Last Updated on 9 months by DiaryNiGracia
Things You Should Consider Before and After Buying a Car
So you finally succeeded. You just acquired a brand-new automobile for yourself! Thank you for reaching this important milestone, and may the roads widen to welcome you. Of course, we are figurative when we say this. Getting automobile insurance should be the next thing on your to-do list. You have spent a lot of money on the car, so now is the time to safeguard you and your investment. You shouldn’t buy auto insurance because you can’t stay safe from impaired drivers forever. When you get into an accident, it can spare you the worry of having to pay to have your automobile fixed. Having some type of protection can also help you sleep better at night.
Minutes to Read: 10 minutes
Age Bracket: 18-50 years old
Advice for Picking Your Best Auto Insurance
Conduct Preliminary Research
You must conduct thorough research before buying auto insurance, just as you would before buying a home or life insurance. It can be hard to search through everything because many auto insurance providers in the Philippines provide highly competitive packages. To get things over with, we often choose the first option we come across.
However, this is not the proper way to buy auto insurance. Not all auto insurance companies and auto insurance plans are created equal. If you proceed with the purchase under this assumption, it could cost you a lot of money and cause you headaches.
The company’s website is always an excellent place to find the required information. Most insurance providers include a page devoted solely to FAQs. If you have any additional inquiries about their items, you can use their chat feature, phone their hotline, or write them an email. You can request a quote and then start evaluating other options and prices.
Grasp The Jargon With Confidence
Suppose this is your first time buying auto insurance. In that case, you must be familiar with the insurance jargon, like understanding the distinction between benefit and actual cash value or what Third Party Liability entails. Initial confusion may occur. However, you will get more familiar with these terms as you learn about and use them more. Understanding the meaning of these terms will help you appreciate what you are paying for and how much your auto insurance will cover in the event of an accident. You can learn more about how auto insurance coverage works in the Philippines with our step-by-step infographic to help you with your search.
Select a Reputable Insurance Provider
You should buy your auto insurance from a reputable company with a solid reputation. It should be financially stable if you don’t want to experience tension regarding claims and payouts. You can acquire all the information you require online. Visit www.insurance.gov.ph to see if the company is listed on the Insurance Commission of the Philippines website. Usually, the most well-known insurance companies are your best bets. A reputable vehicle dealership won’t propose auto insurance providers with a questionable or precarious financial position if you buy your automobile from them.
Do a thorough study if you wish to cover your car with a smaller or less well-known insurance company. Verify if the corporate website has been updated. You can also stop by their corporate headquarters if you have the time. Search for as much information as possible about the business to learn more about its history and financial performance. You may also decide to work with an impartial insurance broker. An independent insurance broker, as opposed to an insurance agent, can present you with various products from several insurance companies and help you find the right fit.
Seek recommendations from reliable sources
Word of mouth is potent, mainly when it originates from reliable sources. They can give you advice based on their personal experience dealing with auto insurance providers. You’ll at least have a sense of how these businesses treat their clients in the terrible event they are involved in an accident.
Examine your common risks
When you are operating your vehicle, you must weigh the dangers. Based on your demands and driving style, choose your insurance. It may be necessary for you to obtain coverage for natural disasters if you frequently drive in flood-prone areas. If you enjoy taking extended road trips or going off-roading with the crew every weekend, you might need to invest in something that will shield your car from harm when navigating rugged terrain. It is advised for city drivers to have insurance that will defend them against accidents, vehicle theft, or bodily injury. For this, you can obtain comprehensive auto insurance. Your required monthly payment for auto insurance will change. It will depend on the vehicle you drive, how you use it, and how it is maintained. Simply put, your automobile insurance will cost more if you use it for racing.
Compare a Minimum of Three Products
Take your top options after you’ve performed your preliminary research and comparison shopping. To make it simpler for you to check and compare, you can reduce your chances to three. You can then choose whether you require comprehensive insurance or third-party liability insurance. Check the details at all times. Yes, it can make your eyes glaze over to read the small text. However, heed our warning that you must read and comprehend the terms of your policy. Verify that the policy expresses what you and your agent have discussed. Do not be afraid to ask questions if something is unclear to you.
Car Insurance Scams You Should Know About?
Intentional Vehicle Collisions
One of the most prevalent car insurance frauds worldwide involves faked or intentional accidents. Often, con artists would entice their victims into making an early turn and crashing into an incoming con artist, or they may trap the victim in a rear-end collision. Some con artists would cooperate in deceiving drivers into believing it is safe to exit out of a parking lot or a side street when it is not, putting them at risk of a collision. To increase the claim, con artists may often add additional damage to their automobiles.
You have probably seen films on YouTube when con artists prey on unsuspecting motorists by unexpectedly approaching their car and giving the impression that they have struck them and suffered significant injuries. Without a dash cam, it is simple to be intimidated into believing it was your fault and that you should pay for the hospital and medical expenses.
Nevertheless, one of the oldest scams in the book is false hit-and-runs. Scammers are often skilled actors. They typically work in groups and can easily intimidate you into making a payment. Driving conservatively and installing a dash cam in your car will help you avoid falling for these con games. Document everything in case you are involved in an accident. Take pictures of the involved vehicles, the driver, the passengers, and even any onlookers who might be able to serve as witnesses. Never trust strangers who approach you out of the blue and offer to drive you to the nearest mechanic or auto repair business.
These auto repair companies can raise their prices arbitrarily even though most don’t sell genuine parts. Refuse offers from onlookers to refer you to a lawyer or doctor they know who can help you. Contact your car insurance provider so they can point you in the correct direction.
Planned Vehicle Thefts
Additionally, con artists will do anything to get a quick payday from their comprehensive auto insurance company. To make it appear that auto thieves left the vehicle before escaping, they will abandon their vehicles in a remote area. To make the insurance claim appear even more genuine, they may burn it or throw it into the river. They will then report it as stolen to their insurance company.
Bogus Insurance Brokers
Sure, car insurance con artists will offer your car the most affordable premiums and comprehensive insurance plans over the phone. Make sure you speak with an accredited agent of a respectable and financially stable insurance business before being persuaded by this agent’s seemingly attractive offer. Request their agent license number and the brand name of the company they represent. Verify this information on the Insurance Commission’s official website.
However, there are dishonest persons out there who would steal peoples’ premiums, even if they are licensed agents working for a respected company. Keep careful track of your insurance payments to prevent becoming one of their victims. Give your agent post dated cheques instead of cash when making payments. Your auto insurance company will contact you if there has been a missed payment, so you will know if something is wrong. Request a copy of the insurance policy at all times. Verify that everything your agent described is included and that you have read and comprehend what it contains.
Vehicle Repair Scams
If you were involved in any car accident, you should wait for instructions from your auto insurance company on where to take your automobile for repairs and who to contact. You can visit the auto mechanic you’ve used for years or your neighborhood’s other respectable auto repair facilities. However, not all unassuming, tiny auto repair firms are dodgy. Just separate the genuine and honest people from the con artists. Investigate reputable and reasonably priced auto repair shops. Consult with friends and relatives for recommendations.
Before making the repairs, request an estimate from your chosen repair business and get it in writing. You can be sure that you are not being overcharged in this manner. Verify the itemized list on the invoice and the billing statement to confirm that only genuine components were bought and used for the repairs. The presence of safety features and comprehensive insurance on your car is no longer sufficient in today’s society. These days, you also need to be on the lookout for dishonest people who might exploit you to carry out their fraudulent schemes. Always practice defensive and cautious driving. Recognize your privileges as a driver and car owner.
How Does Car Insurance Operate in the Philippines?
How Car Insurance Operates
An automobile insurance policy is a contract that states that you will pay the premiums and that the insurance company will cover any losses that are specified in the policy. Car accidents can occur no matter how defensively and cautiously you drive. You are acquiring security for yourself when you purchase auto insurance. The approach you will receive depends on the type of insurance you select, the car you drive, and how old the car is. Auto insurance providers provide different types of coverage depending on your needs and range for natural disasters. This includes hateful conduct, physical harm, property destruction, and even personal accidents.
In the Philippines, auto insurance providers can cover cars with a market value of at least 250,000. It will be up to the insurance company’s decision for automobiles older than eight years old that don’t meet this condition. Remember that an older vehicle will unquestionably cost more to insure than a new one. Selecting the best auto insurance company can be challenging if you decide to purchase one. Start as you compare several types of auto insurance to see which one best suits your requirements and price range.
Insurance Claim Submission
If you are involved in a car accident, you must first notify the police and your insurance provider. Without your insurance company’s approval, you should not engage in negotiations, admit fault, make a payment offer, or sign any documents. This safeguards you if the other party is adjudged to be at fault in court. Presenting a copy of your policy and official receipts for your insurance premium payments will allow you to claim the insurance. Include the police report affidavit, pictures of the damaged or missing parts, photos of the entire vehicle, and images of the license plate. Depending on the insurance provider, you might also need to provide a notarized attestation.
Medical certificates, prescriptions, and receipts must be submitted in original form, and copies of birth, marriage, and death certificates must also be submitted. Being safeguarded beforehand is quite comforting, especially in ambiguous circumstances. Being insured will give you the necessary piece of mind in the face of potential financial losses because there is no way to predict when it might happen. Consider these additional hints on auto insurance ideas that can help you save money if you’re prepared to get one; they might influence your ultimate choice.
Secrets to Saving Thousands on Auto Insurance
The typical client is unaware of numerous aspects of auto insurance. If you’re one of these clients, now is the moment to uncover some hidden information about auto insurance. You can save more money the more you are aware.
We’ve gathered some advice to help you get the best value for your money regarding auto insurance as a service. With these vehicle insurance tips, you may stop overspending and get good coverage.
- The most proper insurance may not necessarily be the cheapest.
What use is a cheap premium if the insurance provider takes months to resolve your claims? Don’t forget to compare rates while keeping the company’s history of timely claim settlements. Price is crucial, for sure, but so is timing.
- Claiming insurance for minimal damages is not worth your time.
If you can fix the dent on your car for a reasonable price, don’t bother filing a claim and just pay for it yourself (ideally with money from an emergency fund). When you file numerous claims, your insurance provider will become wary of continuing to do business with you, which results in increased premiums. But go ahead and submit a claim if the damage exceeds the deductible.
- Ask your insurance if they may provide fixed deductible coverage.
Fixed deductibles are a massive benefit if you decide to include this in your auto insurance coverage. Typically, deductibles are expressed as percentages, so if your automobile is expensive, your deductible would be high. However, if you request a fixed deductible, you won’t be caught off guard by significant sums if something goes wrong with your car. For instance, businesses typically charge.5% of the total amount insured, so if you had an 850,000 peso car, your deductible would be P4,250. However, if you and your insurer had agreed on a fixed deductible, you might have gotten one for a P2,000 flat. You only need to ask.
- Remember to list any accessories or changes.
Do you have any additional accessories or modifications for your car, such as a sports body kit or a front bull bar? Ensure that it is mentioned in your policy. As they are not included as standard equipment, you will have difficulty claiming them if they are damaged. Declaring these modifications could help you save thousands of pesos during the claims process, and frequently, you won’t have to pay more to get them covered. Keep the item’s receipts for your records if you need to submit claims.
- Verify your coverage for bodily injury and property damage.
Comprehensive auto insurance coverage is necessary if you want a sufficient level of protection. But if you check the coverage for bodily injury and property damage, you can save even more on your auto insurance. A P200,000 BI&PD cover is usually adequate. Other customers go as high as P500,000 or fail to verify how tall it is, which results in an easily avoidable exorbitant premium. As a result, if you want to reduce your premium, reduce the BI&PD coverage to about P200,000.
- By comparing rates online, you can find the best deals.
Save yourself the trouble of going to different insurance companies only to compare costs. Why go through all that when you can do it all online? With a few clicks, you can easily find out which provider will give you the best deal for the kind of coverage you require. To save money, time, and effort, use online comparison tools.
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