First, you struggled to select the perfect car, then a suitable insurance provider, and when you thought all was done and it was time to relax, we are here to break your heart. You see, car ownership is an ongoing process, and you have to keep everything updated and in order. The same goes for a car insurance policy, which plays a crucial role in protecting you, your car, and your passengers.
Today, we’ll be discussing the steps to take after obtaining a car insurance policy, as what you do after getting insurance is just as important. This guide will help you stay organised and make the most of your insurance policy.
So, without any delay, let us begin …
What to do after getting your insurance policy: A step-by-step guide
Step 1: Review the policy
The first thing to do after receiving the policy is to read the fine print. This step is crucial and provides multiple benefits, including understanding policy inclusions & exclusions, renewal/expiry dates, and verifying personal and vehicle details. In case of any discrepancy, contact your insurer immediately.
Also Read: Car insurance endorsements simplified: A guide to smarter coverage
Step 2: Safe storage
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Physical/hard copy storage |
Digital copy storage |
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Note that your car insurance policy is as essential as your vehicle’s OR/CR or your driver’s license. So, make sure to keep it with utmost care. Here are a few suggestions -
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These days, insurers are also offering e-policy to their clients, wherein the insurance document is sent via email. Once you receive this soft copy, make sure to -
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Step 3: Mark important dates
By essential dates, we mean the premium due date and policy expiry date. Starting with the former, i.e., the premium due date. Make it a point to mark the dates on your calendar or set reminders on your phone for the same. This will come in handy when you are on a monthly payment plan, as missing payments can cause the policy to lapse. Furthermore, you can also opt for an auto-debit setup from a bank or credit card for a hassle-free payment.
Photo from FreepikRegarding the policy expiry date, most car insurance policies run for a year. To avoid missing renewal, it's advisable to set a reminder for the policy's end date. Note that early policy renewal often results in policyholders receiving loyalty discounts.
Also Read: How to check your car insurance expiry date online and offline
Step 4. Understand the claim process
Your insurance policy is of no use if you do not know how the claim process works. So, after getting the policy, sit with your agent or read the guide (online or offline) provided by the insurer on the claim process. Familiarise yourself with the required documents, the necessary form to complete, and the timeline for notifying the insurer about the incident. You can also check our guides mentioned below.
Also Read: Don't panic after an accident — Here's how to file a comprehensive claim
Also Read: CTPL claim process explained: What Filipino drivers need to know
Step 5: Save emergency contact information
It is crucial to save essential insurance-related contacts in your phone, such as the provider’s hotline, 24/7 assistance number, and roadside assistance provider number. While the former allows you to inform the insurer about the accident or unfortunate event as soon as possible, the latter provides help when needed.
Step 6: Link the insurance policy with the LTO records
It is a known fact that you can only register your vehicle at the LTO after securing CTPL insurance. Therefore, make sure the details of your CTPL policy are reflected in the LTO records. Also, set a reminder to renew the CTPL policy just before the LTO registration renewal, which is required annually.
Step 7: Learn about the No-Claim Bonus (NCB)
What’s a No Claim Bonus? It is a reward in the form of a discount offered by the insurer for not making any claims during the policy period. To benefit from these discounts, which range from 10% to 40% in some cases, avoid filing small claims that you can handle personally.
Step 8: Maintain proper vehicle documentation
If you want to file a claim, renew your policy or switch your provider, you need to submit a few essential documents. Usually, the list includes the OR/CR, driver’s license, insurance copy, etc. Also, make it a point to keep a record of all the repair receipts, as it might help in the claim process.
Step 9. Educate yourself on road safety & rights as a policyholder
Did you know that having a good driving history can lower your premium? Therefore, it is recommended to drive cautiously and learn about traffic rules, regulations and signs. This will not only prevent accidents but also help you maintain a clean claim record and get NCB benefits.
Also, get knowledge about handling car insurance endorsements, disputes, and the timely release of benefits.
Photo from FreepikStep 10. Timely update your policy
If there has been any change in personal details or the insured vehicle within the past year, you must inform the insurer.
For instance, if your address or contact details have changed, please inform the insurer and update the details accordingly. This will ensure you receive renewal reminders, bills, and other vital communications.
Also, if the insured vehicle has undergone any modifications, such as the installation of a kit, an advanced audio system, an engine upgrade, a new tint, or a new safety system, please inform the insurer about these changes. This ensures that the latest additions are covered and that changes in premiums are implemented promptly.
Step 11. Compare rates before renewal
When approaching policy renewal time, start by comparing quotes. Check if your insurance provider offers loyalty discounts or a better deal for continuing coverage. Also, compare quotes from at least three to four providers and go with the one offering the best balance of coverage and cost.
Step 12. Maximise your savings
Renewal time is the best time for saving money on insurance. This can be done by bundling insurance policies, such as car, home, and life insurance. Note: consolidating protection saves money.
Step 13: Learn the digital way
Many insurance providers are going digital with dedicated online platforms and mobile apps for customers. These platforms allow policyholders to not only view policy details but also file claims and pay premiums. If your provider offers such services, consider taking advantage of them.
Photo from ShutterstockStep 14: Plan for emergencies
It is a good idea to plan for an unfortunate event. This can be done by stocking your glove compartment with essentials like an insurance policy, emergency contact details, and steps to follow post-emergency, like accidents and natural disasters.
Bottom line
Getting car insurance is the first step towards a responsible car ownership journey, as there are many other aspects to consider. In short, you will receive a complete to-do list after the insurer hands you the insurance papers in the Philippines. By checking all these boxes, you'll work in your favour and make the most out of your policy and the premium you paid.
Don’t worry, it is not a tedious list. It includes basic tasks like storing policies safely in both hardcopy and soft copy, tracking renewal dates, and learning about No Claim Bonuses. Taking these proactive steps would ensure that your insurance policy stands by you when you need it most, relieving you of all the financial stress.
Remember, in the Philippines, car insurance is both a necessity and a safety net that helps you stand up again after an accident. So, drive responsibly, keep the documents safe, and stay informed.
Also Read: Step-by-step guide to renewing your car insurance in the Philippines
FAQs
Q1. Is it necessary to keep the car insurance policy safe?
Ans. Absolutely yes. Your car insurance policy serves as proof of coverage and is required by the LTO & authorities. Furthermore, having a policy in hand speeds up the claim process.
Q2. What are the consequences of losing my insurance papers?
Ans. Losing your insurance papers can hamper your coverage, as it could lead to confusion about essential details like the scope of coverage, premium payments, and renewal dates.
Q3. Can I request a duplicate policy from my insurer?
Ans. Yes, if you have misplaced your original policy papers, you can request a duplicate copy. However, you might incur a processing fee.
Q4. How should I keep my insurance policy papers and the e-policy safe?
Ans. Make several copies of the policy's hardcopy, and keep one copy in the glove compartment and another at home with other essential documents. As for the e-policy, store a scanned version in cloud storage.
Q5. What to do if I lose my car insurance policy?
Ans. If you lose your insurance papers, we’d recommend contacting your insurance provider as soon as possible and asking for a duplicate copy.
Q6. Is it possible to keep only the digital copy of the insurance documents?
Ans. No. You see, while digital copy is valid, LTO and insurers often require a physical copy of the insurance document.
Q7. When should I get my insurance policy renewed?
Ans. This should be done before the current insurance policy expires. Try renewing in a way that there is no coverage gap and no overlapping of the policies.
Q8. How to renew a car insurance policy?
Ans. You can get your insurance policy renewed by contacting your agent or insurance provider. It can be done both online and offline.
Q9. What are the consequences of not renewing a car insurance policy on time?
Ans. Forgetting to renew the policy will leave you unprotected due to the lapse of coverage. In some cases, you may even lose the No Claim Bonus benefit.
Q10. How long does it take for an insurance claim application to get processed?
Ans. Insurance providers may take a few weeks to months to process a claim application, depending on the complexity of the case and completeness of the documentation.
Q11. What are the initial steps of filing an insurance claim?
Ans. Make sure to inform your insurer immediately after the incident or as soon as possible, and gather all the essential documents like the vehicle OR/CR, a valid ID, police report, and photos of the damage.
Q12. Which one is essential - CTPL or comprehensive insurance?
Ans. While CTPL insurance is mandatory with limited coverage, comprehensive insurance is highly recommended for its broad coverage. Thus, making both essential for a Filipino car owner.
Q13. What coverage does CTPL or comprehensive insurance offer?
Ans. CTPL insurance covers you against third-party bodily injury or death. Comprehensive insurance provides financial protection against various risks, including theft, accidental damage, collision, fire, flood, and vandalism.
Q14. Can my car insurance policy be transferred to another car?
Ans. No, you cannot transfer your existing car insurance policy to a new vehicle. A policy is tied to the vehicle, and when you buy a new car, you must purchase a new policy.
Q15. What is a No-Claim Bonus (NCB) and how can I get it?
Ans. No Claim Bonus is a discount on the premium that you get to enjoy when you haven’t filed any claims. You can enjoy it by avoiding the hassle of filing small claims.
Q16. Can I switch car insurance companies before renewal?
Ans. You can switch insurers before renewal; however, make sure to inform your insurer and cancel the current policy.
Q17. Is there any fee for switching car insurers?
Ans. Some insurance providers may charge you a cancellation fee.
Q18. Whom shall I contact after an accident?
Ans. After an accident, you should contact the local police authorities and your insurance provider or agent.
Q19. Does my car insurance policy cover natural disasters?
Ans. Yes, but only if your car insurance policy includes Acts of God coverage. Some insurance providers offer it as part of comprehensive insurance, while others offer it as an add-on.
Q20. How much does car insurance cost in the Philippines?
Ans. CTPL car insurance costs between PHP 300 and PHP 1,500 annually, while comprehensive insurance ranges between PHP 10,000 and PHP 100,000+ annually.
Also Read: Travel with peace of mind: Car insurance add-ons for road trips in the Philippines
