Top reasons to get your car insured in the Philippines

Owning a car is a dream for many, however, many don’t realize the true cost of this dream. In addition to the down payment and EMIs, insurance premiums are another expenditure that you can’t ignore. Now, a first-time car buyer may ask, why is it important to insure a car? Can’t I just drive it without an insurance cover while maintaining all the precautions?

We’d say, car insurance is a crucial aspect of every car owner's journey. No matter how good a driver you are, or how safely you drive, it is very important to get your car insured. The insurance covers payments related to car repairs due to accidents as well as liability to others.

In short, car insurance isn't just a legal requirement in most states, but it offers numerous benefits that protect you, the passengers, and your vehicle. However, the market is filled with different kinds of insurance policies and to choose the right option, it is first important to understand the different policies & their benefits. Though we have already covered it all in detail, here is a small recap of what car insurance is, its working, and its benefits.

Understanding car insurance

Car insurance in the Philippines is no different than car insurance policies in other parts of the world. However, it is very important to understand the specific coverage offered and local requirements. But first, let us know what exactly is car insurance.

Car insurance or auto insurance is a motor vehicle protection cover that offers benefits in the form of compensation for damage or loss to the vehicle against a monthly premium. There are several insurance providers in the Philippines, offering various types of car insurance coverages, each offering different levels of protection.

Therefore, choosing the right policy that best suits your requirements (including driver’s need and vehicle’s condition) becomes a priority. Also, before making a final call, there are a few things one must consider, whether you are a new or seasoned driver, whether the car is brand new or used, will the car be driven single-handedly or not, and more. Why? This will help you pick an appropriate insurance coverage for the vehicle. Some of the inclusions a car owner must consider are -

• Personal accident
• Roadside assistance (in case of breakdown or accident)
• Collision coverage and/or liability coverage

Also Read: Understanding nature and acts of God coverage for your car in the Philippines

Here are some compelling reasons to get your car insured:

 

Peace of mind

One of the most significant benefits of car insurance is the peace of mind it offers. Knowing that you are financially protected against various risks allows you to drive with confidence. It reduces the anxiety associated with potential accidents or damages, ensuring that you can focus on the road ahead.

Legal requirement

It is mandatory in the Philippines to acquire third-party liability insurance aka CTPL. It is the most basic car insurance a driver needs to be able to drive in the country, however, it only covers a few things and excludes the insurance holder. In short, CTPL covers financial obligations to the third party involved (death and bodily injuries).

Financial protection against liability

If you are involved in an accident, you are liable for the resulting damages and injuries. Car insurance provides liability coverage that pays for the other party's medical expenses and property repairs. Without insurance, you could face lawsuits and be responsible for paying these costs out-of-pocket, which can be financially devastating. Liability coverage ensures that you are protected from significant financial losses due to accidents.

Note, if you are not able to pay for the damages (which you have caused), you’ll end up dealing with legal matters.

Damage coverage

Accidents can cause substantial damage to your vehicle as well. Collision coverage helps pay for repairs or replacement of your car if it's damaged in an accident, regardless of who is at fault. Comprehensive coverage, on the other hand, protects against non-collision incidents like theft, vandalism, natural disasters, and more. These coverages ensure that you are not left without transportation or burdened with repair costs.

Protection from an Uninsured Driver

Despite the legal requirements, some drivers remain uninsured. If you are involved in an accident with an uninsured driver, your uninsured motorist coverage can help cover your medical expenses and car repairs. And you can’t imagine what a great help it is.

Financial security & savings

Car insurance premiums that a car owner pays are like an investment toward their future financial security. For instance, during an unexpected situation such as a serious accident where the car is heavily damaged, the owner can easily take up the challenge without having to worry about financial matters. In short, car vehicle insurance will not let an unexpected event hamper your finances against unexpected planning.

Protection against unexpected losses

In case of an unexpected financial loss, car insurance offers protection to the insured as vehicle damage at such a time can be a heavy burden. Though financial planning might look difficult, having car insurance by your side can help you avoid losses due to accidents.

Also Read: Do’s and don’ts of car insurance policy in the Philippines

Offers coverage from natural disasters

The Philippines is prone to natural disasters such as typhoons, earthquakes, and floods. Comprehensive car insurance can include Acts of Nature (AON) coverage, protecting your vehicle from damage caused by these events. This add-on is particularly valuable in a country where weather-related incidents are common.

Theft and vandalism protection

Car theft and vandalism are concerns for vehicle owners in urban areas. Comprehensive car insurance can cover the loss or damage to your vehicle due to theft or vandalism. This ensures that you are not financially crippled if your car is stolen or damaged by malicious acts. It includes the cost of stolen parts and sometimes even the entire vehicle, depending on the policy.

Medical coverage

In the unfortunate event of an accident, car insurance can cover medical expenses for injuries sustained by you and your passengers. This is crucial in managing healthcare costs, which can be substantial.

Guaranteed car repair

With car insurance by your side, a vehicle owner can rest assured about their car getting repaired at a trusted and qualified repair shop. Insurance providers often have a trusted network of workshops where you get guaranteed repair service. All this makes a car owner feel secure and confident, as the car is getting repaired in good condition and under high standards.

Additional protection

Based on the applicant's needs and budget, the car insurance provider offers additional protection against events like civil commotion, riots, strikes, etc

Lost wage recovery

If an accident results in injuries that prevent you from working, some car insurance policies offer lost wage recovery. This feature allows you to claim a portion of your lost income while you recover, helping to mitigate the financial impact of being unable to work.

Roadside assistance

Many car insurance policies offer roadside assistance services. This can be a lifesaver in situations where your car breaks down, runs out of fuel, or needs towing. Such services ensure that help is available when you need it the most, reducing the stress and inconvenience of being stranded on the road.

Bottom line

Car insurance in the Philippines is an essential investment for vehicle owners. It provides not just financial protection but also peace of mind. It ensures that you are covered in case of accidents, natural disasters, theft, and other unexpected events. Thus, by securing car insurance, a car owner not only complies with the legal requirements but also safeguards his/her financial stability. It is a sign of a responsible driver & ensures safe driving.

Also Read: 15 cars that are cheaper to insure in the Philippines