5 Things You Need to Know About Car Insurance in the Philippines
Given the number of people who purchase a vehicle in the Philippines, it is time that we look closer to car insurance policies. Car insurance over the years evolved to become a necessity. The primary purpose of a car insurance policy is to provide peace of mind, especially when you get in some sort of accident or mishap on the road. There are many car insurance companies today offering almost the same type of services. However, you have to be patient when looking into the details. To avoid crucial mistakes, here are some things you need to know about car insurance.
Lowest Rates Don’t Always Make the Best Insurance
The purpose of having an insurance policy is for you to have lesser expenses in case you get into trouble. As a rule of thumb, don’t always settle for the lowest rate in the market. There’s so much more to look into other than the price. Does the company have a good reputation when it comes to claims? Perhaps, it takes months to get what you need from your insurance company?
Also, try to see what is included. Will you settle for something cheap if it doesn’t have the coverage that could come in handy eventually? Always ask if the insurance company is offering the best bang for your buck.
Assess What You Really Need
Consumers are becoming smarter and smarter these days that they don’t want to overspend on anything. When getting car insurance, it is also just as bad to overlook the important things.
For instance, it is a common scenario among car owners that they purchase a car insurance policy forgetting to declare the accessories and modifications made in their car. Though this could potentially raise your premium a bit, this could save you the trouble during the claiming process.
Another good example of why you need to assess what you really need is the fact that there are certain calamities that are becoming common in the Philippines such as floods. If you are living in a flood-prone area, you may want to ask your insurance company if they provide such protection.
Are there any deductibles?
Discounts are important since this could save car owners thousands of pesos. Deductibles come in either a fixed or a percentage basis. To give you an idea, if you own for instance a P1 million vehicle, a fixed deductible will most give a flat rate of around P2,000. On the other hand, if the company offers a percentage deductible, it could be at a 0.5% rate which is equivalent to P5,000.
Compare different insurance companies
It is imperative to know what do other companies offer on the table. Are they offering the exact same insurance for less? Perhaps, you could be getting more for a small additional price? And of course, you should also look closely at the testimonials of other customers as well.
By comparing different quotes online of at least three companies, it is possible to get the best coverage and price. Fortunately, you have the Internet where you could save time and effort when it comes to comparing the different insurance companies.
Always have a budget for small repairs
Why do you need to have a budget for small repairs when you could always make a claim? Keep in mind that an insurance company will be looking at your track record. Claims that you made will make them hesitate to deal with you again. Most likely, claims will increase your premium the next time around. It is highly suggested to have a budget for these types of repairs.
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