Top driving habits car insurance companies prefer

Car insurance - A legal requirement & a responsible act

In the Philippines, the LTO requires every car owner to have insurance, i.e., Compulsory Third Party Liability (CTPL). This one is required for all motor vehicle registrations, and it provides basic protection, including third-party coverage against injury and death. It doesn’t cover damages to insured vehicles, and that’s where comprehensive insurance comes in.

Two major types of car insurance in the Philippines -

Compulsory Third Party Liability (CTPL) insurance - Covers injuries/death of third parties in an accident involving the insured vehicle.

Comprehensive insurance - Dedicated to the insured vehicle, it protects against theft, fire, vandalism, damage due to collision & natural disaster.

In addition to insurance, Filipino car owners also need to understand the importance/of good driving habits and the positive impact they will bring them, in terms of insurance and otherwise as well. Continue reading and find out all about it.

Good driving habits - Why does it matter?

Did you know that insurers take into consideration ‘how you drive’ before calculating the premium? By doing so, they assess how risky a client you’ll be. So, if you demonstrate a responsible and safe driving practice, you’ll be in their good books, which will bring you benefits like -

• Lower premium
• High chances of claim approval
• A clean and favourable insurance history
• Minimal physical damage to the car
• No/minimal administrative headache
• Legal protection, in case of an accident

Good driving habits will translate into fewer accidents, which in turn will result in fewer claims and lower insurance costs.

Driving habits preferred by insurance companies

There are certain driving habits that insurance providers look for in a client's profile. These include adhering to the speed limit, avoiding traffic violations, maintaining the vehicle regularly, and having updated documentation. These habits demonstrate responsibility and safety, which insurers highly value.

• Adhering to the speed limit helps the driver avoid any speeding-related mishaps.
• No traffic violation of any sort means a clean driving record and a responsible driver behind the wheel.
• Regular maintenance of the vehicle ensures fewer breakdowns and longevity.
• Updated and complete documentation related to the car, including updated OR/CR, license, and insurance details

Recommended driving habits for every Filipino driver

While the insurers highly value the above-mentioned driving habits, here are a few more essential habits that shall be adopted for a safe driving experience. The list includes,

• Practising defensive driving will help you anticipate potential dangers and hazards beforehand.
• Avoid any distractions while driving, such as eating or using a phone.
• Use turn signals when needed; this will help prevent collisions and ensure road safety.
• Always maintain a safe distance from the vehicle ahead; doing so will help prevent a rear-end collision.

Driving habits to avoid

Now that you know what insurers love, let's take a look at the driving habits that should be altogether avoided - the big no-no. Furthermore, these actions can result in fines, penalties, legal troubles, and high premiums. The list includes speeding, reckless overtaking, running red lights, disobeying traffic lights, using mobile phones while driving, and driving under the influence.

• Speeding and reckless overtaking can result in road accidents and collisions. Further, these two are the top causes of road-related deaths.
• Running red lights and not obeying traffic lights are major violations under MMDA rules.
• Using mobile phones while driving is a clear violation of the Anti-Distracted Driving Act.
• Driving under the influence can result in the cancellation of your insurance policy.

Also Read: What to do after a car accident: A guide for insured drivers

Driving records and car insurance premiums

Before deciding the premium for an applicant, car insurance companies review the applicant's driving history over the past few years. Here, they look for violations, tickets, accidental claims, and license suspensions.

Furthermore, there are a few innovative ways insurers use to evaluate an applicant's driving behaviours and determine the premium. This includes the use of technologies such as telematics (GPS devices that monitor driving patterns), dashcams (which analyse footage), and checking LTO and MMDA databases for violations. These tools offer a comprehensive view of your driving habits, enabling insurers to make informed decisions about your premium.

In the case of a clean driving record, providers consider the applicant a safe bet and, as a token of appreciation, lower the premium.

Wanna know the secret to a clean driving record? Here are a few tips -

• Take a refresher driving course.
• Follow traffic laws diligently.
• Clear all traffic fines immediately.
• Avoid being a repeat offender.

How to enhance your driving skills?

Driving is one of the essential skills we believe everyone should learn; however, it should be done the right way. How? Let’s find out -

• Get enrolled in a certified driving school.
• Make sure to read and watch driving-related educational content from LTO and MMDA.
• If possible, use driving simulators to practice real-world scenarios.
• Take feedback from an experienced driver.
• Do regular self-assessments.

Common myths about driving and insurance

While there are many, let’s discuss a few common misconceptions related to driving and insurance.

Myth 1: Slow driving equals safe driving.
Reality: This is not always the case, especially when it disrupts the traffic flow.

Myth 2: All damages are covered by insurance.
Reality: It depends on the coverage; while CTPL only covers third-party damage (including injury and death), comprehensive coverage offers wider protection.

Myth 3: After getting insurance, the car can be driven as desired.
Reality: Not at all. Bad driving habits, such as speeding, breaking traffic rules, and driving under the influence, are not recommended.

Also Read: EV ownership and car insurance: A complete breakdown

Bottom line

Driving a car or any motor vehicle comes with a lot of responsibility. Once behind the wheel, you need to take care of yourself, your passengers, and others on the road. Yes, car insurance is there to protect you against any financial liability due to a collision or accident; however, it’s better to be safe than to raise a claim and damage your driving history. In this article, we have tried to gather all the information about good driving behaviour and the benefits it offers.

So, be safe and drive safely.

FAQs

Q1. What are some of the recommended car insurance providers in the Philippines?
Ans. Some of the top choices include AXA Philippines, Malayan Insurance, FPG Insurance, and Pioneer Insurance.

Q2. What factors affect the car insurance premium?
Ans. Several factors influence car insurance premiums, including vehicle type & value, driver’s age, location, driving history, and frequency of car usage.

Q3. How to file a claim in the Philippines?
Ans. To file a claim, you need to first report the incident to the police, followed by notifying the insurer and getting the necessary documents ready, like OR/CR, police report, driver’s license, etc. The insurer will then send an adjuster for inspection, after which a decision about your claim will be made.

Q4. What are the essential traffic-related rules and regulations a Filipino driver should be aware of?
Ans. Every Filipino driver should educate themselves about the following driving rules and regulations - The Land Transportation and Traffic Code (R.A. 4136), Anti-Distracted Driving Act (R.A. 10913), and the MMDA number coding scheme.

Q5. What are some of the modern tools I can install to improve my driving?
Ans. Here are some options - navigation apps, dashcams, and driving monitors.

Q6. Is car insurance required, or can I drive without it?
Ans. Yes, every car owner is required to get CTPL insurance. Not doing so violates LTO regulations.

Q7. What is the difference between CTPL and comprehensive insurance?
Ans. CTPL insurance is mandatory and covers third-party injury/death, while comprehensive insurance is optional and highly recommended; it offers a wide range of protection.

Q8. Do car insurance providers check applicants' past traffic violations?
Ans. Yes, car insurance providers analyse applicants' traffic records by going through their LTO/MMDA records.

Q9. How do I get lower insurance premium rates?
Ans. You can reduce your premium by maintaining a clean driving record, driving responsibly, and avoiding claims.

Q10. Is it beneficial to get a dashcam installed in my car?
Ans. Yes, insurance providers keep clients with dashcam in their good books. It will support claims and help lower premiums.

Also Read: Complete guide to modified car insurance in the Philippines