Getting a car insurance seems to be a must nowadays. You will never know when will you need it especially if you are driving in the Philippines where some of the drivers don’t know the proper guidelines in driving leading to accidents.
For car owners, registration with Land Transportation Office (LTO) means you should have gotten a Compulsory Third Party Liability (CPTL) car insurance as this is mandated by law. This basic insurance coverage protects against possible bodily injuries to third parties, which may refer to any person other than the passenger, family member or a household member of the owner of the vehicle, covering up to maximum of P100,000.
However, this may not be enough as it only covers any person that maybe injured by the driver. The car itself is not yet insured. And that is why many non-life insurance providers also provide comprehensive car insurance. Most are renewable annually but some companies provide short term coverage such as Dayinsure.
When getting comprehensive car insurance, consider reading the fine print to get into the details of the coverage. Here are some of the clauses you can look for.
Personal Accident. If you are using your car daily to go to office, for example, you might as well include this coverage. This will provide you an amount that you can use for hospital expenses for any injuries that you might sustain in case you encountered a road accident.
Medical Reimbursement. Some insurance companies include this coverage where you can reimburse medical expenses you incurred from injury related to road accident.
Acts of God or Acts of Nature. If you are residing in a flood-prone area or neighborhood, then you must consider including this in your car insurance coverage. This includes earthquakes, typhoons, flood and other convulsions of nature.
Property Damage. This coverage helps pay for the damage that you as the driver or vehicle owner cause to another vehicle, or other types of property.
Other add-ons to your coverage may include riot-related damage, roadside repairs and towing.
Participation Fees. One of the most important clauses which are often overlooked is the participation fee. This refers to the amount that the car owner needs to pay first before they can make an insurance claim which is deductible in the repair expenses to be shouldered by the car insurance company. This is usually equivalent to 0.5% of the car’s current market value.
For example, a car with a market value of P750,000 was involved in a road accident and the repair costs P30,000. You would need to pay the car insurance company P3,750 first before you can make an insurance claim. That amount is deductible to the total repair costs so they will only shoulder the remaining P26,250.
Before you buy your car insurance, make sure to read the fine print in detail. In addition, compare premiums objectively before making your choice of which company to avail it. Search the net or ask feedbacks from friends on the claiming process. Some companies may offer low rates but the claiming process may be hassle and difficult.