Top 10 tips for reducing your car insurance costs in the Philippines

Many drivers see car insurance as an unpleasant cost of car ownership. But when an accident strikes, and hopefully it never does, that insurance suddenly feels like a lifesaver for your finances. While it can't prevent accidents, car insurance ensures you're not left with a hole in your pocket with that hefty repair bill. Plus, in the Philippines, it's mandatory to have car insurance. While the initial cost might seem high, there are ways to get a good deal on car insurance and save money in the long run.

Why is it beneficial to reduce insurance costs?

Reducing car insurance costs goes beyond just saving money. Lower premiums free up your budget for unexpected car repairs, maintenance, or even fuel. It also empowers you as a consumer. With a better understanding of your coverage needs and discounts available, you can negotiate confidently and find the best deal. This financial responsibility translates well to other areas of your life, making you a more informed decision-maker overall.

Also Read: Must-have car insurance policies for Philippine drivers

Top 10 tips to reduce your car insurance costs

Compare quotes from multiple providers

One of the most effective and easiest ways of saving money on insurance costs is to shop around and compare premium quotes from multiple providers before selecting a particular company. The comparison can be easily done by accessing insurance quote comparing websites, like Carmudi Philippines. Every provider has a distinctive way of calculating the premium, which means you will get varied quotes for the same car model and make. Ensure that you select the coverage that matches your needs. The cheapest premium may not necessarily be the best for you, so always compare the cost of the premium against the coverage offered.

Opt for a higher deductible

Deductible is the amount you pay from your pocket in case of an accident before the insurance settles the claim. A higher deductible amount results in a significantly low insurance premium cost. But, this is a tricky trade-off. You will need to keep an additional corpus of funds, particularly to cover you in case of an accident, since you’ll need to pay more.

Avoid unnecessary coverage

There are many add-on coverages available in the market, and it is human to get more defensive and opt for too many coverages. But be mindful while choosing the add-ons and coverages. Select only the necessary ones, and that will bring down your car insurance premium considerably. If you live in an accident-prone area, or an area that is known to be impacted by natural disasters or civil unrest, then you can opt for the required add-ons, else simply skip them to save money.

Choose a car that has a low insurance cost

Not all cars have the same insurance premium range. The premiums are mainly based on two factors: the cost of the car and the chances of it being stolen. Cars from premium brands like Mercedes Benz, Audi, Lexus, Jaguar, etc. are expensive and carry a high insurance cost. Similarly, sports cars are expensive to insure since they are super fast and at high risk of accidents. On the contrary, less costly and safer cars are cheaper to insure.

Improve your credit rating

A lot of car insurance companies consider your credit score a key parameter to decide the premium of your car. Before you shop around for a new car insurer, ensure that you settle your financial obligations and generally maintain a good credit history. If you already have a good credit score, kudos to you! But if not, then try bringing up your credit score to get a good insurance deal.

Bundle your insurance policies

Many insurance providers offer discounts if you bundle multiple insurance policies like car insurance, home insurance, renter’s insurance, etc. Bundling is a great way of paying a lesser premium as compared to a standalone car insurance premium. However, you must compare the individual policy premiums to ensure that the multi-policy premium is actually saving money for you. And don’t forget to compare the coverage as well.

Keep a clean driving record

Car insurance companies reward safe drivers with lower premiums. By following traffic laws, avoiding accidents, and maintaining a clean driving record, you demonstrate responsibility. This can translate to significant savings on your car insurance, putting more money back in your pocket.

Explore available discounts

There are so many insurance companies who keep coming up with various discounts from time to time to attract new customers and retain the existing ones. If you’re a repeat customer, ask for a discount from your insurance agent. More often than not, you’re likely to get some kind of discount. Some companies also offer loyalty discounts to retain customers, and that’s another way of availing a good discount. If you have a good driving history, possess a high credit score, and have been making timely payments in the past, mention it.

Pay the premium in one lump sum

You can get a decent discount if you make a one-time payment instead of spreading the car premium cost across months. Most car insurance providers offer this facility. You can contact and ask your insurance agent while renewing the policy or look for this option when buying a new one.

Keep your car safe

Last but not least, one way to get a discount on car insurance is to convince the insurer that you’re serious about your car's safety. Tell them if you’ve installed safety equipment in your vehicle and if you have a safe place to park it, like a garage. It may get you a discount.

To sum it up

While car insurance is a must-have for Philippine drivers, it doesn't have to be a budget burden. By understanding your coverage needs and comparing quotes from different insurers, you can become a savvy shopper and find an affordable plan. Maintaining a safe driving record and a good credit history can unlock further discounts. Remember, these savings free up money for other car-related expenses or give you more breathing room in your budget. So, ditch the expensive one-size-fits-all approach and take control. Use these tips to find the perfect balance between protecting your finances and securing your car.

Want to get a free car insurance quote? CLICK HERE.

Also Read: Important insurance terms a car buyer should know