The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
Do You Really Need Comprehensive Car Insurance?
With a lot of deals available when buying a new car, comprehensive car insurance is the one that you shouldn’t miss. While having a car insurance is not fully required by the law, it can be extremely valuable when everything seems to get out of the way. For novices, comprehensive car insurance serves as a protection from potential financial distress in case you get involved in an accident with your car, or you end up damaging other people’s property.
As stated earlier, comprehensive auto insurance is not required by the law. However, it is one of the most important requirements if you are securing a car loan from a bank, to which many of people do these days. This is because the car will remain their property until you pay it fully, and so they have to protect it should anything happen to it upon leaving the car lot.
Essentially, comprehensive car insurance has a wide coverage and insures you against damage, car theft, liabilities caused by collisions, fire, malicious acts, acts of God and natural calamities, and personal accident insurance of the passengers. While not mandatory, it is smart to get this type of insurance because accidents can happen to you anytime. If you plan to use your car on a daily basis e.g. driving to work, you’re exposed to a number of risks that you do not have direct control of.
Another reason to get a comprehensive car insurance is if you live in a region or country that suffers to strong typhoons and flash floods. If ever your car becomes inoperable after it gets flooded, comprehensive car insurance picks up the tab for repairs and does all the work for you.
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Benefits of COMPREHENSIVE CAR INSURANCE
Comprehensive car insurance is one of the higher levels of protection you can get for your vehicle. It is an assurance that will protect you as the owner from potentially suffering financial ruin should you be involved in an accident or should you be responsible for causing and accident and damaging another’s property.
It offers protection to your vehicle caused by accidents on the road as well as results of incidents that are unrelated to the road.
It covers you for incidence such as damage to your car, theft, legal liability, third-party cover, and accidental death or injuries of third parties.
WHAT DOES COMPREHENSIVE INSURANCE COVER?
As with all insurance policies, you should check with your insurance agent to make sure what perils are included under the comprehensive coverage of your auto insurance policy.
This cover incorporates third-party, animal, natural, weather, fire, and theft and accidental damage.
Comprehensive coverage usually has a lower deductible than a collision loss.
On the flip side, most of the insurance companies here in the Philippines do not provide coverage on the transpiration costs you will incur while your car is being repaired, nor provide a courtesy car.
However, it is your privilege as a client to ask for the latter since there are some companies who do provide this as an additional service that is usually not included on the comprehensive policy.
Compulsory Third Party Liability (CPTL) is the minimum insurance coverage required to have a motor vehicle registered. This covers any bodily injuries or deaths caused for up to P100,000.
Any excess to this amount will be shouldered by your comprehensive insurance provider.
Using car insurance comparison site like iChoose.ph allows you to compare multiple insurance brands, anywhere and anytime you want – allowing you to make a sound decision and more importantly, save money and time in the process.
Surprisingly, comprehensive coverage pays to repair only a few, very narrowly defined problems but these problems can be costly. Most of us don’t think about things that are unlikely to happen to our vehicles–things that are not impossible, but really uncommon.
It the event that it does, the damage can be devastating. Having a comprehensive policy will cover you for even the most unlikely of events. Like they say, it is important to have a backup plan.