Highlights
- Your monthly car insurance payment depends on factors such as how old your vehicle is and where you park it.
- You can make an appeal if your claim is rejected.
- Insurance companies have become more understanding of people's situations due to the pandemic.
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"Most Filipinos only get third-party car insurance, meaning damages are only covered if it is their fault. On the other hand, comprehensive car insurance covers a lot of situations such as hail damage.
Finance journalist Michelle Baltazar shares that while hail damage can be covered by your insurance, there are circumstances that claims can be rejected.
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Which factors affect how much my monthly car insurance payment is?
According to Michelle, how old your car is and where you park it are two factors that insurance companies look into.
"When you sign the insurance contract, you are asked if you have an open or covered garage or if you have off-street parking. This determines how much you pay monthly.
"Your claim can be rejected if you have a garage and you leave your car outside during a hailstorm."
What do I do if my claim gets rejected?
Michelle says, "If you've been with your insurer for more than three or five years, you can make an appeal.
"Because of the pandemic, a lot of companies are a lot more understanding of people's financial situations. There are a few insurance providers that have even given discounts recently because cars haven't been used a lot lately."
Can I switch to another insurance company if my claim is rejected?
Michelle shares that a lot of people tend to look for another insurer when a hailstorm hits, but you're more likely successful in making an appeal than making a transfer.
"Insurance companies run a lot of algorithms on rates depending on what's happening in the market, so they know those who switch after a big hailstorm are people who are probably trying to get a better deal.
"Plus, remember that insurance has a long activation. They ask when you last claimed, where you live, how demerit points you have, who uses the car. There are a lot of questions and paperwork. You're better off appealing your claim."
How do I prepare for extreme weather?
According to Michelle, "Hailstorms are becoming a more common occurrence, so make sure to check your weather app. Actually, my insurer texts me four hours before if there's a possibility of a hailstorm so I can make sure my car is protected."
Disclaimer: This article is for general information only. For specific financial advice, you should consider seeking independent legal, financial, taxation or other advice to check how the information here relates to your unique circumstances.
