When it comes to picking car insurance, sometimes it’s just easiest to go with what your friends use, or the company whose you’ve seen a couple of times in the newspapers. Like any business, insurance companies all have different rates, plus they can vary greatly in everything from their coverage to their office hours to the speed of their claims service.

If your planning to get one for your vehicle, (you should), don’t walk into the process blindly.

You have to know what questions to ask when you’re shopping around because not every agent you speak with will give you in-depth info on their coverage and all of your options. The good ones will do that, but the not-so-good agents will only cover the basics. It’s up to you to ask a wide range of questions so you can truly compare plans.

Here are some questions to ask before buying car insurance:

Which kind of insurance do I need?

In the Philippines, the law requires car owners to purchase and have a Compulsory Third Party Liability (CTPL) insurance policy before they register or renew their vehicles. CTPL provides compensation to the third party in case of an accident. Comprehensive car insurance can also be purchased for extra protection but isn’t required by law.

What if I can’t understand the information about insurance?

Don’t worry, there are a lot of websites online which explains the things you should know about insurance. Everyone might feel a little bit intimidated when they talk to insurance agents, so having a little background about what you might discuss on will be helpful.

Which companies should I consider buying insurance from?

Of course, everyone would recommend that you opt for the big names, but, it’s still up to you. You have to research the companies you are considering and make the choice depending on your gathered data. It would be helpful to check insurance comparison sites to make the data gathering process easier for you.

What is risk assessment and why is it important?

The insurance rate you’re offered is based on several factors that comprise how much of a “risk” you pose to the company. This means how much likely you are to be involved in an accident and make a claim.

It is important because insurance companies will base their insurance rates on these factors. The more of a risk you pose, the higher your rate will be. Companies base it from your age, sex, driving record, criminal record, credit rating, and your address.

What are deductibles?

The deductible is the amount to be shouldered by the insured before their claims were processed. The insurance company will shoulder the rest. In the Philippines, the following are the standard deductibles under the Motor Tariff:

Private Car 0.5% of Sum Insured under Sec. III – Loss & damage, minimum of Php. 2,000.

Commercial Vehicles 1.0% of sum insured under Sec. II – Loss and damage, minimum of Php. 3,000.

What are the payment options?

Although car insurance can really be expensive, some companies offer reasonable payment options which can help you afford what you need. Most insurers offer at least annual and six-month premium payment options. Make sure to inquire about your options if you know it will be problematic to pay annually

How is your customer service?

Getting into a road accident is stressful, even if no one is injured. Make sure the insurance company you will choose will be there to help you—even on a Saturday night.

Plenty of insurance companies now offer 24/7 claim reporting, both by phone and online, so make sure you select one that does.