I don’t need car insurance!
As a matter of fact, it is actually required for you to have insurance. LTO requires a car owner to have Compulsory Third Party Liability (CTPL) as the bare minimum insurance coverage for your vehicle. Considering that you need car insurance upon registering/renewing your car with LTO, you simply can’t pass on having car insurance for your vehicles.
Car insurance is too expensive!
It’s not as expensive as you think. Researching the coverages that you want for a policy goes a long way in pulling down the price of your premium. The price of the premium is dependent on the number of coverages that you availed on and you might deem some of those unnecessary. Optimizing your policy based on your needs will save you some money.
I’m covered if my car gets damaged by natural disasters, vandalized, stolen, or totaled.
This mostly depends on the coverage you availed for insurance. If you availed for a Compulsory Third Party Liability (CTPL) insurance, then sad to say, you won’t be able to claim anything. Now if you availed a Comprehensive Insurance policy, then it would be a different story. Comprehensive Insurance provides financial protection for damages to your vehicle which aren't your fault, and are beyond your control including malicious damage, theft, vandalism, fire, riots and other non-natural events. In the case of Natural disasters, you will have to extend your insurance policy to one that covers “Acts of Nature” as this covers you from damages that occur due to flooding, typhoons, earthquakes and other such natural disasters ---a very crucial option to consider here in the Philippines.
CTPL car insurance is cheaper for me.
If we’re talking about the cost of the premium, then the statement is true. However, it may bite you back in the long run with larger expenses. Considering the risks that come in driving, it’s a risk to only have the minimum coverage for your car insurance.
For one, if you manage to damage your car, you’ll be the one paying out of pocket for the repairs. If you happen to cause some damage to other people, you’ll end up paying for those too.
You also need to consider the fact that the Philippines is a tropical country, natural disasters are always expected on a year to year basis. CTPL doesn’t extend their coverages to those kinds of damages, but a Comprehensive insurance policy with an “Acts of Nature” extension does.
Other than that, you also need to understand that CTPL only covers third-party victims, if you hurt yourself or your passengers in the event of an accident, you aren’t covered. If parts of your car were stolen or vandalized, you won’t be able to file a claim for that either.
Car Insurance covers for valuables inside the car.
Sad to say but comprehensive car insurance doesn’t cover valuables inside your car such as electronics, cash, jewelry that may be damaged, vandalized or stolen. You can avail of an add-on called Personal Effects coverages that insures the belongings you have in your car.
If someone else drives the car, their insurance covers my car!
If you were to lend someone your car and they cause an accident with your vehicle, your insurance will cover the damages, not that person’s insurance.
Claims processing is such a hassle!
This misconception no longer holds any truth in this day. Insurance agents hold your hand in the insurance application process and will also help you in your claims. Given that you have submitted all the required documents for a claim, the claim period should only last for three to seven days.
Making a claim will raise my premium for the next year.
Car insurance companies evaluate factors such as the frequency you file a claim, the amount you pay for a claim and whether it was your fault or not. Your car insurance premium will most likely stay the same as it usually is, unless they deem that you’re a high-risk individual due to filing an expensive claim, or multiple claims in the span of a year.
The color of the car will affect my premium.
Insurers make use of factors such as the vehicle’s year, make and model, body type and other information. The color of your vehicle isn’t one of them.
Assurance.Ph is your partner in providing protection for your vehicle, property, and passengers in the Philippines. Together with Automart.Ph and Motomart.Ph, we help car and motorcycle owners choose the protection package that suits their needs and budgets, and ensure easy and affordable access online and offline. Chat with one of your Assurance advisors via Viber (0956 302 9631) or email us at firstname.lastname@example.org to know more about the insurance packages that Assurance.Ph offers.