This post was written by Erwin Reyes, who has a combined experience of more than 15 years in the car insurance industry in the Philippines and Australia.
One of the most crucial aspects of being a car owner is to ensure that our vehicle is covered if we are involved in an accident. While car insurance seems more a pain than a benefit to first-time car buyers, there are compelling reasons why it’s important.
Most likely, the state or region you live in and drive frequently impose rules and regulations that require you to have a certain amount of auto insurance on your vehicle, which also varies from state to state. While other states only require you to have minimum liability, there are states that require you to cover more than that.
When authorities find out that you are driving a car without insurance, you are running the risk of having your car impounded on the spot.
In fact, there are states that will not allow you to continue driving once they know that your car is not insured. Also, not only will your car not be impounded, you will also have to pay heavy fines and fees.
At worst, the authorities may also have your driver’s license suspended or revoked for a certain period.
But aside from legal repercussions, car insurance protects you from personal liability in case you be in an accident. And this is the main reason why you should definitely get a car insurance.
For instance, if you accidentally crashed into another car, you can be held personally responsible for the cost of medical bills if a person is injured, and very large sum if a person is killed. You will also have to shoulder all the expenses for the damages which have been caused by the accident.
Unless you’re someone who is rich enough to cover these indemnities, you may need to sell your business, your home, or any other assets just to pay the cost. Depending on the intensity of the damage you’ve caused, you might end up spending the rest of your life paying them off.
But what about the damages to your car? Who’s going to pay for it?
That’s where comprehensive car insurance comes in.
With a comprehensive car insurance, you can claim from your insurer for accidents that are deemed to be your fault, as well to those when fault cannot be proven. E.g. if you return to your car after eating in a restaurant to find that someone has vandalized it.
With a comprehensive car insurance, you will be able to retain your peace of mind in case your car gets flooded, scratched, or stolen.
To sum it up, here are the main takeaways from the infographic below from iChoose.ph which argue why every car owners must have a comprehensive car insurance in their standard policy.
What does a comprehensive insurance cover?
Coverage varies from policy to policy. But essentially, a comprehensive insurance incorporates third-party, fire and theft cover, as well as accidental damage to your car.
- Weather and Natural Calamities
- Animal Damage
- Lower Deductible
- Expense in Excess of CPTL
To learn more about this topic, check the infographic below: