contact them if you decide to switch the policy.
  • What if I cancel my insurance and buy a new one later?

    Driving without active insurance is causing trouble since it is a legal offense. Ideally, there should not be a gap between switching your insurance companies and ensuring that your vehicle is covered at all times.
  • Do I get a refund if I cancel my insurance?

    Every company's refund policy is different. Some companies provide a refund based on the unused premium, while others may have a non-refundable clause for cancellation. It is best to contact your insurance provider and get clarification regarding the refund policy.
  • Is there an early cancellation penalty on car insurance?

    Yes, there is a cancellation fee applicable if you cancel your insurance policy earlier than the full tenure. Read your policy documents carefully or contact your insurance company for full details about the charges.
  • Save Up to 60% on Car Insurance Renewal

    • CASA Coverage Up To 10 Years Old
    • Free Roadside Assistance
    • Flexible Payment Terms
    • Free Acts of God/Acts of Nature
    Renew Insurance Renew Insurance T&C

    As a loyal, repeat customer of an insurance company, you're likely to enjoy various perks, such as extra discounts on premiums, additional no-claim bonuses, or supplementary benefits. However, this doesn't imply an obligation to remain with a single provider indefinitely. Over time, your insurance requirements may change, and there's always the chance that new companies are presenting more lucrative deals. As a consumer, you are free to select the insurance provider that best suits your needs.

    When can you change your insurance provider?

    Generally, the period for auto insurance is one year, and you can change the insurance provider at any point during this tenure. However, you must remember that changing insurance providers mid-way can attract penalties and early termination charges. Moreover, you will end up paying more for an effective 1-year period since both providers will charge you the total one-year premium amount. Therefore, the best time to switch insurance providers is right before the next renewal date. Start shopping around a month or two in advance and close the deal when the existing insurance expires.

    Also Read: Stopped making car insurance payments? Here are the consequences you’ll face

    Switching car insurance

    What is the procedure to switch insurance providers?

    There’s no rocket science behind changing your insurance provider. Once you decide to switch, follow these simple steps:

    Step 1: Understand why you want to switch

    You might be associated with a particular insurance company for a year, two years, or even more than that. If you're considering switching, it is essential first to determine the reasons for switching. Assess all your insurance needs and see if these are covered in your existing policy. If there are additional needs, then that's one of the reasons to look for other options. Secondly, after assessing your needs, if you feel you're being overcharged for coverage by your existing insurance provider, it makes sense to shop around and look for a better deal.

    Step 2: Shop around and compare deals

    Once you have identified your insurance needs, it's time to go insurance shopping. The best part is that you can shop from the comfort of your home. Gone are the days of contacting individual insurance agents, providing them with all your personal and car details, and waiting for them to offer you a quote.

    Today, you can surf the internet and browse comprehensive insurance comparison portals, like carmudi.com.ph, to quickly select the coverage items and directly compare quotes from multiple providers. It also allows you to add and delete add-ons to the policy to check the quotes. The quotes would be conveniently listed down from the cheapest to the most expensive, giving you a direct comparison. But don't be lured by the premium cost only. Take a look at the coverage and benefits to draw a reasonable comparison.

    Step 3: Do a background check

    Once you have shortlisted the providers after a thorough comparison, it's time to select the final, or we should say 'the best one.' Don't just blindly select the provider; do a proper reference check. If you have friends and family members who own a car, and someone already has their vehicle insured by the company you intend to, you can get first-hand review and experience. Look for customer reviews and ratings of the provider on the most common platforms. The more positive reviews, the better the chances of the genuineness of the provider. A word of caution here - Don't go for a provider with 100% positive reviews. The reviews are likely fake. Look for genuine reviews.

    Step 4: Select your new car insurance provider

    After a deep dive into the world of car insurance and careful consideration of all the factors, ask for a quote from your selected insurer and move forward with it. Ensure that you decide based on three critical factors: premium cost, coverage components, and customer service. Review the policy document carefully and clear all your doubts with the company representatives.

    Step 5: Review policy terms and condition

    Once you've zeroed in on the insurance provider, review all its terms and conditions. You need to dive deep into the policy terms to make sure you don't miss out on any important term that can crop up as a barrier to a smooth insurance claim. Don't leave the policy terms mentioned in those tiny fine prints. They are sometimes the most crucial ones.

    Step 6: Switch at the right time to ensure coverage continuity

    The timing of switching the insurance provider is crucial. As advised earlier, it's best to start looking for options a month or two in advance and switch between policies one or two weeks before the expiration of the existing policy. This way, you don't leave any gaps in between the coverage. If you meet with an accident or your car gets stolen during the gap period, you'll have to bear the cost of everything, from your car damage to hospital expenses to third-party damages. So be careful not to leave a gap between policies to avoid leaving a big hole in your pocket.

    Step 7: Make the premium payment

    Now that you are all set to proceed with the new insurance provider, it's time to make the premium payment. You can easily make the payment through internet banking, mobile banking, or payment apps. But if cash is the only option available, you will need to visit the nearest bill payment center of your insurance provider and deposit the premium there.

    Step 8: Inform your loan provider

    If your car is financed, it's crucial to inform the lender about the change in your car insurance provider. Failing to do so might lead them to believe that your car isn't insured once the current policy expires. This oversight could potentially disrupt loan processes or requirements. Moreover, obtaining a no-dues certificate upon loan completion might become challenging without this vital information. Ensure to notify your loan company to avoid unnecessary complications.

    Also Read: Exploring essential add-ons for car insurance in the Philippines

    Switching car insurance

    Tips for a smooth transition between insurance providers

    Switching insurance providers may seem daunting, but it doesn't have to be. With some preparation and organization, you can make the transition smooth and stress-free. Here are some practical tips to help you navigate the switch:

    Review your insurance needs: Periodically reassess your coverage options and explore new policies to ensure you always get the best vehicle deal. As your circumstances change, your insurance needs may also evolve. Stay proactive and keep yourself informed about your options.

    Stay informed about the terms and conditions: Familiarize yourself with the coverage limits, deductibles, and exclusions. This will help you avoid any surprises during the claims processing stage. If you have any questions or concerns about your new policy, don't hesitate to reach out to your provider for clarification.

    Document everything: Keep a record of all communications with both your old and new insurance providers, including emails, letters, and phone calls. This will help ensure clarity and accountability throughout the process. If any issues or misunderstandings arise, you'll have a paper trail to refer back to and resolve any disputes.

    Avoid any coverage gaps: Try to have your new policy active before your old one expires. This is especially important if you're switching providers mid-term, as you don't want to leave yourself vulnerable to any unexpected expenses or liabilities.

    Notify relevant parties on time: In addition to notifying your loan provider, it's essential to inform any other relevant parties, such as your car dealership or leasing company. This will help prevent any complications or delays in the transition process.

    Switching car insurance

    Having car insurance is a legal requirement in the Philippines, but it is your right as a consumer to get the best deal on your car insurance. With easy access to insurance comparison tools like carmudi.com, you can choose the best car insurance for yourself in just a few clicks. Remember these steps, and you’ll be all sorted for good.

    Also Read: Choosing the right car insurance policy in the Philippines

     

    Read All

    Featured Articles

    Recommended Articles For You

    Read All

    Featured Cars

    • Upcoming

    Car Articles From Zigwheels

    • News
    • Article Feature
    • Advisory Stories
    • Road Test
    • Isuzu San Pablo updated in time for 23rd anniversary celebration
      Isuzu San Pablo updated in time for 23rd anniversary celebration
      Ruben Manahan IV . Today
    • LTO issues ‘no release’ policy against impounded colorum vehicles
      LTO issues ‘no release’ policy against impounded colorum vehicles
      Paulo Papa . Today
    • Inchcape PH still sells ‘Last Call’ ICE-powered Dodge Challenger
      Inchcape PH still sells ‘Last Call’ ICE-powered Dodge Challenger
      Ruben Manahan IV . Jun 14, 2024
    • Hyundai presents 1st car movie
      Hyundai presents 1st car movie
      Paulo Papa . Jun 14, 2024
    • Hyundai to open N pop-up store in Alabang
      Hyundai to open N pop-up store in Alabang
      Ruben Manahan IV . Jun 14, 2024
    • Kia Sonet vs. the competition
      Kia Sonet vs. the competition
      Cesar Miguel . Jun 14, 2024
    •  Sibling swordfight: Mercedes-Benz EQE SUV vs. EQE sedan
      Sibling swordfight: Mercedes-Benz EQE SUV vs. EQE sedan
      Cesar Miguel . Jun 13, 2024
    • 6 safety features that help drivers become more independent
      6 safety features that help drivers become more independent
      Cesar Miguel . Jun 11, 2024
    • Kia Sonet vs. the competition
      Kia Sonet vs. the competition
      Paulo Papa . Jun 11, 2024
    • MG G50 Plus vs. the competition
      MG G50 Plus vs. the competition
      Cesar Miguel . Jun 11, 2024
    • Here are some ideal destinations and safety tips for the upcoming Holy Week
      Here are some ideal destinations and safety tips for the upcoming Holy Week
      Paulo Papa . Mar 08, 2024
    • Here are some New Year’s resolutions for car owners
      Here are some New Year’s resolutions for car owners
      Paulo Papa . Jan 03, 2024
    • PH auto market: 2023 in retrospect
      PH auto market: 2023 in retrospect
      Paulo Papa . Dec 15, 2023
    • Here’s a holiday gift guide for car enthusiasts
      Here’s a holiday gift guide for car enthusiasts
      Hazel Nicole Carreon . Dec 15, 2023
    • Oil players cut pump prices anew
      Oil players cut pump prices anew
      Paulo Papa . Nov 14, 2023
    • Sensational 7-seater: Honda BR-V V
      Sensational 7-seater: Honda BR-V V
      Paulo Papa . May 20, 2024
    • Style made affordable: Jetour Dashing
      Style made affordable: Jetour Dashing
      Ruben Manahan IV . May 14, 2024
    • Compelling crossover: Geely GX3 Pro Comfort
      Compelling crossover: Geely GX3 Pro Comfort
      Paulo Papa . May 13, 2024
    • Staying cool: Geely Coolray Sport
      Staying cool: Geely Coolray Sport
      Paulo Papa . May 03, 2024
    • Radical cut: GAC GS3 Emzoom R-Style
      Radical cut: GAC GS3 Emzoom R-Style
      Ruben Manahan IV . Apr 30, 2024