Busting the most common myths about car insurance
Updated on December 06 2023
METRO MANILA, Updated July 25, 2022 – Did you know that most Filipinos find it difficult to discuss car insurance?
It is one of those topics that they only discuss with a financial adviser over lunch or coffee.
Although many people know the importance of insurance coverage, others are often scared by the thought of purchasing a policy. Their reluctance is frequently motivated by two factors: concepts that appear complicated and the different assumptions about insurance.
However, any reluctance to obtain any financial protection, particularly car insurance, might cause problems, especially for those who want to buy a car in the Philippines.
The truth is, anyone who owns a car might face financial problems if he or she is driving without a vehicle insurance policy. Once caught by the authorities, he will pay certain penalties, as well as face legal issues in the event of a crash
If you are a first-time car owner and wish to insure your vehicle, you should do some research and get useful insights about auto insurance. This includes comprehending the factors that influence an insurance policy, the amount payable for various premiums and coverage that you can expect.
To help you, we're here to debunk some myths about car insurance. Keep these things in mind so you will not be scared or overwhelmed when obtaining a policy.
Car insurance is a high-cost liability
FACT: Contrary to popular belief, automobile insurance coverage is not an expensive liability.
Car insurance premiums, like other insurance products, are determined by a variety of criteria. These include the type and amount of coverage, the vehicle make, the model and the car's value.
In addition to that, driving habits and location, alongside the driving record of the owner, matter.
To get the finest policy, it is best to browse and compare car insurance plans given by various companies. As a result, you will determine the differences and similarities, giving you several choices in acquiring the proper insurance coverage. This will also help you avoid choosing a policy that includes unnecessary coverages.
Or better yet, start with the basic ones first. This way, you will be insured as early as today before you go up to the more comprehensive one.
You don’t need insurance for an old car
FACT: You must have insurance on your vehicle, whether it is old or new.
Before registering or renewing a vehicle, the Land Transportation Office mandates all car owners to have a Compulsory Third-Party Liability (CTPL).
According to Republic Act No. 10607 or the Amended Insurance Code (AIC), no motor vehicle may be registered or renewed for registration without proof of insurance coverage.
This means that you are required to get one to drive on the road lawfully. Besides, your vehicle needs financial protection regardless of its model or year of release.
Only the basic auto insurance coverage is necessary
FACT: While it is true that the law only requires basic coverage for car insurance, it may not be enough for you.
As the name suggests, the basic car insurance policy does not provide full financial protection. This means that it has various exclusions. Thus, it is highly suggested to purchase a comprehensive policy to get the best coverage.
This type of car insurance protects against risks like theft, personal accidents, unintentional collisions, property damage, fire and explosions in the vehicle and malicious acts committed by third parties.
Furthermore, comprehensive car insurance includes Acts of God coverage, which offers monetary help against damage caused by natural disasters.
Getting an insurance quote is difficult
FACT: With the prevalence of smartphones and other electronic devices, as well as the widespread use of the Internet, obtaining car insurance quotes from companies is easier than ever.
Just utilize the power of the internet to find various insurance services like what is offered by Assurance.PH! This allows you to speed up the process of shopping and comparing auto insurance coverage, making it easier to get the best plan for you and your vehicle.
You don’t need car insurance if you don’t drive often
Fact: Regardless if you go behind the wheel on a regular basis or only on weekends, you need financial protection all the time.
Take note, everything is uncertain nowadays, especially if you are driving on the road. Road crashes can happen anytime, no matter how careful you are.
There are instances that you will need some monetary help from a reliable company to help pay for car collisions or property damage that you are involved in.
Besides, your car also needs protection, especially if you own one a high-end car. The insurance firm will pay everything on your behalf, as long as you can provide all the necessary requirements for claims. You can get a new car if your current vehicle is no longer functioning after experiencing tremendous damage.
Now that you already know the myths about car insurance, it is time to step out of your comfort zone, shake off those misconceptions from your system and look for the best policy for you and your automobile.
If you are searching for the best deals, look no further than in Assurance.PH! We offer the best insurance policies in the Philippines, ranging from home insurance up to auto insurance policies. We also provide financial protection against COVID-19, perfect for the whole family.
While you're at it, you can look at the cars we have for sale at Automart.PH.
We offer a wide selection of used cars at great prices, ranging from compact cars to pick-up trucks, that suit your needs.
And if you’re looking for the finest used cars, check out Automart.PH Certified Used Vehicles. These are restored until they feel like new again. They also come with a three-day money-back guarantee and, for Gold Certified units, a one-year warranty.
Automart.PH Senior Content Creator VJ Bacungan contributed to this story.