Year-end car insurance renewal/switch tips for Filipino car owners - A must-read

Renewing or switching a car insurance policy is a routine job. Still, for a car owner like you, the year-end period is the best time to reassess your policy and coverage. With fluctuating vehicle values, new insurance offerings, and mounting holiday expenses, making an informed decision can protect both your car and your wallet.

To make things easy, we have curated a year-end car insurance renewal/ switch tips for car owners. Do not worry, this guide is simple, practical, and easy to follow - even if the tricky insurance terms confuse you.

So, let’s get started …

Car insurance renewal - Understanding the basics

What is the car insurance renewal process? Car insurance renewal is the process of extending your current policy after it expires, typically after a year from the policy's issue date.

In the Philippines, insurance providers typically send a renewal notice 30 to 45 days before policy expiry. This is your chance to review coverage, premium, and add-ons before agreeing to extend the policy to another year.

Why is the year-end the best time to review your policy? That’s because year-end renewals often include promotional discounts, bundled offers, and flexible payment terms.

During this period, insurers compete more aggressively to meet annual targets, which benefits policyholders.

Also Read: Impact of safety features on car insurance premiums

Common policy renewal mistakes

Let us now learn about the common mistakes Filipino car owners make when renewing their policy -

Automatically renewing without comparing

Many car owners renew their existing policy out of habit. No doubt, this practice is convenient; it may lead you to miss out on better coverage or lower premiums available elsewhere.

Ignoring changes in car usage and value

Over time, cars age, reducing their market value. When a car owner fails to adjust their vehicle’s insured value, they end up paying more for insurance than necessary. In addition, changes in driving habits, such as working from home or the office shifting to a busier area, should be considered.

Also Read: How to avoid lapses in car insurance coverage in the Philippines

Step-by-step guide to renewing your insurance policy

Documents you needed for renewal

• Vehicle’s OR/CR
• Previous insurance policy
• Valid government-issued ID
• Latest car pictures

How early should you renew your policy?

Ideally, begin the renewal process at least a week or two before the policy expiry to avoid lapses, which can lead to penalties or claim denials.

Guide to renew the policy

Step 1: Review your policy
Before renewing your policy, give it a thorough review and identify which parameters are deal breakers for you. You can talk to your agent or insurer about changes to the policy's terms and conditions that could affect your coverage or claims.

Step 2: Assess your coverage
Now that you are close to the policy renewal date, review the coverage and make appropriate amendments (increasing or removing add-ons) based on your current needs.

Step 3: Decide on your deductible
Renewal is the perfect time to review your insurance costs and consider adjusting your deductible.

Step 4: Review your provider
Does your provider offer a hassle-free claim process, prompt customer service, and budget-friendly insurance? Before renewing the policy, ask these questions and decide whether to continue.

Note: whether you plan to renew your existing plan or switch to a new provider, it is highly recommended that you obtain insurance quotes from at least three providers and make a thorough comparison.

Also Read: Defensive driving tips for Filipino drivers – Smart habits that pay off

Switching car insurance providers - Understanding the basics

It is not necessary to remain with the original insurance provider you signed up with a year ago. Yes, you can change your provider, as it is your right as a consumer. Furthermore, doing so will help you catch on better deals.

When should you consider switching insurance providers?

Rising premium costs
Inflation is one of the factors driving the annual premium increase, along with claim history and depreciation. Many car owners do not realise that they can find comparable or even better coverage at a lower premium by switching providers.

Poor claim experience
Slow processing, denied claims, and unclear requirements are common reasons car owners decide to switch providers. Note that a reliable insurer should provide clients with prompt assistance, especially during accidents or emergencies.

Benefits of switching providers before year-end

Lower premiums
Switching providers can help you secure lower premiums; compare at least two or three providers to ensure the best deal.

Better coverage
Another benefit of switching providers is access to higher coverage limits and/or free add-ons, such as roadside assistance and personal accident coverage.

Improved claims
Not all insurance providers handle claims the same way. If you aren’t satisfied with your insurer, year-end is a good time to make changes and switch to a provider that offers faster, smoother claim processing.

Smart tips to switch providers

Compare insurance providers: Yes, it is essential to compare providers, but don’t focus solely on premiums. Instead, concentrate on coverage limits, deductibles, and exclusions.

Checking the insurer’s reputation: Ensure the provider you plan to switch to is certified by the Insurance Commission and has a strong reputation. Here, you can also use customer reviews to learn more about the provider.

Review coverage inclusions and exclusions: Before committing to a new provider, ensure the policy includes essential coverages such as theft, Acts of God, and third-party liability.

Also Read: A simple guide to compare car insurance policies in the Philippines: Smart & practical tips

Step-by-step guide to switch providers

Step 1: Review current policy
It is essential to review the following details in your existing policy: expiration date, coverage inclusions, deductibles, and the insured car's value. This information will help you compare & analyse other policies.

Step 2: Compare providers
Look beyond premium; compare providers based on coverage limits, customer support, claim settlement ratio, and available add-ons.

Step 3: Secure a new policy
It is advisable not to cancel your old policy until your new policy is approved. This will help prevent coverage gaps that could lead to claim denial.

Step 4: Cancel your old policy
Let your providers know about your plans to switch. You can do so by submitting a written cancellation request and returning the required documents. Inquire about a prorated refund.

Documents required -

• Vehicle OR/CR
• Government-issued ID
• Current insurance policy
• Recent car photos

Note: Having complete documents will speed up the approval process.

Also Read: Common car insurance renewal mistakes that can cost you more

Common mistakes to avoid when switching providers

Preferring price over coverage: A cheap insurance policy may seem attractive, but it may exclude essential coverages such as theft, fire, and Acts of God. Make sure to read the fine print before deciding upon a new provider.

Overlapping policies: A double policy means double the payment. Therefore, ensure you switch the policy carefully.

Also Read: Car insurance add-ons in the Philippines: Myths, facts, and smart choices

Tips to save money on car insurance renewal/switching providers

Three words - discounts, bundles, and no-claim bonus

Make sure to inquire about the following with your insurance provider before renewing the policy -

• No-claim discounts
• Cash payment discounts
• Multi-policy bundles

Remember, even a small discount can add up over time and save you substantial money.

Bottom line

Remember, renewing or switching car insurance doesn’t have to be confusing or stressful. You must plan, compare options, and determine the appropriate age range for these car owners to save money while remaining fully protected. When considering insurance renewal/switch, give this guide a thorough read. A little effort today can lead to safer, more confident driving in the year ahead.

Also Read: Why knowing your car insurance expiry date matters—and how to check it