5 Tips in Choosing a Car Insurance Provider

Picking an auto insurance provider can be a daunting task for a new vehicle owner and that includes even a law student like me.  Choosing the right auto insurer for your needs is very important because a vehicle is a huge investment that requires protection that an insurance will provide. 

Finding a good car insurance provider seems as hard as finding a lifetime partner, for me at least. Why not? A motor vehicle insurance is something you will have to deal with for a long time,  so it is better choose wisely.

I have done my own fair share of research to find the car insurance that best answers my specific needs and these 5 tips might cut the job short for you.

If you happen to buy a car in the Philippines country,  it can often mean that the auto insurance is already included with it hence, it does not leave you much of a choice.  On hand,  if you have a choice,  you might want to take a note of these pointers.

1.  Know what you need.

Take time to think things through.  Make a rough list of the things you want out of your insurance. You must consider things such your budget for premium payment,  what kind of coverage and other details must be first be set out so you get all the basis covered before you even begin your search for your vehicle insurance.   The premium you are paying depends on these factors; Age of the car, price of the car safety record, repair history, etc.

2.  Ask out friends and relatives for recommendations

If you have zero knowledge about insurance companies,  do not be afraid to ask people who have been there and done that for recommendations.  This will give you ideas on what car insurers are out there that could provide you what you want in your vehicle coverage.

3.   Online comparison sites

Once you have ideas of insurance companies and what they offer,  it is now time to pair down your choices to at least 3-4.  Online comparison insurance websites now allow you to key in your preferred options are available.  Yes, they can help you with your initial decisions in pairing down your options.

4.   Find an insurance company that is stable.

You do not want a fly-by-night insurer.   Dealing with a legit insurer is the most important consideration among others.  Financial standing is likewise an important consideration to guarantee that your money won't be put to waste when the need arises.  Good reputation is also definite important point in choosing you car insurer.  This is often indicated by how many years they have been in business and whether they are involve in controversies or not.  Do your background check by checking with the insurance commission or insurance company registration agency in your state.

5. Check out the customer response of the company.

You must check out if the company good at responding to the queries, complaints of the client?
Understandably,  initial client contact and query with a company often gets a fast response because they will move heaven and earth to sign you up.  Do not disregard to check out the social media accounts of the insurer to give you an idea of how fast they respond to clients inquiries and complaints in these channels.

If at first instance you have been bounced around in the company then that is a definite red flag so observe how the insurance company deals with you.  Things to consider are as follows;  is it easy to contact them?  Do they have different point of contacts or channels to contact them? Do they have a hotline?

So there you go, I hope you find these tips helpful in your car insurance dilemma.

If you got anything to say or comment, feel free to leave your comments below and if you like this post, don't forget to click on the 'Follow' button right uppermost side of this page.  Thank you very much Until next post.

Tibay v. CA Digest

Tibay, et. al v Court of Appeals

GR No. 119655, 24 May 1996

Bellosillo, [J.]

Facts:

1.       In January 22 1987, the Petitioner Violeta Tibay (and Nicolas Roralso) obtained a fire insurance policy for their 2-storey from the Private Respondent Fortune Life Insurance Co. The said policy covers the period from January 23, 1987 until January 23, 1988 or one year for P600, 000 and at the agreed premium of P2, 983.50. On January 23 or the next day, petitioner made a partial payment of the premium with P600. 

2.       Unfortunately, on March 8 1987, the said building was burned to the ground. It was only two days after the fire that Petitioner Violeta advanced the full payment of the policy premium which was accepted by the insurer. On this same day, petitioner likewise filed the claim that was then referred to the insurer's adjuster. Investigation of the cause of fire commenced and the petitioner submitted the required proof of loss.

3.       Despite that, the private respondent Fortune refused to pay the insurance claim saying it as not liable due to the non-payment by petitioner of the full amount of the premium as stated in the policy.

4.       The petitioner then brought the matter to the Insurance Commission but nothing good came out. Hence this case filed.

5.       The trial court rule in favor of the petitioner. Upon appeal, the Court of Appeals reversed the lower court's decision and held that Fortune is not liable but ordered it to return the premium paid with interest to the petitioner. Hence, this petition for review.

Issue: W/N the partial payment of the premium rendered the insurance policy ineffective?

 YES.

1.       Insurance is a contract whereby one undertakes for a consideration to indemnify another against loss, damage or liability arising from an unknown or contingent event. The consideration is the premium, which must be paid at the time, way and manner as stated in the policy, and if not so paid as in this case, the policy is therefore forfeited by its own terms. In this case, the policy taken out by the petitioner provides for payment of premium in full. Since the petitioner only made partial payment with the remaining balance paid only after the fire or peril insured against has occurred, the insurance contract therefore did not take effect barring the insured from claiming or collecting from the loss of her building. 

2.       Under Section 77 of the Insurance Code (Philippine), it provides therein that "An insurer is entitled to payment of the premium as soon as the thing insured is exposed to the peril insured against. Notwithstanding any agreement to the contrary, no policy or contract of insurance issued by an insurance company is valid and binding unless and until the premium thereof has been paid, except in the case of a life or an industrial life policy whenever the grace period provision applies." Herein case, the controversy is on the payment of the premium. It cannot be disputed that premium is the elixir vitae of the insurance business because the insurer is required by law to maintain a reserve fund to meet its contingent obligations to the public. Due to this, it is imperative that the premium is paid fully and promptly. To allow the possibility of paying the premium even after the peril has ensued will surely undermine the foundation of the insurance business.