Five Reasons You Might Need Car Insurance

four-good-reasons-to-switch-car-insurance-1024x768

“She is not just four wheels and an engine. She is home” -Author Unknown

Owning a car is possibly one of the biggest investments you can make. And what do you do with your investments? You protect them with insurance. Protection aside, there is a myriad of reasons why you would need auto insurance—in some cases, it is required by law, and at other times, it is also for your own protection. Seeing as the car is already a big investment by itself, you might think that having auto insurance is just another unnecessary expense.

But take note, if you can afford to buy a car but not insurance, then you cannot afford to purchase a car. In any case, before you buy a car insurance in the Philippines, here are some excellent reasons to strengthen your resolve to do so:

1.) It is required by law

In the Philippines, traffic mayhem is rife which makes auto insurance essential. By law, you are required to get basic Compulsory Third Party Liability car insurance (CTPL) to protect against possible liabilities to third parties. Third parties could be anyone but the driver, passenger, family member or household member of the one who owns the vehicle.

CTPL is necessary as it would protect any pedestrian from potential damages or injuries that might have resulted from driving and use of an insured car. The coverage extends from body injuries to deaths that could be up to a hundred thousand pesos. However, damage or loss of property is not covered by CTPL and is limited in this regard.

2.) Your car is an expensive asset

The average brand new car in the Philippines would cost you almost half a million. As a result, it would be the second most expensive purchase most individuals would make in their lives.

Furthermore, most people would buy cars as it would make any of their trips convenient owing to the service they provide to their owners. With all this combined, you can easily see how protecting it adequately is paramount. Getting yourself car insurance is one way to protect this new asset.

3.) You cannot have a new car without it

In some cases, you cannot purchase a new car that includes a loan as you would not qualify if you do not have a full auto insurance policy. Additionally, you would not qualify to lease a vehicle either.

Most lenders would want the assurance to be paid. So, as a necessary consequence, if you figure in an accident without car insurance to defray the repairs, you would not be able to pay the company that provided you with a car loan. To ensure you keep paying this, you should get your car insured.

4.) Cars are important

If you use your car on an everyday basis and skip on car insurance, you would not be able to use your car if you get into an accident while driving it. This is especially the case if it sustains damage wherein you cannot afford to have it repaired.

Repairs and fixes are things covered by auto insurance and would help you get to where you need to be and make your necessary daily trips more convenient.

5.) Provide legal protection

No matter how cautious and mindful we are, accidents are an inevitable consequence of driving—whether we like it or not. Furthermore, accidents that involve third parties would likely land you in a legal snag—regardless of whether it is your fault or theirs.

This means that there is nothing stopping anyone from suing you and even if you do win the case, you would still have to pay the necessary fees in litigation. Your auto insurance would help you and serve as a buffer between any legal claims and your wallet. Some coverages would include providing an attorney to handle lawsuits arising from automobile accidents.

Image source

Advertisements

Five Things You Should Know About Auto Insurance

car_insurance_policy

In the Philippines, the average brand new car costs almost half a million pesos nowadays. Considering the exorbitant price you pay, it is readily assumed that your vehicle is one of the biggest investments you would ever make in your life. To protect this expenditure and asset, getting an auto insurance should not be a matter of the question when—but rather, it should be automatic.

For this reason, it is imperative to include an auto insurance when you are calculating your budget. After all, you would not only be paying bills to defray the cost of your car loan—but your car insurance as well.

However, do not just simply buy whatever auto insurance you can immediately find. You need to be a little meticulous about how you select an insurance for your car—take into account more than just the monthly premium you will be paying and think about what the insurance policy actually covers.

Experts may encourage you to buy as much auto insurance as you can afford, but this is not necessarily helpful. To have a better understanding of what you are paying for, it is best if you know the basics of how it works and which coverage you should have and skimp on. Understand what the best auto insurance coverage is for you and select that.

So, if you are planning to buy a car insurance in the Philippines anytime soon, here are a few things you should know:

1.) Some of the most helpful coverages are the cheapest

Typically, liability insurance would be the most expensive and as it should be. Most common coverage limits would mean that your insurance is on the hook for a great deal of money for any kind of damage that you do. However, not all coverages are the same, and most of them would be capped by the value of your car.

You might neglect to get optional coverages such as roadside assistance, rental reimbursement, and gap coverage but these are actually necessary for optimal protection with just a little price increase. Paying a bit more than usual would not be all for naught. After all, it could potentially save you a lot of money in the future.

2.) Many factors would affect your insurance rate

Your car insurance rate does not only depend on the make and price of your car. Depending on the auto insurance company, the criteria can mean a myriad of things when it comes to evaluating an insurance application.

Guidelines in each company differ in the sense of which drivers they want to accept and how much they would charge those groups they consider to be at a higher risk. Underwriting is the term given to the process of evaluating an application. It is usually done automatically and by a software behind the scenes.

3.) Insurance prices vary by company

Much like how life insurance prices differ from one company to another, auto insurance prices vary a lot by the company as well. This is because each company has its own formula to assess and evaluate a risk. From there, they will evaluate how much you pay for the coverage.

As a consequence, no two insurers would offer the same price for the same policy. Considering this, comparing prices is paramount to choosing the best insurer. After all, if you do not compare rates, you would likely end up overpaying or lacking in some coverages.

4.) You will potentially pay more if you let your policy lapse

Auto insurance companies view drivers who have licenses but without car insurances as reckless, irresponsible and risky. Considering this, letting a policy lapse means that you are likely to pay more when you do buy insurance.

Prevent this, make sure to acquire and pay for your car insurance before your current policy is canceled.

5.) Discounts can make a significant difference

You might think a safe driving record, anti-theft devices, and car safety features are negligible things, but it actually contributes to a significant difference in what you pay for your auto insurance.

Many companies would offer you discounts for this such as this—most especially if you opt to pay in full.

Image source

Budget Tips for College Students

students saving money

A few weeks from now, college students will be back to their classrooms, and we will also welcome heavy traffic on the roads. For workers or non-students, it is the start of the long months of being more patient on traveling. On the other hand, some students are all hyped up or maybe too tired to go back to school. Surely even if you are already finished taking classes, you have remembered whether you are the excited one or the “please extend our vacation kid.”

Whoever you are on the spectrum, one thing’s for sure: you want to save a couple of bucks in school. We have different reasons why we need to budget our money effectively and here are some tips on how you can achieve your goal:

Make use of your school’s fast Internet

I understand how hard it is for you to do paper works especially thesis without a WiFi LTE connection since most of the up-to-date facts and information you need are online. What you can do is to connect to your school’s Internet or maybe rent a computer in your library and download all the files you need to read or analyze. Trust me. I survived college without having a stable Internet connection at home. We only load our prepaid connection from time to time that is way cheaper than availing a full-contract service of Internet, and you will seldom use it.

Cook food at home and bring it to school

It can be your mom, dad, sibling or guardian who cooks at home, and it can be you! Aside from saving some money on buying expensive food at the cafeteria or canteen, you will be enjoying freshly prepared meals which are made with love and can fill your stomach (and heart and also your tired brain). It is also fun to share your baon with your colleagues.

Or eat outside your campus

And I am talking about carinderia or small food stalls. If you want to save, you know that high-end restaurant or eating at fast food chains every day won’t do you any good. Ditch those fancy places and start looking for the ones who offer budget meals for students.

PDF and online copy of books will save you

Have a soft copy but be sure that you are allowed to use it for the class (not to mention these copies should be legal). If there’s no problem with that, congratulations for saving some money! However, some people still prefer to have their readings printed or in hardcopy.

Reuse, recycle and reduce your things for school

In whatever we do and wherever we are, we should not forget the three golden R’s. If you have old things you can still use, don’t buy and reuse those. Have some time to DIY stuff you need at school? Improvise don’t buy. Reduce purchasing unnecessary new things if you can still make the most out of what you have.

Sell things you are sure you won’t need anymore

This could be your old books, uniform, gadget, to name a few. Again, know that you don’t need them anymore. You don’t want to regret selling things and wanting them back after a couple of weeks or years. This is not actually a budget saver but more on an income-generating move.

Maximize your school’s perks and benefits

Know your rights and privileges at school. If you can avail of some products and services for free or at a lower cost at school, go for it instead of buying and going to outside stores. Don’t be timid to ask your admin about the perks and benefits you as a student can enjoy.

different jars for money saved

It is never too late to start saving for your dream gadget, vacation, target amount saved, or whatnot. So gear up and have fun with a new school year ahead of you!

Four Basic Insurance Mistakes to Avoid

life-insurance-mistakes-to-avoid-in-india

“You would not cancel your insurance policy in the middle of a hurricane; you should not sell silver when it takes a tumble. Like any insurance, silver’s value will pay out over time, not day by day.” -Howard Ruff

Insurance is the metaphorical safety net you purchase to protect your family and yourself should any untoward incidents happen. While many have largely resisted getting themselves one seeing no absolute need for it, there has been a massive influx of individuals availing themselves of insurance policies. Most individuals make the mistake of not insuring themselves as they see this as an extra expense whose payoffs they do not get to enjoy unless they die or sick. In other words, they see insurance policies as physical manifestations of delayed gratification.

However, the reality is, having yourself insured is a significant investment and is actually more cost efficient—just think of the piling bills your family would have to contend with if you are uninsured. However, even if an individual does decide to get insurance, it does not automatically mean he is safe from committing any mistakes.

Remember, if you do not want to pay more than what you need, you can always keep insurance costs under control by avoiding making elementary mistakes. So, if you are planning to get insurance in the Philippines anytime soon, here are some mistakes you should avoid:

1.) Not shopping around for policies

One common mistake among people who buy insurance is that they do not shop around for insurance. They would usually take a look at the one offered to them and buy that one outright. If you are in the market for insurance policies, make sure to widen your options. Much like how you buy your household items or clothes, look around, choose the best one with the most reasonable price.

So, read the insurance guide given to you by the agent, make a few calls to several other companies, and you would see how this would make such a huge difference in the price you pay for insurance.

2.) Only comparing rates

While the price and rate are paramount considerations when it comes to buying an insurance policy, it should not only be the only considerations you have. Keep in mind that some insurance policies may be more expensive than the others because it offers a more expansive scope and coverage than the one you are looking to buy.

Furthermore, apart from the policies and packages offered, it would bode you well if you also examined the companies complaint ratio and saw if they have had any complaints in the past. Generally, a company with favorable reviews has a higher customer satisfaction—these are the companies you would want to get insured at.

3.) Not comparing agents

You should be as meticulous in selecting your insurance agents as you are with your insurance policies. Remember that not all agents are created equal, and there is certainly a fair share of charlatans in this industry who are just looking to rob you out of your hard-earned money in the guise of selling you an insurance policy. You should always make sure that your agent is properly licensed.

Additionally, it would be a great help if you could get referrals and if you asked them some questions. Ask them to explain what they are trying to sell to you and how it adds value to your life.

life-insurance-mistakes-to-avoid-in-india

Just as you would thoroughly read a contract, you should always read the fine print of the policies you are looking to buy. In fact, it is a consumer’s biggest mistake to overlook that and fail to know what their deductibles are. More often than not, if you fail to read your policy meticulously, you would not know what is covered until after disaster has struck.

Apart from thoroughly reading your policy, it would also be a good idea to talk to your agents and find out what is covered. Additionally, do an evaluation each year.

Image source

Two Questions to Consider Before Getting Permanent Life Insurance

Online life insurance application form

“Life insurance became popular only when insurance companies stopped emphasizing it as a good investment and sold it instead as a symbolic commitment by fathers to the future well-being of their families.” -James Surowiecki

 

While life insurance has been marketed as an ingenious savings plan that would inevitably serve as your family’s contingency money in the event of your death, it has been considered and advertised as a unique investment scheme prior to that. But as more and more people were hesitant in buying into an investment scheme that would take a considerable amount of years for a payoff to result, it has since then been promoted as this plan that looks out for the future well-being and welfare of their families.

As a result, more individuals are receptive to purchasing an insurance policy than they would have been years ago. However, this does not diminish an insurance policy’s potential for investment as today; there are still many individuals who would likely buy life insurance just to be able to invest.

If you are planning to invest your money in an insurance policy, make sure you talk to an expert on the field as well as a qualified agent well-versed with insurance in the Philippines. Some companies would likely give you the option of investing in permanent life insurance where part of your premiums would be invested, and some of it can even be borrowed tax-free for retirement or anything else—all that apart from the death benefit your heirs will get when you pass away.

However, before you jump the wagon, ask yourself these two questions and consider when it comes having permanent life insurance:

1.) How much life insurance do you actually need?

Asking yourself how much life insurance you need is paramount as you want to make sure that you buy as much as you need. Expensive and exorbitantly priced permanent policies would mean that you can afford to buy less which is not a good idea on the whole. You are buying life insurance to make sure your family is adequately covered financially if something were to happen to you.

So, it would only make sense to buy as much as you need but never less. In the same vein, you should not buy insurance that you do not need either as you are likely to spend more in it than what you or your family are expected to receive. Weigh your options and consider that your insurance company has to collect a series of premiums not just for benefits, but to cover their expenses as well.

2.) How long will you need the insurance?

Permanent insurance is incredibly expensive as its primary purpose is to cover for your entire life while cheaper term policies cover you when you are younger and are less likely to use it. However, people are under the mistaken notion that once they retire, they would need a lot of insurance but on the contrary, they usually do not. Mainly because they no longer have any dependents apart from the spouse who lives off from Social Security, some assets or pensions anyway.

But if you do not have enough assets to cover final expenses such as funeral costs or at least want a small policy to cover these so as not to be a financially cumbersome task to the family, you would need insurance in retirement.

Furthermore, if you fall into the second category of having a dependent who would not have enough income should you pass away, then you would also essentially need insurance even in retirement. Lastly, those who have taxable estates and would want to have life insurance as an option to pay out the estate tax should consider this option as well.

This is especially useful if they do not want their heirs to sell a business or make taxable retirement account withdrawals just to defray tax payments. However, if none of the three would apply to you, then you might want to reconsider getting permanent life insurance.

 

Image Source

Insurance 101: Five Insurance Policies Every Individual Should Have

Schengen Visa Insurance Schengen Insurance Schengen Travel Insurance http://www.equityschengen.com/ Europe Travel Insurance Europe Visa Insurance

“Fun is like insurance, the older you get, the more it costs” –Kin Hubbard

Getting insurance has always been a source of internal debate with a lot of individuals. More often than not, people tend to see it as an additional expense they would not be able to fully enjoy—or something akin to a delayed gratification that they would only be able to enjoy in years to come.

However, you would be surprised to know that getting yourself insured is getting a safety jacket for yourself—figuratively that is. You might not need it now, but you would be so grateful for it once you are in a car wreck, experience illness, have your house razed by fire or even when you are swimming in debt.

The truth is, once you have yourself insured, you will sleep a lot better knowing that you are adequately covered should anything untoward can happen. After all, one of the best guarantees getting insured can give you is peace of mind. However, covering all of your bases might be a little complex, and you might need to know which insurance coverages you should have and which ones you do not necessarily need.

So, before you visit companies that specialize in insurance in the Philippines, it helps to have an awareness of what policies you should have.

1.) Auto Insurance

If you have a car, chances are you are going to want to have it insured. No matter how safe you claim to drive, having car insurance is paramount as you would not want to be inundated with auto bills should anything untoward happen to your car. Car accidents are inevitable, and more often than not, they would not be your own fault—getting your cars insured would help you defray the cost. Choose an auto insurance that has adequate liability insurance—one that covers anything you might have caused in an accident, from the damage to the car to the health of the humans inside.

2.) Health Insurance

Health insurance is self-explanatory but to elaborate, just think of how vital your health is. No matter how young or robust you are, your body is going to experience diseases and ailments all throughout your life. Leaving yourself uninsured is like setting yourself up to pay for medical bills for years and even decades depending on the severity of the illness. You and your family should never go without it.

3.) Homeowner’s/ Renter’s Insurance

You will never know when disaster will strike and do damage to your home and possessions. When it does, leaving your house uninsured means that you would have to pay for the repairs and replacements out of your own pocket. To guarantee that your home insurance covers everything, log your possessions and take pictures should you need to make a claim. Additionally, it would be helpful to get a homeowner’s insurance that includes you have a guaranteed replacement cost.

4.) Disability Insurance

Much like health insurance, you can never really predict if a certain illness or particular accident will render you unable and unfit to perform an existing job. This holds true for long-term disabilities as well which is why some companies would offer great rates. Being unable to carry out a job means that your current income would suffer, look for a policy that covers at least sixty-five percent of your income should you be unable to perform the job you are required to. In this way, you are still covered even if you are unable to generate income.

5.) Life Insurance

If you care for your family, you will not leave them in debt and without a shilling should anything happen to you. Getting life insurance means that even after your death, your family will still be financially able to get on with their daily lives and would be able to cover the burial expenses while they are grieving.

Image source

Personal Behaviors that are ruining Your Financial Health – Slowly but Surely!

Beefing up one’s savings remains a significant challenge even for the thriftiest person. You can’t really tell when emergencies happen and more often than not, it requires you to spend money – including a portion of those on your savings.

It would be good if you’re covered by a reliable accidental medical insurance policy. But for individuals who are not, having enough money when accidents strike is necessary. Saving, however, becomes a problem with the following behaviors that are ruining your finances.

The ‘one-day millionaire’ tendency

Characterized by:

  • Immense urge to spend money at hand
  • Thoughts centered on buying anything he/she wants
  • Strong feeling of rewarding oneself by spending

Spending to reward yourself after days of hard work is beneficial. You deserve it. But this doesn’t mean that you must spend all your money at once just to feel justified on the amount of labor you do. Keeping this mindset is dangerous for your financial health since it leads you to believe that you need to get something for yourself.

Even if you don’t have to buy that new running shoes, given that you just bought one 2 months ago, you felt like it is okay. After all, you worked hard for it.

The ‘one-day-millionaire- mindset is the easiest to determine but is equally difficult to stop since your mind starts to justify the act of spending.

‘More-things-equals-more-happiness’ mindset

Characterized by:

  • Desire to hoard things
  • Feeling of distress when you can’t buy something you want to have
  • Feeling of euphoria when acquiring something new regardless if you need it or not

We commonly know this as materialism. It’s when we equate happiness to owning something more. While it is true that you get a sense of achievement by acquiring something, making it as your standard for feeling happy is a dangerous thing.

If you do, then that would mean you’ll feel sad when you can’t buy something. What if the limited edition DVD copy of your favorite movie is sold out? What if you don’t have enough money to purchase something?

Someone who has been used to hoarding things is likely to get upset when they lose the chance to buy something. In worst cases, this could lead to anxiety and even clinical depression. To make themselves feel good, they must buy that one thing they want most. Before they know it, they’ve already spent too much money, and the feeling of guilt afterwards often gets them even more anxious.

‘I-can’t-live-without-it’ behavior

Characterized by:

  • Impulse buying
  • Inability to think thoroughly whether or not an item is necessary
  • Desire for instant gratification

You might’ve heard someone a couple of times in the past saying something that goes like: ‘I can’t live without it.’ And perhaps you’ve question several times whether or not that’s true.

People who have this behavior say it out of habit but in reality, it’s the opposite. One does not die without buying that limited edition sweatshirt. Nor do they collapse out of nowhere when their favorite cosmetics brand run out of stock.

However, with their mind already set in getting something, it feels like they can’t really live well without that ‘item.’

This behavior is arguably the most difficult to control, and some experts even suggest that you see a psychological therapist to address the behavior. In most cases, the need to spend and acquire are manifestations of something psychological in nature. Primarily though, keeping up with this behavior means that you’re spending more than your income.

That, in itself, is a dangerous thing.


Financial health begins with awareness of your spending in relevance to your income. Reevaluate your spending habits and see if you’re doing enough justice to your savings. Be mindful of the behaviors we mentioned on the list and strive to minimize and cut them off your habits!