5 Tips on Buying your First Car

Excited to purchase your first car? Here are some tips on what to look out for when purchasing your first car.

1) Find a car that fits your need & budget

You have to assess your need and why you're purchasing your car. If ever your purchase is for city driving then it is smart to look at compact cars such as Kia Picanto, Toyota Wigo, Honda Jazz and the like which are cost efficient and easy to park. Also take into consideration the number of passengers that you would be driving. Is it just you and your significant other or will it be a family car, in which it would be best to get a bigger car like a sedan or an SUV.

By establishing your need and use, you can now look at your budget which leads to the second tip.

2) Shop around for auto loans

Auto loans nowadays are very competitive. With the good economic standing of the Philippines, car loan rates are at an ultimate low. Some banks offer better rates than others thus it is always good practice to look around and canvass for the best deals. It is not always beneficial to take the first offer that you get especially the offers from the dealership.

3) Get the shortest loan term you can afford and make early or extra payments when you can

Upon taking that car loan, shorter is always better. Usually the longer the loan the cheaper your monthly amortization will be however if you calculate your monthly expense, you will find out that you will actually be paying more for your car in interest compared to acquiring a shorter term loan.

So when able, it would be best to take the shortest loan term and when blessed with extra, allocate some of those funds to paying your car loan.

4) Find the best car insurance rates

Insurance is another cost that you have to take into consideration when acquiring your first car. As we say, it is always better to be safe than sorry. Accidents are a part in everyday motoring life and we can drive confidently knowing that we are covered in case anything goes wrong during our drive.

Just like banks, there are numerous insurance companies out there competing to get your business. Shop around and don't get embarrassed to ask around for quotes as well as getting to know the details of the coverage. This will save you time and hassle whenever the need arises that you would claim from your insurance.

5) Test Drive

Seeing is believing! The most important part when deciding on purchasing your first car or any car for that matter is getting the feel for the unit that you are thinking of acquiring. Upon your test drive, you can actually get to know and familiarize yourself with what you are about to buy. If you are not convinced with the performance or any other reason, don't force it. There are other cars out there.

Personal Tip: Based on experience, I highly suggest that you also look at the availability of parts for the vehicle that you are thinking of buying. As a repair shop, we've experienced certain car brands and models stay in the shop for weeks at a time waiting for their spare parts to arrive.

Not to mention the cost. Original parts will always cost more compared to third party or surplus parts. So it's also something to consider. My advice, take a look at the car brand/models on the streets, if it's common, then rest assured there are spare parts highly available in the market.

Over-all, the final say is up to you. If you missed it and want to know the long-term costs of your car. Check the infographic from the previous posts here.

Enjoy your brand new car!

Photo courtesy: Shutterstock

Auto Insurance 101: Documents Required to Claim Insurance

Coming from an accident and all the trauma that comes with it, the next step is to submit all the documents required so that the insurance company can begin to process your claim.

Submit the following documents:

1) Original copy of duly accomplished Accident Report Form or Police Report

2) Photocopy of the Vehicle's Registration Certificate (CR) and Current Official Receipt (OR)

3) Photocopy of Driver's License and Official Receipt

Once you have compiled all the necessary documents and submitted it to your insurance company, the next step is for you to take your car to the accredited repair shop to have a photo taken of the extent of the damage along with a price estimate of repairing your vehicle. When this is done, the repair shop will forward all these requirements to your insurance and so all that is left for you to do is wait for the approval from the insurance company for you to bring in your vehicle to the shop for repairs.

Note: Accredited Auto Repair Shops facilitate the processing and approval of your insurance claim. So if ever you are looking for a convenient way to claim from your insurance company, approach any accredited auto repair shop and they will do all the necessary legwork to have your vehicle repaired.

To learn more or have questions about auto insurance, please leave a comment below or visit our Facebook page.

Photo Courtesy: Google Images

Auto Insurance 101: What to do in a fender bender?

Getting into a fender bender is something that we do not desire, however accidents do happen and when it does it is always best to have insurance coverage over our vehicle.

With that in mind, what are the steps you should take when you encounter an accident to make sure you have everything needed to claim from your insurance:

1) Stop and seek assistance from a traffic enforcer to obtain a sketch.

2) Get the name and contact information of the other party. If possible get the make/model/color/plate number as well as their insurance company. 

3) Take your own photos of the incident, along with the extent of the damage not only to your car but also the other vehicle involved in the accident.

4) Most importantly, stay calm and relax. You might be shaken up but anger will not resolve anything. Just follow the lead of the traffic enforcer and they will lead you through the proper process by: 

          a. Creating the sketch

          b. Referring you to the nearest police station to determine who is at fault based on the sketch

          c. Issuing a Police Report which would be needed to claim from your Insurance

Next week's post will be about the documents you will need and the steps to take in order to claim from your insurance and repair your vehicle.

Photo Courtesy: Top Gear Philippines

Auto Insurance 101: Third Party Liability

Third Party Liability (TPL), which is included when you obtain a comprehensive insurance, covers the liability (expense you have to shoulder) in the event you accidentally injure a third party (pedestrians, other drivers, or your passengers that are not members of your household or family and are beyond the second degree of consanguinity).

Although it does not cover liability to any sort of property, whether it's the vehicle, other vehicles involved in the accident or damage to standing properties in the scene of the collision. This is where Property Damage or PD comes into play.

The PD will cover the extent of the damaged property within the accident. This coverage pays for damage you (or someone driving your car with permission) may cause to someone else's property. Usually, this means damages to someone else's car, but also includes damages to lamp posts, telephone poles, fences, buildings, or other structures your motor vehicle may hit.

The advantage of having the TPL as well as the PD coverage with your car under a Comprehensive Insurance is that on the occasion that an unfortunate incident occurs, asides from saving on repair cost, you will also benefit from the hassle of paying for physical injury, doing paperwork and legwork.

Rather than jumping from one government office to another, waiting in line and getting documents stamped, the insurance company will aid you in this process saving you time and the hassle. So all you have to do is bring the proper documents and insured unit to the authorized repair shop and that's it.

To know what to do when you get into an accident and the proper documents needed to claim from your insurance. Watch out for next weeks post!

Auto Insurance 101: Comprehensive Insurance

In the previous post on automotive insurance, we talked about the mandatory CTPL or the Compulsory Third Party Liability. Today we will discuss the most common and highly advised type of auto insurance which is the Comprehensive Insurance.

Basically the Comprehensive Insurance covers all types of coverage as listed below:

     1) Compulsory Third Party Liability (CTPL)

     2) No Fault Indemnity

     3) Loss or Damage

     4) Excess Liability Insurance

            - Excess Bodily Injury

            - Third Party Property Damage

     Additional Optional Coverage:

            a. Auto Passenger Personal Accident

            b. Acts of Nature (Act of God)

Types of Auto Insurance Coverage

Since the prevalence of unfortunate events in the Philippines the past few years; such as Yolanda, earthquakes and the like, insurance companies have opted to offer certain coverage as an additional cost such as the Acts of Nature (AON) on top of the comprehensive insurance that a motorists acquires. Adding an AON on your policy will just be an extra P1,000 up to P2,500 on average for the coverage of your vehicle (depending on make and model), which is not that bad compared to having to pay for the damages of unforeseen circumstances in the future out of your own pocket.

Comprehensive auto insurance pretty much covers all the damages of your car when you get in a jam. However certain incidents are not covered when for instance your car gets a dent from a falling coconut. For this, it is a distinct advantage to add Acts of Nature in the coverage which covers the damage to your vehicle resulting from events that are not man-made (including the coconut).

The following week, we would tackle what is a Third Party and the liabilities involved. This is very important to learn as we drive our vehicles around Cebu/Philippine traffic.

Be courteous and Drive Safely!

Photo Courtesy: moneymax.ph

Auto Insurance 101: Is Car Insurance Necessary?

Many people who own cars in the Philippines would wonder whether car insurance is needed or is it just an added expense. The short answer is YES, car insurance is required but it also has other perks.

Firstly, car insurance is a mandatory requirement for car registration. Under Republic Act 10607:

Per Sec. 387 of the Omnibus Amendments to the Insurance Code

“It shall be unlawful for any land transportation operator or owner of a motor vehicle to operate the same in public highways unless there is in force in relation thereto a policy of insurance or guaranty in cash or surety bond issued in accordance with the provisions of this chapter to indemnify the death, bodily injury, and/or damage to property of a third-party or passenger, as maybe, arising from the use thereof.”

As mandated by law, this type of insurance coverage is called Compulsory Third Party Liability (CTPL). It is a very basic insurance coverage that only covers the death and/or bodily injury of a Third Party victim in an accident caused by the Insured Vehicle.

Yes! Car Insurance is needed and should be desired.

Asides from abiding the law, the perks of having car insurance is being able to save money, time and having the peace of mind that your car is covered in case of any accidents that may occur. 

So it is advisable to have car insurance, that in case of any fender benders that you might encounter in the future, you will be secure knowing you've got insurance to take care of the damages as well as you'll be able to save time and money in having your car repaired with us or in any accredited auto repair shops in Cebu and around the country.

Next week, we would talk about the different types of insurance coverage and other add-ons to make sure that you have your car covered in any situation that may arise. To learn more and not miss out on any automotive information like us on Facebook here.

Photo Courtesy: moneymax.ph