A car owner in the Philippines needs to remember and/or do certain things without fail, including getting a car insurance policy that fulfils their requirements and fits the budget, getting a driving licence, registering the vehicle, renewing the policy before it expires, or switching to a new insurance provider in case of dissatisfaction.
While we have already discussed in detail the process of switching to a new insurance provider, it's time to learn how to renew your existing policy if you want to continue to enjoy the benefits of the current policy in the future.
However, before going forward with the renewal process, there are a few things to check about your current policy, including -
- Experience with customer service - Try to remember your encounter with the customer service agent, check whether your doubts and queries were resolved, the time taken for the issue to be resolved, etc. If the experience was positive, consider renewing; otherwise, give it some thought.
- Premium cost - Check if your current insurer has a history of increasing premiums. If that is happening without proper justification—no additional benefits or improvements in coverage —it is a red flag.
- Coverage option - Before renewing your policy, have a thorough look at the coverage options your current provider offers. Ensure that all your insurance needs are met; if not, you may need to reconsider your renewal.
- Claim settlement - One of the most critical aspects to consider when renewing the policy is the experience with the claim settlement process. If you have experienced any delays or disputes in the past while filing a claim, it is a warning sign worth considering.
If you have had no bad experience with the claim process, customer service, premium cost, or coverage, then congratulations, you have associated with the right insurance provider and can easily proceed with the renewal process. However, if that’s not the case for you, we suggest considering a switch (learn more about it in our previously covered blog).
Remember, only with the right insurance provider can you drive with peace of mind, knowing there’s someone out there ready to support you during an accident or unforeseen circumstances.
Car insurance renewal
Now that you have thoroughly analysed your current car insurance policy and are fully satisfied with the findings, it’s time to learn about renewing the policy. Now, the process of renewing a car insurance policy may seem daunting, but with the right guidance and understanding of its importance, things become simple and manageable.
In this article, our goal is to inform you about the following: the benefits of renewing your car insurance policy, when and how to restore, the documents required, and more.
So, without any delay, let’s begin…
Need for renewing a car insurance policy
Do you have to renew your car insurance policy? Is it a must, or can it be ignored? If such questions are popping into your mind, then having car insurance is a must for a Filipino car owner - it is not just recommended, but it is a legal necessity. There shall be no day when your vehicle is uninsured; it must have the bare minimum coverage, which includes third-party liability, and the rest is up to the owner.
So, while Compulsory Third Party Liability (CTPL) insurance is mandatory, you can’t skip its renewal as well. What it covers is the liability of the vehicle owner to third parties in the event of an accident. Meaning the policyholder is financially protected against claims arising from the injury or death of a third party.
While many policyholders are comfortable with this minimum coverage, a few smart ones opt for Comprehensive Insurance. And those who have it know the benefits and the wide array of coverage it offers to the insured vehicle (such as protection against theft, floods, damage, etc.) will surely consider a policy renewal.
Photo from FreepikWhen to renew a car insurance policy
Now that you understand the need for car insurance policy renewal, it’s time to learn about the renewal timeline. In the Philippines, a car insurance policy typically remains active for a specific duration, after which it expires and requires timely renewal.
Things to remember -
- Most car insurance policies in the Philippines are valid for one year; therefore, it is essential to keep track of the expiry date, as the coverage will lapse.
- Regularly review policy documents for the exact expiration date.
- Usually, insurance providers send renewal reminders to the policyholders at the registered address or number; make sure to update your contact information in case of any changes.
Consequences of driving with an expired insurance
If you are a Filipino car driver, you should be aware that driving with an expired license is strictly prohibited and has several consequences. For example, you can be subjected to fines, potential vehicle impoundment, difficulty in claiming insurance benefits, and loss of coverage. Therefore, make sure to renew your policy on time.
Did you know that most insurance companies in the Philippines offer a grace period to the policyholder after the expiry of the policy - a window for renewal. It is like a second chance given by the insurance provider to its clients. If the policy is not renewed, it results in a loss of No Claim Bonus (NCB) and higher premiums in the future.
Bottom line, renew your car insurance policy on time, i.e., before it expires. Don’t wait for the grace period, as only a few offer such a facility.
Documents required for car insurance renewal
Policyholders whose car insurance is about to expire and they wish to renew it, here are a few key documents that are required. Preparing the paperwork will streamline the process and ensure a timely renewal. You’ll mostly need the following -
- Vehicle’s Certificate of Registration (CR) - It serves as proof that the car is LTO-registered and contains several key details about the vehicle.
- Vehicle’s Original Receipt (OR) - It acts as proof that you have paid the required vehicle registration fees.
- Valid government-issued ID - This will help identify policyholders' details and can be a driver’s license, passport, or any other government-issued ID.
- A copy of the current insurance policy documents.
Please verify with your insurance provider for any additional requirements or documents needed for renewal. Also, it is advisable to keep digital copies of the documents for easy access.
Photo from BusinessStandardProcess to renew car insurance
We have broken down the entire car insurance renewal process into simple, manageable steps. Start following these steps as you approach the renewal date.
Step 1. Evaluate your policy and coverage
When we say evaluate, you need to do the following -
- Read your policy and check for deal-breakers.
- Ask the insurer about any changes in the policy terms & conditions and how it will affect your future coverage or claim.
- Review the existing coverage to determine if you are satisfied or if there’s room for improvement.
- Ask for add-ons inclusion or exclusion, as per future requirements.
Step 2. Prepare the renewal budget
Here, you need to consider the premium costs, deductibles, and other additional fees associated with the car insurance policy. Also, be sure to compare quotes from different providers to ensure you're getting the best coverage at the best price.
Note that it is time to make alterations to the deductible (the amount you pay before the claim settlement kicks in).
Step 3. Provide the required information
Contact your car insurance provider or agent to initiate the renewal process. Here you’ll be asked to provide key details about the vehicle (make, model, year, age, and claim history) and yourself (contact details, address, etc). It is the perfect time to discuss any modifications or changes done to the car or to your lifestyle that might impact the coverage.
Step 4. Make payment
Time to seal the deal, make the required payment for car insurance renewal. Insurance providers these days offer multiple payment options, so inquire and choose the one that suits you. While making the payment, inquire about the renewal policy and its dispatch.
Step 5. Go through the renewed policy
Upon receiving the renewed insurance policy, please read it thoroughly. Check all the details, coverage, inclusions, exclusions, and terms and conditions. In case of any error or doubt, do contact the insurer.
Bottom line
To stay protected on the roads, it is essential to obtain a car insurance policy. However, that’s not all; you’ll also need to remember to renew it on time. In this article, we have discussed all the key aspects of car insurance policy renewal, including the need, required documents, process, and consequences. However, before renewing your current policy, it is suggested to compare insurance providers based on coverage, premium, and customer service. Doing so will ensure that you have the best coverage in hand.
Remember, renewing a car insurance policy is simple, given that you have the correct information and the right guidance. Simply follow the steps we have outlined, and you're good to go.
FAQs
Q1.Is it essential to renew car insurance in the Philippines?
Ans. Yes, renewing car insurance is essential for legal compliance and financial protection against unforeseen events.
Q2. What is the bare minimum legal requirement of car insurance in the Philippines?
Ans. Every Filipino car driver is required to have Compulsory Third-Party Liability (CTPL) insurance. It covers damages to the third party (injury/death) in the event of an accident involving the insured vehicle.
Q3. How long does a standard car insurance policy remain active?
Ans. Usually, a car insurance policy remains active for a year, after which it will expire (if not renewed).
Q4. What documents are required for car insurance renewal?
Ans. For renewing the document, you’ll need the following: vehicle’s OR and CR, valid ID, and current insurance policy.
Q5. Is it possible to initiate the policy renewal process online?
Ans. Absolutely yes. Many insurance providers offer an online renewal facility, making the process super convenient.
Q6. What are the consequences of a lapsed insurance policy?
Ans. If the policy lapses, you’ll face fines, have no coverage, and your car registration may also be subject to restrictions.
Q7. When is the best time to renew car insurance?
Ans. It is recommended to renew the policy at least one month before it expires.
Also Read: Never miss a payment: Most convenient ways to pay for car insurance in the Philippines
