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Why car owners choose eCompareMo

Why Car Insurance is important

Vehicle owners whose units are still financed by a loan are required to get comprehensive car insurance until they can finally pay off their balance. Meanwhile, those who fully own their cars already are merely mandated by the law to get CTPL insurance, which offers barely any protection to owners.

Regardless of the age of your vehicle, the type of ownership, or any other factor in your life, it is financially prudent to make sure you’re protected all-year-round by an auto insurance that:

• Covers expenses for car repairs or replacement in case of a total loss
• Provides medical assistance coverage such as hospitalization for you and your passengers
• Expedites the repair of your car so you can get back on your feet as soon as possible
• Receive emergency medical and vehicle services such as ambulance, tow truck, and others
• Assists you in all the legal proceedings that will arise in case there are other parties involved in an accident
• Gives you other perks and benefits such as reimbursement of transportation, free hotel stay during vehicle repair, among others

More than the obvious benefits, your vehicle, and your finances, probably the best reason to get car insurance is to have peace of mind whenever you drive

When you know you are insured, you can put your focus more on the things that matter instead of worrying about your financial condition when you get in an accident.

Features of Car Insurance

To understand the big difference between CTPL and comprehensive insurance, you need to know the most basic features of a policy first.

Here are the most common features of a car insurance:

1. Bodily injury coverage

When you hit someone while you’re driving, your bodily injury coverage will take care of all the medical expenses of the person you injured.

For accidents that involve other people, this coverage will pay for the medical and hospitalization expenses, lost wages, emotional distress damage, and other costs you might accumulate along the way. Legal fees due to charges pressed against you can also be included if the aggravated party decides to push through with legal action.

2. Property Damage coverage

In case you get in a car accident and cause damage to other people’s vehicles or property, you will be financially protected if your policy includes a Property Damage cover.

This feature of a vehicle insurance will cover for the repairs of vehicles of other people, damage to other properties, and other non-human damages. Legal fees are also covered in case the owners of the affected properties decide to file a case against you.

3. Auto Personal Accident

For people outside your vehicle involved in an accident, bodily injury coverage will be your shield from financial woes. However, what will protect you and your passengers in case of an emergency?

This is where Passenger Personal Accident comes in: You and other people inside the car will receive the proper treatment without you worrying about the mounting expenses.

4. Comprehensive coverage

It’s not always your fault. For everything else beyond your control, this is where comprehensive coverage comes in

Under this, you are protected from the following incidents: malicious damage, vandalism, fire, theft, strikes, riots, civil commotion, explosion, and other non-natural events that can damage your vehicle. Damaging your own vehicle is also covered under this.

5. Acts of Nature coverage

In the Philippines, this feature is an optional coverage that comprehensive insurance policyholders can avail of.

Under this, damage to your vehicle caused by natural disasters such as flooding, typhoon, and earthquakes are covered. Although unlikely to happen in the Philippines, in other countries, the acts of nature that can be covered under by this are hailstorms, tornadoes, and wildfires.

6. Compulsory Third-Party Liability coverage

Mandated as a prerequisite by the LTO from vehicle owners registering or renewing their car registration, a CTPL insurance coverage provides death indemnity, bodily injury, and permanent disablement to third parties involved in an accident. However, this offers very limited coverage to car owners because of the low indemnity it provides to victims and there is no financial protection to the vehicle owner as well as passengers.

Additional features

Car insurance is more than just protecting your finances from the uncertainties of everyday life. There are other features that make car insurance worth getting.

Some of the most common perks you can avail of from insurers when you have comprehensive insurance coverage include: Choice of repair shop, ambulance and towing assistance, tire replacement, battery boosting, fuel delivery, and other extra services that will come in handy in case of a road mishap.

Different Types of Car Insurance Coverage

Currently, these are the types of insurance coverage you can get in the Philippines right now. They offer varying types of financial security to the policyholders so take note of their differences and the protection they offer to you:

• Compulsory Third-Party Liability (CTPL). As mentioned, this is required by the LTO upon vehicle registration. Third party refers to any person other than the driver or the passenger that the insured encounters in an accident.
• Comprehensive Car Insurance without Acts of Nature. A comprehensive car insurance without Acts of Nature covers any damage caused by vehicular accident, such as collision and overturning, as well as theft, and other malicious acts from a third party.
• Comprehensive Car Insurance with Acts of Nature. A comprehensive car insurance with Acts of Nature covers all types of accidents including the ones caused by a natural disaster such as typhoons, earthquakes, wildfires, and floods.

Furthermore, many car insurance companies also give you an option to avail add-ons, such as:

• Loss of use. Where the insurance provider reimburses the transportation costs while your vehicle is being repaired by a partner service shop
• Roadside and towing assistance. Some insurance firms offer this as a freebie
• Transportation allowance. Get your transportation costs reimbursed while your car undergoes repair

Car Insurance requirements

Regardless of the insurer you’re going to pick, almost every company requires you to do the same basic procedures. If you want to make your application much more convenient, take note of these steps.

1. Prepare the most common documents needed

Once you’ve found an affordable car insurance policy, all you need to do is submit documents that are required by your provider.

Here are some of the most common requirements and conditions when applying for a motor insurance:

• Valid driver’s license that matches the name of the owner of the vehicle to be insured
• Certificate of Registration (CR) with the name of the registered owner. In case the CR is not available, the name of the buyer in the deed of sale should be presented.
• Your vehicle’s Official Receipt, or a clear photocopy of your OR when your vehicle is still being paid through an auto loan
• Additional government issued IDs such as:
1. Philippine passport
2. SSS ID
3. GSIS e-card
4. PRC ID
5. IBP ID
6. OWWA ID
7. Senior citizen’s ID
8. Voter’s ID
9. Digitized postal ID
• Other acceptable IDs you can prepare:
1. School ID
2. Alumni ID
3. Employment ID

2. List down your vehicle’s specifications

Not all vehicles are created equal. Sometimes, even a simple change in the trim can increase or decrease your premium. If you supply the wrong information to your insurer and you get in an accident in the future, your claim will be invalidated because of mismatched details!

Here are the car details you need to supply to your insurer:

• Vehicle brand (Honda, Toyota, Mitsubishi, etc.)
• Model name (Civic, Wigo, Mirage G4)
• Model year (2015, 2016, 1999)
• Variant (Ford EcoSport 1.5 Ambiente, Honda CR-V 2.0 S CVT, Chevrolet Suburban 5.3 6-speed 4x2 LT)
• Transmission (manual, automatic, continuous variable transmission, etc.)
• Color (black, silver, gray, etc.)
• Plate number
• Usage of car (commercial or personal)
• Vehicle ownership status (owned, mortgaged, etc.)

3. Prepare your vehicle for inspection

Documents aren’t the only requirements you need to prepare when applying for a car insurance. To make sure that every information you supplied to them is truthful and accurate, they need a visual confirmation of your vehicle.

Depending on your choice of insurer, they can make you present your vehicle using the following options:

• A representative from the insurance company will personally visit your car
• You must visit an office of the insurer so they can inspect your vehicle
• You can just send them photos of your vehicle

To conduct a photo inspection of your vehicle, you need to take pictures of the following details of your car:

• Vehicle identification number (VIN); other insurers call this the chassis number
• Current odometer reading
• Engine compartment
• Front side
• Left and ride sides
• Rear side
• Interior
• Model and variant badge
• Interior, such as car seats
• Wheels and tires
• Aftermarket accessories added

Don’t forget to prepare receipts of additional parts and accessories so that the amount can be added to your car’s total insured value. But before you list down all the accessories and modifications you’ve made for your vehicles, you might want to ask your choice of insurer first if your aftermarket parts are insurable or not.

Whether your choice of insurance company allows you to merely send your car details though a series of photos or not, it is prudent to have pictures of your vehicle prior to insurance coverage. This way, you can have a reference of your car both before you insure it and in case of an accident. In addition, this also prevents insurers from being victims by fraudulent claims.

4. Submit all documents along with other requirements

Once you’ve prepared all the requirements you need, it’s time to submit them to your chosen insurance provider. However, you might want to go over everything again multiple times before submission. Remember, typographical errors can not just cost you money but also cause you headaches in the long run!

Most car insurance providers will allow you to submit your requirement in one or two of the following ways:

• Hand the requirements to the insurance company’s office personally
• Deliver it via mail
• Send photos of the requirements through email

Keep in mind that not everyone accepts requirements through email as they still prefer the physical documents for manual filing. Ask your preferred insurance provider if they accept online submission of documents.

How to get cheap car insurance

There’s no doubt that car insurance can cost you money, especially if you have multiple vehicles. However, who says that you must pay the premium they outright tell you? If you know how to work your way around high insurance payments, then you can achieve safety and peace of mind without breaking your bank. A few tips:

1. Shop around!

The most important of all. Settling for the first provider that will offer you a seemingly good deal might be the cause of your regrets later.

Since insurers set their own rates within the IC’s prescribed range, no competing company will give you the same deal. Keep in mind that as the rate changes, so do the taxes like documentary stamp tax, VAT, and local government tax. These all add up to your net premium—and not shopping around means you’re missing an opportunity to save.

2. Do your research

Currently, there are plenty of companies out there vying to give you insurance coverage. However, not everyone is equal in terms of service and reliability. After all, you’re not really saving money if you will get subpar results when you need them after an accident.

To find out which providers can deliver top-notch customer support, check reviews on Facebook, motoring forums, and other websites. Use the power of internet to your advantage to further your savings.

3. Learn how to haggle

There’s no harm in asking for a discount on your premium. When you’re doing your research on insurers, you can ask them the premium. However, don’t give in right away to their initial offer. You can try to sweet talk your way toward lower prices and don’t stop there. Ask all potential insurance firms about their lowest possible offer and say thank you.

4. Compare offers

Now that you have a list of premiums from various insurers, it’s time to do a comparison. To make a comparison, you need to look at the following details:

• Net premium rate
• Cover limit
• Policy coverage
• Deductible
• Partner repair shops nationwide
• Letter of authority (LOA) turnaround
• Customer support
• Other perks and freebies
• Company reviews
• Claiming process

When you’ve compared them, it’s much easier to pick the one that has the best value for your money without breaking your bank.

5. Get a higher cover limit

This may sound counterintuitive when it comes to saving money, but there’s a good reason it’s a nifty savings trick.

When you have a higher coverage, you don’t have to worry about mounting expenses in case you get in an accident with third parties involved. If you think that your premium will increase exponentially because of this, refer to the coverage limit chart above to know the schedule of VTPL premiums for both bodily injury and property damage. You’ll be surprised that the difference isn’t significant.

6. Bump up your deductible

Higher deductibles will mean lower premiums. If you are confident that you can financially handle a larger amount for your loss, then it’s best to raise your participation fee. This will, in turn, decrease the net premium that you have to settle before your coverage starts. This is ideal for vehicle owners who have a limited use of their cars and can safely asses that their driving environment has a low risk of accidents.

However, a word of advice before you do this: Since a deductible is something you pay before you can make a claim, make sure that you strike a balance between affordability and practicality. If you bump up your deductible too high just to get a lower premium, your expenses when you make a claim might hurt your finances more than they should.

Filing a claim

For bodily injury claims

• Prepare the following documents for submission:
1. Original copy of the medical certificate/s of the injured person/s
2. Original copy of medical prescription and receipts
3. Photocopy of PSA-certified birth certificate/s and/or marriage certificates
4. In case of death, funeral bills and receipts
5. Certificate of employment
6. Copy of the insurance policy
7. In case of a third-party injury, include the following:
• Copy of the police sketch
• Letter of claim from third parties involved
8. Photographs of the incident, especially the damaged portions of vehicles
• Call your insurance company and tell them about the incident
• Submit an incident report along with other requirements
• Wait for the insurance representative to instruct you about your claims process

In case you cannot do this because of the injuries, an authorized representative can do the said steps on your behalf.

For property damage claims

1. Prepare the following documents for submission:
• Photographs of the incident, with some of them clearly showing the car’s license plate
• Copy of the insurance policy
• Photocopy of the driver’s license of the insured
• The vehicle’s official receipt and certificate of registration
• In case of third-party damage, include the following:
• Copy of the demand letter or letter of claim from the third party
• Copy of the third party’s insurance policy
• Copy of the police report
• Copy of the third party’s driver’s license
2. Send the documents to the police and insurer immediately after the accident
3. Request for an inspection as soon as possible (If your insurance company only allows inspection through photographs, do this immediatel)
4. Wait for the total cost of repairs from your insurer
5. Get the LOA and take your car to the partner service center
6. Pay the deductible and wait for your car to be fixed

For lost or stolen vehicle

1. a. Report the incident to the police and your insurer immediately
2. b. Prepare the following documents for submission:
• Full set of vehicle keys
• Original copy of the insurance policy
• Original copy of the certificate of non-recovery
• Original copy of complaint sheet issued by the Traffic Management Group
• Original copy of the National Formal Alarm Sheet issued by the Traffic Management Group
• Letter of release
3. Wait for the insurer to contact you regarding the status of your claim procedure
4. Pay the deductible required by your insurer to get your reimbursement

For Acts of Nature claims

1. Take photos of the incident, such as your car being submerged in a flood
2. Do not start the vehicle or try to fix it by yourself
3. When it is already safe, report the incident to your insurance company
4. Prepare the following documents for submission:
• Original copy of the insurance policy
• Driver’s license
• Incident report
• Documentation such as photos, videos, etc.
• Official receipt and certificate of registration
• Original copy of barangay/municipal certification of calamity
• Police report and/or notarized affidavit
5. Wait for the insurance adjuster to contact you
6. Pay the corresponding deductible
7. Claim the letter of authority and send your car to a partner repair center (In case of total loss, you will be awarded a settlement)

Renewing your policy

Is your insurance about to expire? Don’t let a moment lapse where you are vulnerable from all the potential hazards that can destabilize your financial security.

In case your coverage is almost expiring, it’s time to renew your car insurance policy. Here are the steps on how to renew your car insurance:

1. Review your current insurance policy

When you read your insurance policy, it may seem intimidating to wade through all the legalese. However, make sure you cut through the fluff and focus on the following details:

• Policy schedule
• Limit of liability
• Vehicle’s market value
• Types of coverage and their limits
• Deductible
• Warranties
• Indemnity clauses
• Other fees

When you know this, it’s much easier to find a better deal from other insurers—or maybe even from your current insurance provider.

2. Shop around for potential replacements

Whether you’re happy or not with the service your current policy provides, there’s nothing wrong with looking at what else is out there.

By shopping around, you open yourself to more competitive rates and if not, at least you’ll know that you already have the best deal out there.

When you look around for a potential new insurer, ask the following questions:

• How much is the net premium for your new insurance?
• How long do they process the claims?
• How many auto repair shops are partnered with them?
• How convenient are they when it comes to filing a claim?
• What are the added-value services you can get when you switch?

Contact your current provider

When you already got offers from other insurers, it’s time to use this information to get maximum savings.

The first thing you have to do is to contact your current insurer and ask them if they can match the rate others offer or even beat it. Keep in mind that they will be eager to retain you as a customer, so use it to your advantage.

Renew your coverage

Whether you decide to retain your current one or you move on to another company, it’s time to renew your insurance coverage.

As for the requirements, you can submit the same documents they demand from you when you first get an insurance, with the addition of your policy that is about to lapse.

Just to reiterate, these are the most common documents you need to submit:

• Valid driver’s license that matches the name of the owner of the vehicle to be insured
• Certificate of Registration (COR) with the name of the registered owner. In case the COR is not available, the name of the buyer in the deed of sale should be presented.
• Your vehicle’s official receipt, or a clear photocopy of your OR when your vehicle is still being paid through an auto loan
• Additional government issued IDs when requested

If you’re renewing your insurance with your present provider, there’s no need to submit the said requirements. Just tell them you’re willing to renew, pay your premium, and wait for your copy of your policy. It’s that easy!

Car Insurance: Frequently Asked Questions

What is a participation fee and how much does it cost?

When you file a claim, the insurer won’t shoulder every repair cost your car needs. You will still be required to pay what is called a participation fee.

Also known as deductible, this is a minimal amount charged by your insurer whenever you make a claim to them. The primary goal of a participation fee is that the driver is partly responsible for the repair expenses. In addition, this also deters vehicle owners from making fraudulent claims.

How much is the amount you have to shoulder? For small passenger vehicles, the amount is either 0.5 percent or a minimum of P2,000, whichever is higher. Despite this, both parties can agree upon a certain amount of the participation fee, eventually affecting the car’s net premium. Higher deductibles can give you lower premiums and vice versa.

How to cancel car insurance and will I get a refund?

While you have an existing car insurance, you cancel it anytime within the coverage period. When you cancel it, you are entitled to a return of premium at a pro-rata rate unless the first and second parties agreed on a short-period rate. However, if the policyholder gets in an accident, he will not be entitled to any return of premium.

How does pro-rata rate work? Going back to Vehicle X which has a premium of P24,943.54, if he decides to cancel his coverage 89 days before his coverage lapses, he will be entitled to a return of premium of PHP 18,857.32.

However, vehicles that are still mortgaged can only cancel their insurance policy if they have secured a similar one and there will be no gap of beyond five days between the two coverages.

Can car insurance policy be transferred?

Yes. When you’re selling your vehicle and you still have an active insurance policy covering your car, you may transfer the certificate of cover from your name to the new owner of the vehicle. All you need to do is to prepare the car’s deed of sale and submit it to your insurer. Once submitted, the insurer will rename the new owner of the car as the new policyholder.

Does an older car cost more to insure?

Technically, older vehicles have a lower value due to depreciation. Long story short, depreciation is the computation of an asset’s use over time that contributes to its decrease in value. As you use your car and newer models enter the market, your car’s value declines over time.

Since a car is insured based on its current market value, owners can insure their vehicles less than the price of newer cars.

However, vintage cars whose values have been deemed more valuable are insured at a higher rate. Because of their condition, they are insurable under a more specialized type of car insurance. If you have a vintage car, ask your car insurance company if they offer a more specific type of coverage for vehicles that have appreciated over time.