3 Major Reasons Why Pinoys Ignore Getting Car Insurance

by Moneymax, on category "Car Insurance"

March 17, 2017


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Whenever you purchase a car, you’re required by law to get car insurance. The required policy is called the Compulsory Third-Party Liability cover, and this generally helps out by providing protection for third parties involved in case of an accident. This is necessary in order for you to be able to register your car.
The thing is, there’s a misconception that the CTPL is enough when it comes to protecting your car. It’s not. There are more reasons why Pinoys ignore insurance than a misconception regarding one cover, and here’s a look at some of those other reasons.

Cultural Background

Did you know that the Philippine National Police-High Patrol Group (PNP-HPG) recorded 10,000 vehicular accidents from January to April last year? It’s alarming enough considering the fact that the larger roads in the country tend to clog up with traffic.
Filipinos have been brought up to believe that everything happens for a reason, and a myriad other myths that stem from the general culture. A glaring example of which is that female drivers are less competent on the road – which is blatantly sexist, but also somewhat hard-coded into the male populace.
The same can be said about the way insurance is discussed, at least beyond what is required by law.
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Financial Barrier

Though more and more Filipinos are getting insurance to protect their vehicles and their lives, getting insurance beyond the CTPL isn’t high on most car owners’ priorities.
More still will consider the price of insurance as a justification not to get additional coverage. According to Top Gear, you’ll spend about 2.25 percent of your car’s fair market value every year for the first three years you own the car. From that perspective, you might think that getting more insurance just adds to the expenses. Our culture dictates that the basic needs to survive be met as opposed to being ready for any possibilities.
It’s true, more insurance means a pricier quote, but it also means not having to shell out any money if your car is damaged due to circumstances out of your control, such as floods or earthquakes.
Risk Calculation

Risk Calculation

Some Filipinos who have higher purchasing power than others will prefer to think of risks and how to avoid them. Some who thinks they are practicing safe driving and obedient with traffic rules will often ignore insurance because they think they can avoid it.
Look at it like this: driving on a daily basis exposes you to risk factors that can lead to accidents – many of them out of your control. Driving down EDSA means you’re facing 2 million other vehicles, 27,000 of which happen to be buses.
Careful driving can only get you so far. When you buy car insurance, it isn’t just so you’re prepared for accidents you might encounter on the road. There’s the possibility of theft, vandalism, and the fact that the country experiences an average of nine tropical storms a year. Covers like “Acts of Nature” and “Theft” can help you with the cost of repairs, or replacing the car.

Final Thoughts

Filipinos ignore the importance of insurance because there are too many other factors to deal with when it comes to getting car insurance. Most will view it as a time-consuming process to undertake or worse, an unnecessary expense.
This is where comparison platforms come in. Their job is to assist people who need car insurance through the process, to help educate people on why car insurance is necessary. If you’re looking to get more insurance, look no further than the button below.
Free Car Insurance Quote | MoneyMax.ph