CAR
INSURANCE
Why It's Worth Getting Comprehensive Insurance?
Car owners balk at the word comprehensive insurance. When someone tells them to get one for their car, the first thing that comes to their mind is “Do I need it?” or “Is it worth it? Immediately, they think of it as an expense. While the state may not require you to have comprehensive car cover, lenders or brokers may require one especially if you are financing or leasing your car.
While you might think of it as an additional expense, comprehensive insurance does serve a very good purpose. Yes you are paying for the premium but along with it comes peace of mind that you don’t have to shell out money from your pocket to pay for repairs or damages in case of accidents. If you are having second thoughts about getting comprehensive insurance for your car, this article will guide you in making an informed decision.

CTPL vs Comprehensive Insurance
While comprehensive insurance is optional in the Philippines, compulsory third party liability or CTPL is a requirement for car registration. From the name itself, you get the idea that CTPL provides compensation to a third party in case of an accident. It is a liability insurance that covers damages or injuries incurred by other people.
Comprehensive insurance provides a wider coverage as it also shoulders the cost that you or your passengers will incur during the accident. This type of coverage goes beyond just hitting someone as it also protects you from other types of incidents. You can even file for a claim if you inadvertently damage your car.
Although comprehensive insurance is not required by Philippine laws for car owners, it will be a good idea to get one for the above reason. It can provide you with extra protection as it can cover personal injuries or death that you, your family, or a third party will incur.
Why Does Comprehensive Insurance Make Sense?
You would think that a CTPL is already enough because you think about safety when driving. But there are others who are not. Your CTPL will only cover you as much as its limits can take. With comprehensive insurance, your expenses for repairs, collision, damage, theft, floods, or landslides will be shouldered by your provider.
Without an insurance premium, you will have to pay for any damages or injuries out of your pocket. When the bills and expenses pile up, you could end up regretting not buying a comprehensive policy. Your premium will save you money as the insurance company will take care of the expenses depending on your coverage.
What Protection Will You Get From Comprehensive Insurance?
The type of coverage will vary from one insurance provider to another but here are some examples of protection your policy will offer:
- Own Damage and Theft Cover. This feature will pay for the cost of car damage or in case the vehicle is stolen.
- Acts of Nature/Acts of God. If you live in an area prone to natural calamities like floods, typhoons, and earthquakes, this coverage is a must.
- Personal Accident. This is separate from the required CTPL as it covers any medical expense, disability, or death that you or your passengers will incur in an accident.
- Loss of Use. This coverage pays for additional expenses while your vehicle is being repaired after an accident.
What Affects Your Comprehensive Insurance?
Unlike CTPL, the cost of your insurance premium will vary depending on certain factors which may include the following:
- Car Model. The fancier your vehicle, the more expensive is your premium
- Make. Luxury and foreign vehicles usually are more costly to insure
- Year. The older is the car, the cheaper to insure
- Usage. The amount of wear and tear in your car will affect premium
- Accessories. The number of accessories also impacts the amount of premium
- Safety Features. The safer the car, the cheaper is the insurance premium
- Fair Market Value. The cost of the car according to its model and series can also affect the amount of your insurance premium
- Depreciation. The older your car, the cheaper is the premium you will get
What Are The Requirements For Getting Comprehensive Insurance?
Once you have finally decided to get comprehensive insurance for your car, take note of the following requirements:
- Original vehicle receipt
- Certificate of Registration
- Driver’s license
- Valid government ID
- Photocopies of each document
Owning a car entails some responsibilities. When you are on the wheel, safety should be your top priority. But accidents can happen out there. With a comprehensive insurance, your worries about expenses will be taken cared of by your insurance provider.