Car Insurance deductibles – What are they?
It’s that time once again for us here at iChoose.ph to give a little bit of education of tip to you our valued customers.
There are a number of technical terms that you will encounter when buying your car insurance and one thing that we are going to talk about is Car Insurance Deductibles.
Deductibles or participation is the amount of money that the client needs to pay before an insurer settles the claims. It has to be made clear to the client and it must be stipulated in the insurance policy.
Car Insurance deductibles are charged by the insurer to the client per every event/ incident. For example, if the client smashed the front bumper and damaged the headlight & hood, that will be treated as one event and therefore one deductible will be charged. If the client tells the insurer that he has broken the tail light, the insurer will tell him to pay another deductible because that would have happened on another incident.
In the Philippines, most privately used cars have 2 types of deductibles. They are:
PC – Private Cars. Though we are talking about privately used cars, PC classifications in terms of car insurance ratings and deductibles refer to cars with sedan or hatch body type. The deductible is .5% of the sum insured(value of the car)or P2,000 whichever is higher. A Toyota Corolla worth P850,000.00 owner will be asked to pay P4,250(.5% f P850,000) as it is higher than P2,000.00
CV – Commercial Vehicle. The vehicles under this classifications are SUVs, vans, wagons, and AUVs. A deductible is 1% of the sum insured or P3,000 whichever is higher.
Nowadays, with a very competitive market, some insurers offer flat deductible of P2,000.00 for PC type cars and P3,000.00 for CV type cars. Some good car insurance agencies and brokers with good relationships with the insurers will have these benefits passed on to their clients. For savvy consumers, it is very smart and essential to ask this question to as insurance coverages may differ from one to the other.
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