Your guide to car insurance payment options in the Philippines

Car Insurance

We have discussed car insurance in depth, from choosing the right car insurance policy in the Philippines to guiding you through the claim process. Lately, we have even shed light on the consequences of not paying your car insurance premium, which got us thinking about those who can pay their premium on time and the different payment options they can opt for.

KEY TAKEAWAYS

  • Do insurance companies offer grace periods on premium payments?

    Often, car insurance providers offer a grace period to their clients, meaning a few extra days beyond the due date for the premium deposit without any penalty or cancellation.
  • What if I don’t pay my insurance premium?

    If you do not pay insurance premiums on the due date, during the grace period, or even after that, it would lead to the end/lapse of his/her car insurance policy.
  • What do insurance companies do when a client misses a due date?

    A few days after the due date, the insurance provider sends the client an intimation via mail or SMS to pay the premium within the grace period so the coverage doesn’t end.
  • Do add-ons increase my insurance premium?

    Yes, adding supplemental coverage options to your insurance policy will likely increase your premium rates.
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    Now, it is crucial to prioritise your car insurance payments, as they will come in handy while making claims. Say, for instance, you get involved in an accident and head to the insurance company to claim. They won’t be able to expedite the process until they first check your payment record.

    Worry not, as there are now ways to efficiently manage your car insurance premium payments. Gone are the days when you need to plan a visit to the bank or insurance company to settle the dues. In today’s busy world, there are several modes of payment that allow you to make timely payments (sometimes even before the due date).

    car loan paid

    Enough of talking. Let’s now get down to business and discuss the options available to pay your car insurance. The list is quite lengthy and includes the following -

    auto insurance

    Also Read: Why might your car insurance claim get rejected in the Philippines?

    Let us now discuss each of the above payment options in detail, starting with

    Bank Deposit or Over-the-Counter Payment

    Every insurance provider has a partner bank that accepts premium payments from their clients. To make a payment, you must check the bank associated with your insurance company and make the payment on or before the due date.

    Pros & Cons

    Pros

    Cons

    This payment option offers immense peace of mind, as the payment gets accepted right away.

    A bit inconvenient, as you have to visit the branch especially. 

    As the bill is paid in person, there are zero chances of a security breach. 

    Cash-in-hand is required, which may add an ATM visit. 

    It makes money management easier, especially for those who track expenses manually.

    More time is required due to the long queue at the bank and manual process for form filling and cash deposit.

    Step-by-step guide

    Step 1: Head to the bank and get a queue number.

    Step 2: Fill out the bill payment slip. Make sure you fill out all the details correctly, especially the biller's name (insurance company’s name), payor’s name (policyholder’s name), account/reference number (total amount to be paid), and bill amount.

    Step 3: When your turn arrives, submit the filled-out slip and hand over the payment to the teller.

    Step 4: Collect the machine-validated payment slip and keep it safe. The insurance company often requires it as proof of payment.

    insurance payment via online banking

    Online Banking

    If visiting the bank is not your cup of tea, then consider online banking. Yes, you can opt for the online banking facility of your provider’s partner bank and make all the premium payments at your convenience and comfort.

    Pros and Cons

    Pros

    Cons

    Online banking allows you to pay bills anytime from anywhere.

    There’s a heavy risk of your account getting attacked by hackers, scammers, and fraudsters.

    No threat of theft, as your money is traveling from your digital wallet to that of the banking partner.

    If, by chance, due to an error, the amount does not get reflected in the banking partner’s wallet then your dues will not get cleared unless the matter is resolved.

     

    There is a high risk of data breach if the partner’s bank website is not secure enough. 

    There is a high risk of data breach if the partner’s bank website is not secure enough.

    Step-by-step guide

    Step 1: Access the partner bank’s e-banking channel.

    Step 2: Enter your credentials and access your account.

    Step 3: Select “Pay Bills” or “Bill Payment” option from the menu.

    Step 4: Select your insurance provider.

    Step 5: Fill out all the required information on the online form.

    Step 6: Confirm payment details (depending on the bank you might need to enter an OTP).

    Step 7: Click submit and check your email for payment confirmation from the bank.

    If you are making insurance premium payments via online banking, you’ll need to enroll your insurer as a biller online. This request will take 24 hours to process, after which you can proceed with your car insurance payment.

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

    Mobile Banking & Payment Applications

    One of the most used modes of payment these days is banking and payment applications. These mobile apps add a lot of convenience to users’ lives, as they provide them the freedom to make payments on the go. Every bank has its own mobile app that can be used to pay car insurance premiums. While there is no charge in most cases, sometimes, the provider's partner bank can charge a minimum service fee for successful payment.

    Pros and Cons

    Pros

    Cons

    Car insurance payments can be made via mobile apps from anywhere at any time. 

    There’s a heavy risk of your account getting attacked by hackers, scammers, and fraudsters.

    No risk of theft as money is getting digitally transferred from your digital wallet to a bank provider.

    Occasional bugs in the app prevent you from making premium payments.

     

    Payment disputes may result in long discussions with the partner’s bank and app developer, causing you problems if the due date is approaching.

    Step-by-step guide

    Step 1: Access the partner bank’s banking application or a favoured payment app on your smartphone or tablet.

    Step 2: Enter your credentials and access your app account.

    Step 3: Select “Pay Bills” or “Bill Payment" option from the menu.

    Step 4: Select your insurance provider.

    Step 5: Fill out all the required information on the online form.

    Step 6: Confirm payment details (you might need to enter an OTP depending on the bank).

    Step 7: Click submit and check your email of payment confirmation from the application.

    car insurance payments

    Bill Payment Centers

    Bill payment centres provide over-the-counter bill payment services in the Philippines. You can simply head to these centres and check with them if they accept your provider’s premium. If yes, you only need to take the cash to any of the accredited bill payment centres branches nationwide, and your job is done.

    Some of the bill payment centres in the Philippines are - 7-Eleven, Cebuana Lhuillier, Bayad Center, Robinsons Department Stores, M Lhuillier, ECPay outlets (select Ever Superstores, Western Union branches, Petron stations, Tambunting Pawn Shops), and Payment counters at Savemore, SM Supermarket, SM Hypermarket, and The SM Store.

    Bill payment centres’ online facility allows you to skip the long queues and spare yourself from all the trouble.

    Pros & Cons

    Pros

    Cons

    As the bill is paid in person, there are zero chances of a security breach. 

    Cash-in-hand is required which may add an ATM visit. 

    It makes money management easier, especially for those who track expenses manually.

    More time is required due to longer queues at the centre and manual process for form filling and cash deposit.

    Paying in person frees you from the tension of any sort of online security breaches.

     

    Step-by-step

    Step 1: Check out the bill payment centre that is accredited by your insurance provider.

    Step 2: Fill out the transaction/payment slip.

    Step 3: Hand over the accomplished slip, billing statement/premium notice, and cash payment to the person in charge.

    Step 4: Collect the proof of payment, i.e., validation payment slip and official receipt.

    ATM Banking

    Another way to pay for your insurance premium is via automated teller machine (ATM) or debit card. All you need to do is find your car insurance provider’s partner bank ATM and do the needful.

    Paramount Life and Malayan Insurance are the two insurance companies that accept payments via ATM.

    Pros & Cons

    Pros

    Cons

    With an ATM in hand, you can pay the premium 24/7, which makes the option super convenient.  

    You may have to pay certain fees and charges.

    Needs no internet connection, which is the case with mobile and online banking. 

    The chances of getting fraud by scammers are high. 

    Step-by-step guide

    Step 1: Visit the nearest insurance provider’s partner bank ATM.

    Step 2: Insert the ATM or debit card into the ATM and enter your PIN.

    Step 3: Select “Bills Payment” followed by “Category/Type” and “Company/Biller.”

    Step 4: Select the preferred account you wish to make the payment from for the premium.

    Step 5: Enter policy/reference number.

    Step 6: Enter the premium amount.

    Step 7: Collect your transaction slip and keep it safe.

    GCash

    GCash

    GCash is a locally-born Filipino mobile payment service owned by Globe Fintech Innovations, Inc., with a large user base. If you are among GCash’s million users managing your finances via the app, it is a great way to pay car insurance. Overall, with a few smartphone taps, you’ll be done with the payment.

    Some of the car insurance companies that accept payments via GCash include Standard Insurance, Fortune General Insurance Corporation, Malayan Insurance Co., Inc., FPG Insurance, Pioneer Insurance & Surety Corp., and OONA Insurance.

    Pros & Cons

    Pros

    Cons

    With GCash, you can pay bills at your convenience using just your phone number. All that is needed is a good internet connection.

    There’s a heavy risk of your account getting attacked by hackers, scammers, and fraudsters.

    Short on cash? no worries. You can pay bills using GCash’s personal credit line (offered only to verified users).

    Occasional bugs in the app prevent you from making premium payments.

     

    Poor customer service might bother you as in case of dispute resolution may take time.

    Step-by-step

    Step 1: On your smartphone, open the GCash application.

    Step 2: Click on the “Pay Bills” icon.

    Step 3: Under the “Biller category,” select “Insurance.”

    Step 4: Under the list of insurance companies, select your provider.

    Step 5: Enter all the required information including account number, amount to pay, and email-id.

    Step 6: Review and confirm payment.

    Credit Card

    Another cashless method of paying for your car insurance premium is via credit card. The good news is that most car insurance companies accept payments through Mastercard or Visa.

    Here are a few car insurance providers that accept premium payment through credit card - Standard Insurance, MoneyHero Insurance Brokerage, Inc., Pioneer Insurance & Surety Corp., Etiqa Life, COCOGEN, and Malayan Insurance.

    Pros & Cons

    Credit card allows you to settle your car insurance dues at your convenience. 

    In addition to the principal amount, you’ll be required to pay interest (in the succeeding billing cycle).

    When you are low on cash, and the due date is just around the corner, the credit card will cover you. 

    Some baking partners may require you to pay the premium in person via credit card.

     

    Visiting your bank for insurance payment is a bit time-consuming, as everything is done manually. 

    Step-by-step guide

    Step 1: Head to your car insurance provider's nearest office.

    Step 2: Proceed to payment transaction; present your credit card to the teller.

    Step 3: Post payment, collect your credit card and the official receipt.

    car insurance payment

    Check Payment

    Another great and safe way to pay for car insurance is to issue a post-dated check. This is also a good way to issue staggered payments for your policy. However, not all companies accept payment via check. Those that do are Malayan Insurance Co., Inc. and Etiqa Life and General Assurance Philippines, Inc.

    Pros and cons

    Pros

    Cons

    It is a very convenient payment option as you can issue a post-dated check to your provider.

    In case of insufficient funds, the check will bounce, leading to a bank-issued penalty.

    There is no need to shell out a huge amount of cash in one go, all thanks to staggered payments.

    This payment procedure takes time, as you have to undergo a manual process.

    Step-by-step guide

    Step 1: Head to your insurance provider’s office.

    Step 2: Issue the payment check for your insurance premium.

    Or
    Send the payment check via courier to the insurance provider’s office.

    Or

    If the insurer requires, you’ll need to deposit the premium payment check over the counter at the partner bank’s branch.

    Bottom line

    By now you must be through with the various premium payment options and you are to choose the one that best suits your convenience.

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

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