6 Benefits of Auto Insurance

Car insurance could seem like another cost. It’s disappointing to pay for a year’s coverage and receive nothing in return. Ironically, you should be grateful. No vehicle insurance claims suggests you drove safely last year. Last year’s safety doesn’t guarantee you won’t have traffic accidents this year.

Vehicle insurance is often overlooked by new car owners and drivers. Vehicle insurance provides a safety net in case of accidents. You’ll never know how your auto insurance premium protects you, your family, and your automobile. You can’t avoid accidents, but you can protect yourself.

Read on to learn about auto insurance and how to select the appropriate one.

Car insurance’s purpose

Planning your automobile purchase may have taken years. You’ve considered color, manufacture, brand, and price every night for three years. You pondered whether a new automobile is too much or a used one would do. You’ve looked for ways to pay down bills and installments. Sometimes you couldn’t afford upkeep.

Automobile insurance is a good method to invest in your expensive, emotional, and hard-earned car.

Car insurance offers financial and liability protection. With insurance, you can secure your hard-earned investment. You won’t have to pay for third-party injuries if you’re involved in an accident.

Why Get Auto Insurance?

Car insurance can’t prevent disasters or accidents. Car insurance may save you money on repair and medical fees in the event of an accident.

Here are reasons to purchase auto insurance immediately.

1. Mandatory auto insurance

Every registered vehicle in the Philippines must have CTPL insurance. This coverage protects you against responsibilities to a third party—anyone other than a car owner’s passenger, family member, or household member. CTPL is a prerequisite for Land Transportation Office automobile registration (LTO). [1]

The LTO requires owners of both old and new automobiles to carry CTPL car insurance, which covers bodily injuries and death.

New car owners may not require comprehensive auto insurance for at least a year. Most new-unit insurance are free for the first year.

2. Prevents theft

When hundreds of automobiles are stolen annually, auto insurance is crucial. We’ve all heard tales about car thieves.

Everyone should be prepared for their automobile being repossessed against their will. Your insurance will cover a stolen or vandalized car.

Car insurance is essential. Broken windows, locks, and ignition systems are covered by insurance. Depending on your premium, the insurance provider may also cover your car’s worth.

3. Covers disaster damage

The Philippines average 20 tropical storms each year, with 5 being destructive. Filipinos generally carry food and emergency supplies in bags. We also make our dwellings flood- and storm-proof.

Flooding and other natural calamities are harder to prevent. Floods and earthquakes might harm your car.

Auto insurance protects you against storm damage. Auto insurance protects catastrophe damage, lessening financial burdens in a crisis. Acts of nature or acts of God are terms used in auto insurance.

Depending on the insurance provider, acts of nature or God include volcanic eruption, earthquake, landslide, flood, and civil unrest.

4. Upfront costs may not be necessary

In the case of an accident, automobile insurance may cover repairs and hospitalization. Some insurance providers pay travellers’ medical costs.

Damage to the car may be covered. Your insurance coverage may cover all or part of the repairs. When you and your car encounter difficulty, contact your insurer to lodge a claim.

5. Claiming Is Easy

Comprehensive auto insurance makes submitting claims easier. Your insurance carrier will provide a list of claim criteria. They’ll also provide you automobile instructions, a list of certified repair companies, and a list of required paperwork.

After meeting all conditions, your claim will be processed.

6. Insurance saves money

If you don’t have automobile insurance, you must pay for repairs and medical expenditures. These expenditures may also cause mental anguish. Consider auto insurance an investment rather than a cost you’ll profit from.

What’s the best auto insurance?

Choosing the correct vehicle insurance company may be complex and daunting. Here are some vehicle insurance considerations.

Needs assessment

Prioritize auto insurance for you and your vehicle. If your automobile is pricey or you want additional protection, you may need to acquire more coverage.

Compare and shop car insurance

Discuss vehicle insurance with family and friends. Know their insurance company experience, particularly with claims. Your family may recommend firms to investigate. Shop around, however. Moneymax is a useful online comparing tool.

Car insurance features and benefits

Some auto insurance coverage provide extra perks. First, compare market policies. Before purchasing vehicle insurance, acquire as much information as possible. So you can make the appropriate choice.

How can I save on auto insurance?

Price is one reason some automobile owners don’t insure their vehicle and are unaware of comprehensive coverage’s advantages. Depending on the vehicle make and type, a car owner should budget at least PHP 10,000 year for security. SUV insurance may cost up to PHP 30,000 annually, depending on coverage.

Can auto insurance be lowered? Yes, definitely. Some tips:

1. Consider Multi-Car Insurance

Car insurance providers offer multi-car discounts to policyholders. Retail is more costly than wholesale. Buying insurance in bulk for many cars and drivers helps save costs.

2. Don’t Overdrive

How many kilometers has the car gone in a year is a key issue for insurance. Mileage indicates vehicle use. If your odometer is low, your coverage may be cheaper.

Using public transportation is one strategy to reduce your car’s mileage. Due to the epidemic, it’s not a good form of transportation. If you don’t like traveling with people, remain home, conduct your work online, and keep your odometer down.

3. Drive safely

Insurers are also interested in your claim history. Accidents result from vehicle insurance claims. Accidents usually indicate a driver’s riskiness and hazard.

Some insurance providers check your demerit points[4] for traffic infractions. High demerit points raise your risks and your premium.

4. Anti-theft devices

Anti-theft gadgets cut your premium and increase your safety. Anti-theft systems give insurance reductions. Insurance agents might propose a basic auto alarm and vehicle camera.

When installing protective equipment, consider cost. If your main goal is to minimize insurance costs, compare the anti-theft system price to the premium discount. Is locating and installing anti-theft devices worth the hassle?

Summary

No one wants a vehicle accident, but you shouldn’t overlook auto insurance in the Philippines. Safety first! Having auto insurance means you won’t incur many fees after an accident. It’s an extra investment, but it’ll provide you piece of mind when driving.

Leave a Reply

Your email address will not be published.