Top Tips To Follow When Buying Insurance for Your First Car

Introduction

Purchasing a car is a significant investment for many Filipinos since vehicles can cost quite a lot, especially if they’re brand new. So, it’s only imperative for you as a driver and owner to have your vehicle insured. Additionally, Philippine laws require car owners in the country to have insurance coverage before registering their vehicles.

Buying car insurance is a way to protect yourself from significant financial losses in case your vehicle gets damaged due to various circumstances. If it’s your first time purchasing a car, following these five tips will surely benefit you.

Tip #1: Do Ample Research

Before you purchase car insurance from any provider, be sure to conduct ample research. This way, you can learn about the different products available and familiarize yourself with the jargon typically used in the industry.

For the products, you might encounter compulsory third-party liability (CTPL) insurance. All motor vehicle owners, whether they have a car, a small truck, or a motorcycle, are required by the Land Transportation Office (LTO) to buy this specific product from any insurance provider. This protects the owner from any financial liabilities if the insured vehicle is involved in an incident resulting in the injury or death of a third party.

You might also be offered comprehensive car insurance, which is more extensive and has wider coverage. Depending on the specific product, it could protect you from financial losses in case your car gets damaged because of natural disasters, vandalism, theft, and others.

Tip #2: Prepare the Documents Beforehand 

As part of your research, learn about the documents needed when purchasing insurance. Furnishing them beforehand helps you save time going back and forth to the insurer because you’re missing some of their requirements.

It differs from one insurance provider to another, but some of the most common requirements are:

• Driver Information – The insurer might ask you to provide them with a photocopy of your driver’s license. In some cases, they might also request that you furnish a copy of another government-issued ID.
• Vehicle Information – In many cases, the insurance provider will ask for documents regarding the registration of the vehicle. This allows them to check if you are the actual owner of the car you wish to insure.
• Insurance Form – Typically, the insurer will ask you to fill out a form asking for important information about you (the insured) and your beneficiaries.

Tip #3: Consider Your Budget

One of the major factors you should consider when buying insurance is your overall budget. You can’t forgo buying CTPL insurance because it’s required by the LTO, but don’t worry because it doesn’t cost that much. Some insurance providers, like Cebuana Lhuillier, offer that product for less than ₱700, and it’s already usable for a whole year.

CTPL, however, only covers car accidents, so it might not provide enough protection. In that case, you might want to check out other insurance products. Keep in mind, though, that getting more comprehensive insurance coverage for your new car typically entails paying more. But these financial products can give you peace of mind that you are protected from extreme financial losses if something happens to your vehicle.

Tip #4: Keep Yourself Safe While Driving

Even if your vehicle is insured, you should still be wary of reckless driving. You might be protected from financial losses, but keep in mind that getting caught in an accident can cause massive problems. This is especially true for drivers who get injured, harm others, or damage properties because of a collision.

However, no matter how careful you are on the road, there might still be unforeseen circumstances that you should prepare for. In case a driver gets into a vehicular accident, they should first check if they are safe or injured. Move out of the vehicle, take pictures, and call the authorities immediately.

Tip #5: Get Insurance From Cebuana Lhuillier

If you plan to buy car insurance for your new vehicle, Cebuana Lhuillier offers various options, including CTPL insurance. If you wish to insure your car (or any other 4-wheeled vehicle), you can do so for just ₱610.40 for a whole year’s coverage. We also offer this product to motorcycle owners for only ₱300.40.

You might think CTPL might not be enough to protect you and your car from accidents and other unforeseen circumstances. In that case, you can check out our AutoCare program. It is a comprehensive insurance product that covers own damage, theft, loss, acts of nature, and more. This specific product expires after one year.

The best thing about Cebuana Lhuillier’s car insurance products is they’re easy to get. All you have to do is follow these steps:

1. Visit your preferred Cebuana Lhuillier branch, and tell the staff that you plan to purchase insurance for your new car.
2. Pay the amount asked by the staff, and wait for them to give you the certificate of coverage for the insurance product you’ve bought.
3. Sign the certificate and fill out the necessary details on it.
4. Keep the certificate in a secure place, so you can get it easily whenever necessary.

Making a claim on your auto insurance policy is pretty easy, as well, as long as you have all the necessary documents ready. The requirements vary depending on the type of insurance you wish to claim, but among the constants are your certificate of coverage, valid IDs, and police or incident reports.

Here’s a quick guide on what you have to do if you wish to make a claim:

1. Learn about the requirements you need to furnish and prepare them as soon as possible.
2. Go to your preferred Cebuana Lhuillier branch and tell the staff that you wish to claim your insurance.
3. The staff will walk you through the process.
4. If your insurance claim is less than ₱50,000, you will get the amount in cash. Otherwise, you will be given a check.

Conclusion

Buying car insurance is a must for every vehicle owner. This financial product protects you from the potentially high costs of having your car repaired in case it gets damaged due to unforeseen circumstances.

Cebuana Lhuillier is here to help you get some of the cheapest car insurance products available. We have the government-mandated CTPL insurance product, but if you think it’s not enough, we also have the more comprehensive AutoCare.

Feel free to visit any of our branches today to learn more about our car insurance solutions. Our friendly staff members will be more than happy to walk you through the process of buying car insurance and teach you how to claim it whenever you need to.