How to compare car insurance quotes like a pro in the Philippines

Car insurance is a concept every car owner in the country is aware of; it is not only a legal requirement but a necessity. But the struggle of getting a car insured is on another level, from understanding the basics, shortlisting the providers, analysing the policies, obtaining & comparing the quotes, and making the final call - the process is long and tedious. However, thanks to the digital revolution, things have changed for the better. You can now check out the top insurance providers and obtain their quotes from the comfort of your home. Paying premiums and filing claims can even be done online. Today, we’ll be focusing on the car insurance quotes and their comparison in detail. This very aspect of the process is very crucial and defines the very course of your car insurance journey. Thus, making it a crucial one to understand, so bear with us and take in all the information. Let us begin …

Car insurance in the Philippines

Car insurance is a deal that a car owner signs with an insurance provider. It is a two-way deal in which the provider offers financial protection to the policyholder against third-party liability, accidents, theft, fire, etc., against a monthly premium. The level of protection you get depends on the type of policy you have signed up for. However, in this long list of coverage options, there’s one insurance cover that’s mandatory for all—CTPL insurance. The rest is up to you to pick as per your requirements and budget. You should also get quotes and do comparisons for these other policies, like comprehensive insurance, acts of God, personal accidental cover, etc. Therefore, before you compare quotes from different insurance providers, learn about car insurance and different coverage options. We’d like you to recommend our previous articles on the subject.

Car insurance quotes - Meaning, importance, & determining factors

What is a car insurance quote? You’ll pay an estimated amount for the policy and its benefits. This amount is not the same for every car owner, even for those with the same car can get different quotes. Why so? That’s because quotes are calculated by the insurance provider after considering several factors like the car, driving history, etc. Factors determining a car insurance quote A car insurance quote is determined by an insurance provider after thoroughly considering the following factors -

Car model and make
Year of manufacturing
Driving history of the applicant
Location and usage pattern
Age of the driver

Importance of comparing car insurance quotes The Philippines' car insurance market is loaded with several amazing providers. Here, we’d recommend that you check out our top 10 car insurance companies list. Coming back to the point, when you request a quote from your shortlisted set of companies (which is a recommended practice, shop around before settling), you’ll see that the quotes are mostly different. By comparing these quotes (based on price and coverage), you’ll be able to select the best policy offering you the most value for money with the best protection.

Photo from FreePress

How to procure a car insurance quote? Everyone will advise you to do market research before finalising your car insurance policy and provider, obtain quotes from different providers, and do a comparison. But no one tells you where to begin. There are two main avenues to obtain car insurance quotes in the Philippines: online car insurance platforms and insurance companies. To elaborate, several car insurance companies like AXA, FPG, or Malayan provide quotes in a short period; all you need to do is fill up an online form and press the ‘Get Quote’ button. In addition, there are several online platforms like Zen Insurance where you’ll get side-by-side comparisons of multiple providers, thus making them perfect for quick online quotes. Remember, when going for an online car insurance tool, look out for the following features -

Easy to understand interface
Real-time quotes
Side-by-side comparisons
Consultation facility

Guide to compare car insurance quotes & find the most suitable policy

Step 1: Know your needs The first step towards finding the best car insurance policy is to determine your coverage needs. While CTPL is a must, decide on comprehensive and other add-on insurance. Here, take into consideration your car’s value and your risk tolerance. Step 2: Get quotes from multiple providers We’d advise you to get at least three to four quotes from different insurance providers. You can do so in online or offline mode. Step 3: Time to compare Price will be the first basis of comparison. However, it is essential to look beyond, i.e., check parameters like deductibles, inclusions, claim process, and customer service ratings. Step 4: Check for discounts & promos The quote you get is not always the final price for the policy, as sometimes insurance providers lower the premium based on a few considerations. For instance, if the policyholder has a good driving record or bundles polices, the insurer might offer a discount. Step 5: Read the fine print The last and most important step is to go through the terms and conditions of the policy thoroughly. This will give you a clear idea about the inclusions, any fees/penalties, and thus save you from any last-minute surprises.

Avoid these mistakes when comparing quotes

Choosing policy based on price only - Do not choose the policy that is the cheapest in the list, do not make price your only motivation while making policy decisions. As cheap car insurance might cost you more in the long run, therefore, it is better to pay a little more premium and get full security (better coverage, customer service, etc). Not checking the policy inclusions & exclusions - Do not make this mistake, else you’ll regret it later. Often, it is seen that policyholders skip checking what protection the policy offers. We suggest that you read the list of policy inclusions, and here we’d also like to list down the exclusions, so that you can prepare for them (mentally and if possible financially) in advance. Here’s a table to help -

What’s usually covered?

Third-party liabilities (injury/death, property)
Accidental damage
Theft
Fire
Natural disasters/Acts of God

Add-ons to consider -

Roadside assistance
Acts of God
Towing assistance
Personal accident coverage
Loss of Use

What’s not covered?

Drinking & driving
Driving without a license
Wear & tear
Mechanical failure
Unauthorized driver

Note that Acts of God coverage is offered by some providers as part of their comprehensive insurance policy. Else, you’ll find it under the optional add-on section. Not paying attention to hidden fees/penalty - Often, it is found that insurance quotes mention processing fees, admin costs, or policy charges in between lines. Such blurred information affects the quote, and therefore, you should ask the insurer for a full breakdown.

Photo from PolicyBazaar

Tips to secure the best car insurance quote

Go for a higher deductible, if possible - The deductible is the amount a policyholder pays before the claim kicks in. If you have confidence in your driving skills and have a good driving record, we’d suggest going for a higher deductible; doing so will get you lower premiums. Bundle your insurance policies - Try bundling your policies like life, health, property, and other insurance policies with the same provider. This often leads to discounted rates from the insurer. Practice safe & clean driving - Drivers with no history of accidents and traffic violations get better rates. Here you can say, safe driving leads to cheaper premiums. Bottom line It is good, or shall we say smart, to drive with the right car insurance policy. This legal must-have will just get you LTO car registration, but it will be your safety net, offering financial protection. By learning to get insurance quotes and the right way to compare them, you’ll end up with some of the best policy options - the right price, good coverage. Never settle for the first offer; instead, look around, use online tools, know your needs and ask questions. It doesn’t matter if you are a new car owner, or looking to renew or switch your policy - being informed is the KEY. FAQs How long does it take to get car insurance in the Philippines? Usually, it takes 1 to three days to receive a car insurance policy. However, some companies offer the option to get a policy within 24 hours. Is buying car insurance online considered safe? Go for it. Just make sure the insurance provider is genuine and licensed by the Insurance Commission. By any chance, can I negotiate the insurance premium? Yes. Often insurance providers are open to negotiation, and it might work if you are a good driver with a clean driving record or are bundling policies. What factors affect my car insurance premium? Details like car model and make, driving history, location, age, etc, play a big role in deciding your insurance quote. When should I compare car insurance quotes? While getting car insurance for your new car, and next, while renewing your policy or switching your car insurance provider.