They say the roads of Manila are as fierce as a jungle and as stressful as your worst nightmare. But Filipinos traverse these roads daily, a no-choice situation for many. The hybrid work situation should have eased the traffic immensely, but the everyday grind on the road does not seem to show that. Amongst the options available that reduce the potential liabilities in driving a car, car insurance stands out. It is a necessary cover for both seasoned drivers as well as newbies, those just getting started behind the wheel.
While third-party liability cover is a legal requirement, it does not completely protect against the unpredictable twists and turns of the road. We will explore the ins and outs of car insurance in this article to better understand what we should include in our coverage and why a comprehensive car insurance option is the way to go.
Understanding the Basics
Car insurance is a contract between the vehicle owner and an insurance company, which provides financial protection against damage or bodily injury resulting from accidents, and liability that could arise thereon. Its primary use is to provide financial protection against liability that could arise from the use of the vehicle. These liabilities may not be limited to third-party damages but may include hospitalization resulting from an accident, or even death.
Types of Coverages
Third Party Liability Coverage (TPL): This is the most basic form of car insurance and covers damage and injuries to others if you're at fault in an accident. It typically includes both bodily injury liability and property damage liability.
Excess Bodily Injury (EBI): An accident may result in harm to the driver or/and his passengers. This voluntary coverage answers for indemnities beyond the limit set forth under the TPL coverage.
Own Damage/Collision Coverage: This type of coverage pays for the repairs or replacement of your vehicle in the event of a collision, regardless of fault.
Third Party Property Damage (TPPD): When one meets an accident, it may result in damages to both yours as well as the other person’s vehicle. This voluntary coverage provides protection against liability for damage to third party property arising from accident caused by the insured vehicle.
Theft: In the Philippines, where street parking or even parking inside malls with security expose vehicles to theft or carnapping, this coverage is desirable. It indemnifies the assured in case of loss of the whole insured vehicle or parts thereof, resulting from the acts of thieves or carnappers.
Acts of Nature: Forces of nature may cause unpredictable damage to your vehicle. This feature will protect your car against damages directly caused by typhoon, flood, volcanic eruption, earthquake or other convulsions of nature.
Personal Accident (PA) Rider: This voluntary coverage takes care of the financial protection of the passengers against injury or death arising from an accident. When an accident results to hospitalization, the PA cover kicks in, providing the insured the means to settle possible hospitalization or memorialization expenses.
Factors Influencing Premiums
Several factors impact the cost of car insurance premiums, such as
Coverage Limits: Higher coverage limits mean higher premiums. It's essential to strike a balance between adequate coverage and affordability.
Driving Record: A clean driving record often results in lower premiums, as it signals to insurers that you pose a lower risk. With the recent move of the LTO to create a database that links the cars to its owners, it is now easy to track traffic offenders.
Vehicle Type: The make and model of your car influence insurance costs. Luxury and high-performance vehicles typically come with higher premiums.
Location: The area where you live and drive affects your insurance rates. Areas prone to flooding will get additional premium ratings.
There are other types of car insurance coverages available, such as comprehensive coverage, personal injury protection, and uninsured motorist coverage. It's important to choose the right coverage for your needs and budget. You can also consider bundling your car insurance with other types of insurance, such as home insurance, to save money.
If you are interested to get a quote for car insurance, you may click here https://standard-insurance.com/motor-insurance.html#/motor-details/