This Is Why Comprehensive Car Insurance Is A Must
Updated on September 30 2023
There are constant reminders of comprehensive insurance everywhere. These are on billboards, pop up on your Facebook feed, and your email. Insurance agents will also occasionally throw sales pitches at you in the shopping malls or even in the lobby of your office building. People balk at the thought of buying car insurance. Many look at it as an additional expense on their part. It may be an expense but a necessary one.
When someone offers you comprehensive cover, the first thing you will tell them is “I don’t need one, I have TPL.” But is your coverage enough to shoulder the costs you will incur during an accident? Yes, it isn’t as pricey as an insurance policy, but it does not protect you from everything. TPL only offers financial protection from injuries, death, and property damage from a third party, but what if you get injured; or your vehicle gets damaged during the accident? The hospital bills, medical expenses, and cost of repair may be too much for your pocket.
It is why comprehensive insurance is a necessity. It protects you from accident-related costs, as well as your passengers and your vehicle. TPL only offers select liability, but car insurance offers a better package. A policy may be expensive, but the benefits will kick in the long term as long as you are covered.
A Need and Necessity
Car insurance provides you with a safety net in times of unfortunate accidents. Nothing can be more frustrating than paying for a year’s worth of policy but not getting something in return. But isn’t it something you should be thankful for? Not getting involved in any road mishaps means you traveled safely during the year. However, that does not mean it will always be safe traveling the following year or the next. That is why it is better to be safe than sorry.
But car insurance goes beyond coverage during road accidents. Here are other reasons why having insurance is a necessity for car owners like you:
It Is Required By Law
The first reason you should get car insurance is that it is a requirement by law. Every time you register your car, the Land Transportation Office requires you to get basic Compulsory Third Party Liability or CTPL as protection against possible third-party liabilities. A CTPL offers protection from bodily injuries and property damage. Under the law, CTPL provides P100,000 insurance coverage for a third-party victim, only. In addition, CTPL carries a “no-fault” clause that entitles the third party to a maximum sum of P15,000 without proving negligence.
After purchasing a CTPL insurance policy, you will receive a Confirmation of Cover (COC) proving that your car has a third-party insurance cover. The COC shows details such as the name of the assured, details of the vehicle like serial number, chassis number, plate number, color, and limit of liability. The insurance policy also details the schedule of benefits such as death, funeral expenses, permanent disablement and dismemberment, and medical and hospital reimbursement limits.
It may not seem like it, but car theft is rampant in the Philippines. Data from Statista reveals that in 2018, there were 4.6 cases of car theft per 100,000 population in the Philippines. In 2019, car theft incidents still reached 22,500.
While you will do everything possible to prevent your car from being stolen, it is better to be prepared for any eventualities. Even if it gets recovered, you will likely spend money on broken windows, locks, and ignition systems. With car insurance, your provider will cover the cost of these repairs. Depending on your policy, your insurer would likely cover the current value of your car.
Acts of God and Nature
An average of 20 tropical storms hit the Philippines every year, five of which are destructive. While we can stock food and emergency kits and ensure that our homes are strong enough to survive flooding and cruel storms, it can be more difficult to protect your car from flooding and other natural disasters. Natural calamities like floods or earthquakes can easily damage your ride.
Most insurance policies cover disaster-related damage which you could sustain as a result of flooding. Some insurance include Acts of God (AOG) or Acts of Nature (AON) in their car insurance packages. Some AOG and AON policies also provide cover volcanic eruption, earthquake, landslide, flood, and civil commotion.
Although your TPL will cover property damage, injuries to another person, or death, it may not be enough if the third party holds you accountable for the injury or damage to their car or property. When you are sued by a third party, it means you will have to pay legal fees as well.
Liability insurance may not cover attorney’s fees but car insurance will. Legal fees may exhaust the allowable limits of your liability insurance. Without a car insurance policy, you may have to cover the costs out of your pocket.
Your Passengers are covered too
Liability insurance only covers damages or injuries that a third party will incur. But what if the accident resulted in injuries or death to your passengers or damage to your car? Surely you can pay from your pocket but will your funds be sufficient to pay the repair of the car and hospital and medical expenses of your passengers altogether? A car insurance policy will shoulder medical bills and hospital expenses that you will incur due to the accident.
With car insurance, you don’t have to worry about the hospital bills and medical expenses of your passengers during the accident. Your insurance provider will shoulder all the costs within the limit specified in the policy.
Owning and driving a car has its risks. When you get involved in an accident, it is given that you will entail a lot of expenses. Why pay from your pocket when an insurance provider can do it for you? Car insurance is a worthwhile investment and can save you from the many hassles associated with car accidents.
Assurance PH is here to help you find the right car insurance policy that suits your needs. We are your partner in protecting your car and passengers. Talk to an AssurancePh advisor for further details.