How To Lower Your Car Insurance Premium In The Philippines

Are you wondering how you can reduce the price of your car insurance premium? There are fail-safe ways to do that.

In the Philippines, there is one type of insurance that is mandatory, and that is Compulsory Third Party Insurance. CTPL provides coverage for the other party in the event that your vehicle was involved in an accident.

How to reduce Car Insurance premium

According to the Insurance Code of the Philippines, any type of motor vehicle, be they old or new, much have CTPL insurance before they can register with the Land Transportation Office.

So, basically, this is a car insurance premium you can’t avoid getting.

The average cost of CTPL is around ₱410, exclusive of a value-added tax, authentication fees, and documentary stamps.

How to save money on comprehensive insurance

If you really want to pay the bare minimum in car insurance premium, you could just get CTPL. But if you really want to get your money’s worth out of your car insurance policy, you should invest in insuring you and your vehicle from more than just third-party liability.

After all, you can find insurance providers in the Philippines that provide cheap comprehensive car insurance. All you’ve got to do is compare online.

Comprehensive insurance provides coverage for you (and often your passengers) in cases of accidents, loss, and damages caused by third parties.

Depending on the insurance provider and the type of auto insurance you choose, you can even get insured against Acts of Nature (also known as Acts of God) or accidents caused by natural disasters.

But that’s an additional coverage that will add to the premium you will pay. So, the first rule of lowering your premiums would be to determine if you need Acts of Nature coverage.

How to lower your car insurance premium

Here are a few other tips as to how you can make your comprehensive insurance go down:

1. Opt to pay annually, not monthly

While it may be easier in the short run to pay smaller amounts monthly for your comprehensive insurance premium rather than one big lump sum—paying annually is cheaper in the long run. The shorter the payment terms, the lower the end sum of your policy payments will be.

(Read : The Ultimate Guide To Getting Car Insurance In The Philippines)

2. Consider the age of your vehicle

One of the biggest factors that affect your car insurance premium costs is its age. If older cars do breakdown, they are often harder to repair and source parts for. Also, you’ll need to pay depreciation fees for parts.

However, it is also not the best idea to buy the shiniest and newest models straight of the car lot. These cars will have a high Fair Market Value (FMV) which will increase the premium you will have to pay.

Fair market value is computed according to your cars model, type, make, and series. In case you total your car, your insurance provider will have to pay the approximated FMV of your vehicle, so they will give you a higher premium.

3. Agree to a high deductible

When you use your car insurance policy to cover the cost of your car repairs, there will also be an amount, agreed on beforehand that you will pay out of your pocket. The amount that will come from your pocket is called the deductible or participation fee.

In general, the higher the deductible you agree to, the lower the insurance premium will be.

(Read : How Different Car Insurance Companies Handle Claims)

4. Use a car insurance comparison tool

There are many different car insurance providers out there and it can be tricky to go through the offerings of each and every one of them. Luckily there are car insurance comparison portals out there that can help you find the best provider that will suit your needs and budget.