“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.