The Importance of Car Insurance: 6 Benefits for Car Owners

Published: October 13, 2020 | Updated: October 19, 2020 | Posted by: Moneymax | Car Insurance


Importance of Car Insurance in the Philippines | Moneymax

You might think that car insurance is just another expense added to your monthly bills. However, vehicle 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[1].

2. It protects you from theft

The importance of vehicle insurance shouldn’t be ignored, especially when hundreds of cars are stolen yearly[2]. 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

importance of car insurance - flooded car

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. Auto insurance covers damages caused by disasters, easing the financial burden you might carry in times of a crisis.

Read more: 7 Flooded Car Problems to Watch Out for This Rainy Season

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

importance of car insurance - damaged car claims

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 vehicle insurance as an investment more than an expense that you will benefit from.

Read more: Got Into a Car Accident? Here’s What You Should Do

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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

importance of car insurance - compare your options

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.

Read more: Basic Types of Car Insurance Coverage Explained

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.

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Final Thoughts

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.

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