These days, owning a car is necessary. It not only gets you from Point A to Point B, but it can also be a source of livelihood by registering the vehicle with a ride-sharing or delivery app. And while many people recognize that cars are an asset, only a few do something to keep theirs protected.
You may have this impression that it is okay to drive without insurance. But the road is full of forks, twists, turns, and other unpredictable variables. Having a car insurance policy will help reduce risk and even neutralize the effects of an untoward incident.
This guide will help you understand the consequences of not having car insurance. Along the way, you will also be able to pick up some insights on how you should choose the right car insurance policy.
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The Consequences of Driving Without Car Insurance
You may already feel some sense of security with a compulsory third-party liability insurance or CTPL. This type of car insurance is required by the government, and if you get involved in an accident without one, you will have to pay a penalty. However, CPTL is a basic car insurance policy that only covers third-party victims. Basically, CTPL only covers the injury or death of a third party involved in the accident. On the other hand, the insurance holder, which is you, will not be covered.
Apart from this, here’s what might happen if you don’t insure your car.
You Have to Settle Upfront Costs
In the event of an accident, you will be obliged to pay for the expenses in case you and your passenger get injured. Whether the amount is small or big, the fact that you will be covering for your own accident (which could have been avoided with the right car insurance) is already a headache. A comprehensive car insurance can cover most, if not all, of the expenses brought by a vehicular accident.
You May Face Legal Charges
And when you cannot pay for the damages that you have caused, you may face legal charges. If you’ve been proven to be the origin or the root cause of the accident, you may be charged with reckless imprudence resulting in damage to property. Things are also much worse when someone dies in the accident. Obviously, all of these are more than stressful.
You Have to Pay for Expensive Vehicle Repairs
Accidents also damage your car. Things will be tough for you when you don’t have a policy to cover the cost of repairs. This is one of the most common consequences of driving without car insurance. Again, the expenses incurred for fixing your car will come from your own pocket. In case you don’t have enough money for repair, you may not be able to use your car any time soon. Using your car when it is not in good shape has another set of consequences.
Dealing with the aggravated and affected third party may also take time, especially if you’re trying to figure out where you will get the money to fix the issue. With the right car insurance, however, it might only take a day up to a week to get things done (that is if your insurance provider has a very streamlined deployment system).
Your Business Might Get Affected
In case you’re using your car for your business (e.g., carpooling and deliveries), your profits will be affected. You can’t make money when your machine is faulty; it’s like a coder losing his trusty personal computer or a baker who is dealing with a broken oven.
In a nutshell, the stress and time wasted brought about by the absence of a car insurance policy are definitely not worth it.
How to Choose the Right Car Insurance for You
Not all car insurance policies are created equal. So, you should not use a cookie-cutter approach when picking a coverage. What may have worked for others may not work for you. Similarly, what works for you may not work for other people.
The first thing that you need to do when picking car insurance is to know your priorities and needs. The second step is to know the types of coverage available in the market today. You already have the mandatory CPTL, so complement it with a more robust policy.
Policies with the most expensive premiums may not always be the best for the car owner. So, assess the risks that you will possibly face in a thorough and detailed manner. That way, you will be able to determine which coverage plan is the most cost-efficient.
For instance, if you live in a neighborhood with a high crime rate, you may get a car-theft policy. Similar policies may be able to pay for the repair and replacement costs due to the following: acts of vandalism, stolen car parts, robbery, and carnapping.
If you live in low-lying areas that are prone to flashfloods and other incidents caused by typhoons, a policy that includes an Acts of God coverage will make a sensible and practical choice.
Compare and Choose the Right Car Insurance Provider
Now you may be overwhelmed by the number of car insurance providers out there. There are banks, and there are also independent providers. Do not just go for the one that you have come across first. You need to find a provider that has packages that suit your lifestyle and the types of risk you face every day. Moreover, practicing due diligence will also keep you from dealing with scammers.
Below is a list of car insurance providers to start with.
- Charter Ping An Insurance Corporation
- Malayan Insurance Company, Inc.
- FPG Insurance Co., Inc.
- BPI/MS Insurance Company
- Standard Insurance
- Oriental Assurance Corporation
- The Mercantile Insurance Co., Inc.
- Pioneer Insurance & Surety Corporation
To get the best possible deal, use online comparison platforms, such as Moneymax to help you compare prices and policies. Don’t go for the first car insurance provider you see. Take the time to compare to ensure you get the right car insurance for you.
Read more related articles:
- Killer Highways: 10 Most Accident Prone Roads in the Philippines
- What is Roadside Assistance in Car Insurance and Why Should I Get It?
- 6 Reliable Auto Repair Shops in Metro Manila for Car Repair and Maintenance
A car can take you to many places, and it definitely makes your life convenient. But you need to remember that the road you’re driving on is full of uncertainties and dangers. To protect yourself from the consequences of driving without car insurance, you need a shield, which in this case, is a car insurance policy. You may not need it right now, but are you going to wait for something to happen before you get yourself covered?
So, if you’re going to ask, “Is it okay to drive without insurance?”, the answer is a resounding “no.” Talk to an agent today.
-  9 tips for those who want to claim under compulsory 3rd-party liability insurance (Consunji, Top Gear, 2016)
-  How to Choose the Right Level of Car Insurance (Cruz, Carmudi Philippines, 2017)
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