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• The Importance of Having Acts of God Insurance Coverage

The Importance of Having Acts of God Insurance Coverage

Do you know that the Philippines is ranked as the third most disaster-prone country in the world^[1]? We experience almost all forms of disasters such as typhoons, earthquakes, and volcanic eruptions.

We never know when calamity will strike so it’s better to be safe than sorry. Keep yourself from the costs that come with a damaged vehicle brought by a natural disaster. If you are getting car insurance, make sure that you have Acts of Nature or Acts of God coverage.

What is Acts of God coverage?

Acts of God is a type of car insurance coverage that covers non-human and non-mechanical damage risks, attributable to natural phenomena. An Acts of Nature coverage may cover the following natural events:

• Flood
• Typhoon
• Hurricane
• Earthquake
• Volcanic eruption
• And even falling fruits (Yes, falling coconuts count.)

The concept of the cover traces back to the Hammurabi Code, one of the first written laws. The code allowed a debtor to be saved from having to pay back borrowed money in the event of an uncontrollable personal catastrophe. These events include natural disasters, the same way that an Acts of Nature cover protects a car owner in the event of damage incurred due to storms and other calamities.

Read more: First Time Driver? Here’s How to Get the Right Car Insurance for You

Why do I need Acts of God in my car insurance coverage?

The Philippines is the seventh most populated country in Asia. We’re situated on the Pacific Ring of Fire, and the most cyclone-prone waters on Earth. The country experiences more than a fair number of calamities, from typhoons like Ondoy to the recent volcanic eruption of the Taal Volcano that covered vehicles in ash.

A vehicle covered in ash after the recent Taal Volcano eruption. Photo c/o Steven Villapondo via Facebook

Such calamities can do so much damage in your vehicle, resulting to expensive repairs. An Acts of God premium worth a couple of thousand pesos is an extremely inexpensive bargain over peace of mind. Estimated premium costs for the Acts of Nature cover is around PHP 6,000 to PHP 8,000 on a car that is worth PHP 1 million. This amount is a small price to pay compared to the hassle of dealing with a damaged vehicle.

Compared to other human-influenced coverage components of a policy, like Bodily Injury, Personal Accident and Property Damage, Acts of God is least predictable and could be the most ravaging, not to mention expensive.

How can I get this type of car insurance coverage?

When getting a car insurance quote, ask your agent if your premium already includes Acts of God coverage. Ask about the specific inclusions and how much it would cost you. If you compare car insurance quotes with Moneymax, Acts of Nature is free and is already part of the premium.

Read more:

• Car Insurance Add-ons You Need to Consider
• Basic Types of Car Insurance Coverage Explained

Final Thoughts

Don’t discount the importance of an Acts of God coverage. Make it a part of your car insurance policy. Know the best deals for you by comparing quotes with Moneymax!

Get a Free Car Insurance Quote!

Looking for car insurance? Below is a list of top companies and their features. Compare your options and get a free car insurance quote from Moneymax!

Car Insurance Company	Features
MAPFRE Insular	10 years of casa eligibility 366 accredited repair shops PHP 5,000,000 maximum total sum insured Overnight accommodation - Yes, up to PHP 3,000 Towing - Yes, up to PHP 5,000 Vehicle removal crane services - Yes, up to PHP 10,000
Malayan Insurance	3 years of casa eligibility 58 casa repair shops PHP 7,500,000 maximum total sum insured Overnight accommodation - Yes, up to PHP 1,000 Towing - Yes, up to PHP 4,000 Vehicle removal crane services - Yes, up to PHP 8,000
New India Assurance	10 years of casa eligibility 30 accredited repair shops PHP 3,500,000 maximum total sum insured Overnight accommodation - Yes, up to PHP 1,500 Towing - Yes, up to PHP 4,000 Vehicle removal crane services - Yes, up to PHP 10,000
Prudential Guarantee	10 years of casa eligibility PHP 3,000,000 maximum total sum insured Overnight accommodation - Yes, up to PHP 2,000 Towing - Yes, up to PHP 5,500 Vehicle removal crane services - Yes, up to PHP 15,000
SGI Philippines	5 years of casa eligibility 36 accredited repair shops PHP 5,000,000 maximum total sum insured Overnight accommodation - Yes, up to PHP 2,000 Towing amount - Yes, up to PHP 5,000 Vehicle removal crane services - PHP 10,000
Stronghold Insurance	10 years of casa eligibility 167 accredited repair shops PHP 3,000,000 maximum total sum insured
The Mercantile Insurance Corporation	10 years of casa eligibility 77 accredited repair shops PHP 5,000,000 maximum total sum insured Overnight accommodation - Yes, up to PHP 2,000 Towing - Yes, up to PHP 5,000 Vehicle removal crane services - Yes, up to PHP 10,000

Source: ^[1] Emergencies – UNFPA Philippines

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