You might think that car insurance is just another expense added to your monthly bills. However, car insurance gives you a safety net when unfortunate incidents happen to you, your loved ones, and your vehicle. You may not prevent an accident from happing, but you can protect yourself if or when it happens. Keep on reading to know more about the importance of car insurance and how you can choose the right one for your needs.
The Importance of Car Insurance: Why Should I Have One?
1. Car insurance is required by law
Every registered vehicle in the Philippines must get at least a basic Compulsory Third Party Liability (CTPL) car insurance. This policy protects you from any possible liabilities to a third party—any person other than a passenger, a family member, or a household member of the vehicle’s owner. CTPL is also one of the requirements before you can register your car to the Land Transportation Office.
2. It protects you from theft
The importance of car insurance shouldn’t be ignored, especially when hundreds of cars are stolen yearly. We’ve all heard horror stories of people stealing someone else’s beloved vehicle. While no one wants their car taken away against their will, it’s a possibility that everyone should prepare for. If your vehicle is stolen or vandalized, your insurance company can cover your loss.
3. Covers damages caused by disasters
On average, 20 tropical storms enter the Philippines every year, five of which are destructive. Filipinos usually have bags containing food and emergency kits in case of calamities. We also make sure our home are strong enough to survive flooding and the cruelest of storms.
However, protecting a vehicle from flooding and other natural disasters is quite difficult. A flood or an earthquake can easily damage your beloved ride. One of the purpose of auto insurance is that you don’t have to worry about a storm wreaking havoc on your vehicle. Car insurance covers damages caused by disasters, easing the financial burden you might carry in times of a crisis.
4. No up-front expenses
Another importance of car insurance to consider is that you may not have to pay for repairs and even hospitalization in the event of an accident. Some insurance companies cover an insured car’s passengers and shoulder their medical expenses.
Your policy may also cover the vehicle’s damages. You may not have to pay for any repair or have parts of it paid, depending on your insurance policy. When you and your vehicle experience any trouble, all you have to do is to call your insurance provider.
5. Easy claims process
One of the benefits of having comprehensive car insurance is that filing a car insurance claim can be relatively easy. At the onset, your insurance company will give you a list of requirements for the claim. They will also give you instructions on what to do with your car and a list of accredited car repair shops and documents you need to submit.
Once you’ve completed all the requirements, you just have to wait for your claim to be processed.
6. Saves you money in the long run
You might think that your car insurance premium is just another expense on your list. However, if anything goes wrong with you and your car and you don’t have insurance, you have to shoulder the expenses for car repairs and medical bills. Apart from financial damage, you may also feel emotionally stressed. Think of the importance of car insurance as an investment more than an expense that you will benefit from.
How Do I Choose the Right Car Insurance?
There are many car insurance policies in the market, making it a bit confusing—and even intimidating—to choose the right one. Here are some factors to consider when choosing a car insurance policy:
Determine your needs
Sit down and list your top-most priority when evaluating the importance of car insurance for you and your vehicle. For example, if your car is expensive or you simply want a higher level of protection for your vehicle, you might need to add more coverage in your insurance policy.
On the other hand, if you just want protection for extensive damages or accidents, you can just opt for the mandatory CTPL.
Compare and ask around
Ask family and friends about their car insurance policies. Know about their experience with the insurance company, especially when it comes to filing a claim. The companies referred to by your loved ones can be the starting point in your research. However, keep in mind that it’s still best to shop around. Use an online comparison tool like Moneymax for a faster and more convenient search.
Evaluate car insurance benefits and features
Some car policies have more features and benefits than others. Do your research first and compare various policies in the market. Make sure that you gather as much information as you can before choosing the best bang for your buck car insurance. This way, you can make the right decision in the end.
Consider a customized policy
Gone are the days of pre-packaged car insurance policies ready to be delivered to you. These days, you can customize your comprehensive car insurance policy and save you a few thousand pesos in the process.
Choose an insurance provider that offers flexible payment options
Make sure that you’re given a list of payment options to choose from. While some people have enough money to pay annually, some work well with monthly or quarterly payments instead of a yearly basis. Choose the one that is most comfortable for you.
Other related articles:
- Top Causes of Road Accidents in the Philippines
- Killer Highways: 10 Most Accident Prone Roads in the Philippines
While no one wants to be in a car accident, you still shouldn’t ignore the importance of car insurance in the Philippines. It’s better to be safe than sorry. Having a car insurance policy ensures that you and your car are protected from the financial stress of an accident. Sure, it’s an added expense, but it’s one that will give you peace of mind while you’re on the road.
-  Land Transportation Office Memorandum Circular No. AVT-2015-1975
-  PNP-HPG: 326 car theft incidents recorded in 2018 (Marquez, Inquirer.net, 2019)
The post The Importance of Car Insurance: 6 Benefits for Car Owners appeared first on Moneymax.