Why You Need Car InsuranceBy Randell Tiongson on April 26th, 2016
In 2010, payment for Acts of Nature insurance increased by 11.5%, from Php 12.1 billion in 2009 to Php 13.5 billion in 2010, a year after tropical storm Ondoy hit the country. After the destruction the storm left, more Filipinos saw the value of car insurance, particularly the Acts of Nature coverage, which is insurance provided for damages cause by natural occurrences, such as floods, typhoons, earthquakes, and the like. As a whole, car insurance, which includes Acts of Nature coverage, provides multiple benefits to car owners.
Here are 3 reasons as to why you need car insurance if you don’t have one yet, or are unsure whether you need one.
To protect yourself
Vehicular accidents can cause a strain not only on your pockets but your emotional well-being. Having car insurance in the event of a car accident gives you the peace of mind that you have the capacity to cover the damages. Whether you need Php 20,000 to replace your bumper or a million Pesos to buy a new car if your old one is totaled, having a car insurance policy takes away the stress from having to shell out money during an accident. Imagine having to deal with an irate car owner whose vehicle you hit, shelling out money to cover repairs, and carrying on with life sans your vehicle which you use on a daily basis. Car insurance offers stability and gives you the peace of mind that you can handle unfortunate car-related instances that come your way.
To protect others
Comprehensive Third Party Liability (CTPL) insurance is a requirement of every motor vehicle before it is registered with the Land Transportation Office (LTO). CTPL provides protection to passenger-victims and third-party victims and offers death benefits, funeral expenses, and hospital reimbursements. In the unfortunate event that you experience a minor (or major) accident and are liable for the injuries you caused to passengers or non-passengers affect in the collision, your CTPL provides financial assistance to cover incurring costs.
To protect your vehicle and pockets
Regular car maintenance does add up. A single part replacement will cause you from the low- to the high-thousands depending on the damaged part. What more if your vehicle needs major repairs or a replacement? This will cost you in the hundreds of thousands and even in the seven-digit range depending on your vehicle and the damages. MoneyMax.ph, a financial comparison website for car insurance, wrote an article entitled, 3 Real-Drivers Saved by Car Insurance, wherein in one account, Rowyn, an owner of a Montero Sport which hit a taxi which then collided with an Isuzu, was given Php 500,000 by her insurance provider for paying Php 9,000 in annual premiums. If you had to shell out Php 500,000 for car repairs and damages, where will you get the money if you didn’t have car insurance? How much of a strain will that cause to your emergency funds? As mentioned above, car insurance provides you with financial security. You may be paying your coverage monthly, but in the event you need to make a claim, your annual premium is loose change compared to your coverage.
For those looking for financial security, car insurance, and life and non-life insurance in general, takes you one step closer to financial stability. Having insurance protects your emergency fund and other financial accounts you have because in the event you need a large amount of cash, your insurance policy will give you the coverage. Unlike if you didn’t have insurance, one unfortunate accident can wipe more, if not all, your savings. If you’re thinking of insuring your car, MoneyMax.ph provides a personalized platform where you can filter different insurance policies according to your specific car make and model. It’s best to use comparison websites first before applying for a policy so you can do your research and find the most affordable and beneficial coverage for you.
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