Car Insurance Mistakes to Avoid

Driving in Metro Manila can be something of a challenge. There are huge traffic jams and reckless drivers, not to mention ever-changing weather patterns. Before a car owner can even operate their car, they already acquire car insurance---the Compulsory Third-Party Liability cover as mandated by the government.

Those seeking to protect their vehicle further will seek better coverage. When selecting car insurance coverage, it is important to know what options are available to you. But to avoid any further car insurance mistakes, here are a few things you should take note of.

Choosing price over coverage

The cheapest is not always the best. The lowest rates may not mean that you've gotten the best possible coverage for your car, or the purposes you use it for. For instance, don’t consider the lowest-priced if you think you’re prone to accidents or you use your car most of the time.

When comparing car insurance policies from different companies, be sure to look at the details of the coverage so you know exactly what you're getting for your money. It's easy to say that you'll just drive carefully to justify underinsuring a vehicle. Opting for less coverage to keep your premium payment low puts your investment in a car at risk, especially if your car happens to be a higher-end model.

You'll spend about 2.25 percent of your car's fair market value every year for the first three years you own the car in any case. That's pricey, yes, but making sure that your car is properly protected is better than the alternative.

Thinking all insurance covers are equal

All car insurance companies offer the same general services of insuring your car, but they are not identical. This may stem from the fact that some insurance covers are termed as "comprehensive", or "full coverage", but their covers are actually fairly limited.

This results in the idea that just because you're paying, you've got everything you need to protect your car. This isn't the case. There are insurance covers that separately protect your car against accidents, theft, or bad weather conditions.

If you want a better idea of how these covers protect your car, talk to your insurance provider. They can help you fill the gaps when it comes to your insurance purchase.

Not understanding everything

Asking your potential provider’s agent will let you know what exactly they are offering. Knowing what you’re paying for help so you're not paying double on covers that can be compressed into others.

Reach out to your provider early on in your decision-making process to have them explain how much coverage you need, along with any other benefits your coverage might provide, such as roadside assistance, and the like.

You risk getting unpleasantly surprised by the cost of repairs that your insurance doesn't cover by not making sure you understand everything that has to do with your policy.

Not shopping around

This mistake is commonly made because you may not feel like it. Because of the changing natures and prices of insurance covers, it's ideal that if you're renewing your insurance that you do a little research on providers and their prices.

Doing research doesn't necessarily mean visiting each provider, it's as simple as visiting online comparison websites and checking for the latest competitive rates. Carriers can charge very different rates to insure the same driver, making it ideal to get a few different quotes in order to get the best coverage and value for your vehicle.

Lying on your application

There are times when people may sincerely forget to put down information on their insurance applications. These could be honest mistakes, or it could also be an attempt to game the system. By not revealing any accidents, DUIs, and traffic violations on your application, you might get a good price on an insurance quote, but all that could easily come undone if you have to make a claim[1].

Your car insurance cover rates will depend on your facts. Make sure to provide your insurance company the most accurate information such as who really drives your car, where it is used, aside from other important details.

Final Thoughts

A car insurance is an important investment, making sure that you've got the right amount of coverage is important, but it's also important to make sure that you've got all the right information at your fingertips. These steps can help you to make an informed decision when it comes to your purchase, and prevent any car insurance mistakes down the line.

Source:

• [1] 9 tips for those who want to claim under compulsory 3rd-party liability insurance

Compare car insurance plans with the help of MoneyMax.ph and apply directly online.

Car Insurance Company	Features
OONA Insurance (formerly MAPFRE)	10 years of casa eligibility 366 accredited repair shops PHP 5,000,000 maximum total sum insured Overnight accommodation - Yes, up to PHP 3,000 Towing - Yes, up to PHP 5,000 Vehicle removal crane services - Yes, up to PHP 10,000
Malayan Insurance	3 years of casa eligibility 58 casa repair shops PHP 7,500,000 maximum total sum insured Overnight accommodation - Yes, up to PHP 1,000 Towing - Yes, up to PHP 4,000 Vehicle removal crane services - Yes, up to PHP 8,000
Prudential Guarantee	10 years of casa eligibility PHP 3,000,000 maximum total sum insured Overnight accommodation - Yes, up to PHP 2,000 Towing - Yes, up to PHP 5,500 Vehicle removal crane services - Yes, up to PHP 15,000
SGI Philippines	5 years of casa eligibility 36 accredited repair shops PHP 5,000,000 maximum total sum insured Overnight accommodation - Yes, up to PHP 2,000 Towing amount - Yes, up to PHP 5,000 Vehicle removal crane services - PHP 10,000
Stronghold Insurance	10 years of casa eligibility 167 accredited repair shops PHP 3,000,000 maximum total sum insured
The Mercantile Insurance Corporation	10 years of casa eligibility 77 accredited repair shops PHP 5,000,000 maximum total sum insured Overnight accommodation - Yes, up to PHP 2,000 Towing - Yes, up to PHP 5,000 Vehicle removal crane services - Yes, up to PHP 10,000