Tips on Choosing the Best Car Insurance for You
So you finally did it. You bought yourself a brand new car! Congratulations on this milestone, and may the roads rise up to meet you. We mean this in the figurative sense, of course.
The next item that should be on your to-do list is to get car insurance. You have invested your precious money in the car, now it’s time to get insured to make sure both you and your car are protected.
You can’t avoid bad drivers forever, so you should not put off getting car insurance. It can save you from the financial stress of having your car repaired when you get in an accident. It can also help you sleep better at night knowing that you have some form of protection on your car.
It can be a daunting task for some because it’s not as simple as buying groceries. But it’s completely necessary. Here are some tips to help you pick the best car insurance for you.
Do Your Initial Research
Just like purchasing a home or life insurance, you have to do your research before you purchase your car insurance. There are so many car insurance companies in the Philippines that offer very competitive products, and it can be overwhelming to look through everything. Our tendency is to pick the first one we see just to get it done and over with.
However, this should not be how purchasing car insurance should be done. Not all car insurance providers and car insurance policies are the same. If you go ahead with the purchase with this kind of assumption, it can prove to be very costly and headache-inducing for you in the future.
You can always visit the company’s website to get the information you need. Most insurance companies have a page just for FAQs. In case you have other questions regarding their products, you can send your questions in their chat box, or simply call their hotline, or drop an email. You can ask for a quotation and from there you can start comparing products and rates.
Confidently Learn The Jargon
If this is your first car insurance purchase, it is necessary that you know the insurance jargon. Like knowing the difference between actual cash value and benefit, or what Third Party Liability means.
It can be confusing at first. But the more you read about and use these terminologies, the more you will get familiarized with them. Knowing what these terminologies mean will equip you with the knowledge to fully understand what you are paying for and just how much your car insurance will pay in the event of an accident.
To guide you on your search, you can get more information with our step-by-step infographic about how car insurance coverage works in the Philippines.
Choose a Financially Sound Insurance Company
You should purchase your car insurance from a dependable provider with a proven track record. It should be financially stable if you don’t want to suffer from stress when it comes to claims and payouts.
All the information you will need can be accessed online. Check if the company is included in the Insurance Commission of the Philippines website by visiting www.insurance.gov.ph.
Your safest bets are usually the most well-known insurance providers. When you purchase your car from a major car dealership, they will not recommend car insurance companies with dubious or weak financial standing.
If you want to insure your car with a smaller or lesser known insurance provider, do your meticulous research. Check their company website and see that it’s updated. If you have the time, you can also drop by their company headquarters. Google everything you can about the company that will give you information about their background and financial performance.
You can also opt to go for an independent insurance broker. Unlike an insurance agent who can only offer their company products, an independent insurance broker can offer you several products from several insurance companies and find you the perfect fit.
Of course, a car insurance company with excellent customer service wouldn’t hurt, too.
Ask Referrals From Reputable Sources
Word of mouth is very effective, especially if it comes from credible sources. They can share their firsthand experience with car insurance companies to help you make your decision. At least you’ll get an idea how these companies handle their customers in the unfortunate event that they get into an accident.
Assess Your Typical Risks
You have to determine the risks involved when you’re driving your car. Choose your coverage based on your needs and your driving habits.
If you usually drive in flood-prone areas, you may have to purchase coverage for acts of nature. If you like to go on long out-of-town trips or off-roading with the gang every weekend, you may have to purchase something that will protect your vehicle against damage while maneuvering through rough terrain.
For city drivers, an insurance coverage that will protect you against collisions, car theft, or physical injuries is recommended. You can get a comprehensive car insurance coverage for this.
The amount that you have to pay for your car insurance will vary. It will depend on what type of car you own, its condition, and your usage. Suffice it to say, car insurance premiums on a car that you use for racing will definitely be more expensive.
Compare at Least Three Different Products
Once you have finished shopping around and completing your initial research, it’s time to take your top picks. You can narrow your choices down to three so it’s easier for you to check and compare. From there, you can decide whether you need a comprehensive or a third party liability insurance.
Always check the details. Reading through the fine print can make your eyes glaze over, yes. But believe us when we tell you that you have to read and understand the terms of your policy. Make sure that everything you and your agent have talked about are clearly stated in the policy.
If there are some things that are not very clear to you, don’t hesitate to ask. It’s better to ask all the questions and get your clarification now than much later, when you’ve already figured in an accident.
Use our online calculator and comparison tool to find out which is the best car insurance company that can provide for your specific needs.
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