10 must-know things to consider before buying car insurance in the Philippines

Question is whether the convenience of insurance is forgone over the troublesome settling of traffic accidents which is a fact of life. Another is getting Compulsory Third-Party Liability or CTPL is opted for; but is it enough? No, when weighed against full-coverage auto insurance then it makes sense. Especially if only to protect the investment made on a new automobile!

In this article, Philkotse.com will gear car owners with essential knowledge to know what is the real deal on car insurance! Once getting and renewing auto insurance, and what the fine print is. Small stuff like what everything will cover and what isn’t, also what not said.

All of it; just to get everything out of any car insurance policy is a smart move for any car owner. The policy won’t reveal everything that’s due to anyone but there fewer aspects that aren’t common knowledge.

I. Benefits of car insurance

If the worst does happen and it really does cause a major headache, what advantages does it provide? 

• Covers all damages; whether caused by another party or by the policyholder. All insurance claims will be processed to pay for all damages, but full coverage is the best option!
• A new auto that is expensive will benefit from having car insurance. If any new car is damaged or has been totaled; it will be paid for but will depend on the policy of course.
• It simplifies paying for damages, and in cash but without it can be worrisome.

Getting car insurance is having all or some bases covered; mostly is an assurance of a backup should finances be strained a bit!

>>> Also check out:

• Car insurance in the Philippines: Comparison of Comprehensive & Liability insurance
• Lemon Law in the Philippines: 10 most FAQs of Filipino car owners
• What kind of car insurance in the Philippines fit you the most?

II. Essential knowledge about car insurance

Here’s the nitty-gritty and what may not be common knowledge about car insurance that isn’t told. It pays to clarify them if they are included; nothing is missed at all or neglected. All this will benefit the policyholder; and not allow any deception on all benefits that should be part of the duties of the insurance provider. 

1. “No-Fault” Clause

This is misunderstood especially when other cars are bumped or scratched, and it is a common misperception that “no-fault” means no liability at all! That’s so mistaken; because any accident is someone’s fault. No such thing as faultless because there is a fault, no matter who did it and someone’s got to pay!

Should this apply to any policy, because the company will iron out the claim and do it promptly? It’s one of the perks that make it easier when owning a car. Sometimes; it can be avoided, but it does happen.

"No-fault" is commonly misperceived with no liability at all

2. Beyond Just Accidents Cover

Now, everyone would love this feature of full auto insurance coverage. It concerns more than random accidents that happen most often. When certain events occur like some acts of god or natural calamities like monsoons, floods, and other tragic nature related mishaps. Other acts that are covered are man-made calamities, even some extreme happenings as well! If this is included as an option in any policy; then it’s good, and coverage is complete.

You can avail of insurance coverage against natural disasters like floods

3. Accident Shield or worst scenarios

If the worst is realized and accidents result in injury or even total disability, there will be compensation incurred automatically. Though should it happen when an accident will result in a loss of life; this will be covered as well. One of the best insurance covers to possess that may or may not be included in the car insurance policy.

4. Car insurance companies will differ in rates

The job of car insurance companies is to insure, and that does vary from each one! It cost money to ensure cars, and their monthly premiums are all you need to know about car insurance. It pays to shop around check; what insurance provider gives the best perks with a good price. Don’t settle for just a few; and just check out everything that can be checked, then decide.

UCPB Gen is now one of the strongest players in the non-life insurance business in the Philippines

>>> You might want to read: Which is the best car insurance company in the Philippines?

5. Zero Depreciation option for car

As the car ages; there will be more maintenance needed, and that will add to expenses for the car owner. But, this helps to alleviate costs by having the same rates as if brand new, maybe with a small increase. This simply means that if the car is old; then what is paid for is not the actual age of the car. Zero Depreciation equipped policies will be good as the auto gets old when others would pay more, but an equipped policy won’t!

Zero depreciation cover the damage when the car is getting old

6. Engine Protection coverage

Should the engine be damaged by accident, floods or acts of nature that might be part of the policy conditions; this will pay for all the repair costs and maybe even totally overhaul. It costs to have engines repaired; with policy coverage, there is more security and nothing goes out of the owner’s wallet.

7. Car owner's age is a factor for car insurance

Insuring cars is a risky business, and there are demographics to consider, and that applies to those considered high risk. Compared to younger males at less than twenty-five years old, to females at the same age. Most young males are deemed risky because of how old they are. If the client is at thirty-five years old and married with a regular paying job; the older male is considered a safer option and get a lesser premium. But, that is dependent on how any car insurer regards their clients.

Example of average car insurance rate by age

8. The car model determines the premium

Having a car repaired and restored will cost car insurance companies; they have preferences which has the lower premium. If the car to be insured is a luxury car and not just premium car; it will cost more than a cheaper car. In a nutshell; the more expensive car will have a higher insurance premium compared to a less expensive car.

The more expensive your car is, the higher your car insurance premium is likely to be

9. Never attempt to modify a car with a full-coverage policy

Once the car is covered by a policy; never upgrade or change the stock condition of it! When it is done; the policy will be negated, and any accident-related damage will not be covered.

When the car is already covered, please don't modify or upgrade it! 

10. Insurance claims will raise later premiums

Even if the car is fully insured; it does not mean that everything is all covered despite the full coverage policy. These companies don’t like having a client who has frequent claims because it costs a bit. Should this happen; the client is high-risk and will be given higher fees.