Read on to know the basics of car insurance and the importance of having one.

The road is probably one of the most dangerous places a person will ever be. Every day, an average person is exposed to risks of collision, car defects, traffic hazards and many more. One thing to ensure the financial expenditures that you’ll have to make in cases of such tragic incidents is to purchase car insurance. The future is inevitable, and in this world where any move you make entails a cost, you have to assure your financial aspect and acquire a safety net.

Before digging in the broader aspects of car insurance, let Philcarnews.com explain first know what the basics are and see the benefits of having one.

1. What is car insurance?

Car insurance offers you and other drivers, protection if any incidents happen while you are driving your vehicle. The most basic coverage of such insures you against “third party costs” that were results of the damages done, injuries and/or fatalities when the incident was deemed to be your fault. Some policies cover expenses or reimbursement to the value of recovering or replacing your car if it is stolen. Most of the time, car insurance is needed for all motorists to have. In the Philippines, a Compulsory Third Party Liability shall be secured first before registering a vehicle to the Land Transportation Office (LTO).

The most basic coverage of such insures you against “third party costs” that were results of the damages done, injuries and/or fatalities 

2. Why is there a need to purchase car insurance?

Just imagine getting into an accident with a fellow driver because of your carelessness. This alone makes you liable for all the damages you have done to that person’s car and the damages at your own car. If you don’t have any car insurance at your disposal, it would be a terrible financial burden to carry.

3. How much do I pay for car insurance?

There is no such thing as a fixed car insurance price in the Philippines. A lot of deciding factors will affect the pricing, and these are:

1. Make of your vehicle
2. Vehicle’s variant
3. Vehicle Usage/Mileage
4. Model of your vehicle

In addition, you also have to consider the Fair Market Value (FMV) to determine the cost of car insurance. It is computed with the basis of the vehicle’s model and series. Insurance companies also take into account the depreciation rate of your car.

4. What does the Compulsory Third Party Liability insurance cover?

In the simplest term, a CPTL acts as a safety net for expenses a policyholder may incur in cases of injuring or killing someone on the road. It covers damages to the properties involved in the incident, bodily injuries sustained by the victim and permanent disablement, and death. A CPTL coverage can only be claimed if it was deemed that the incident was your fault.

5. Benefits of car insurance

Since it is almost worrisome to have no money or savings at least that could potentially save you if worst case scenarios occur, we compiled a list of benefits you'll gain from purchasing insurance. 

5.1. Financial protection

Life is already hard in itself, and you'll even increase your burden if you don't make wise financial decisions.  Although insurances are costly (we’re not just talking about car insurances alone, also other types), better consider it as an investment. In this manner, you won’t hesitate in paying your monthly premiums because all of it is for a good cause. Also, due to inflation rates and the economy tightening up, prices for all goods and services in the market are rising up. It wouldn’t just cost you a few hundred to pay for a damaged car or an injured person’s medical bills; it would take hundreds of thousands. Plus, if you can’t pay for the financial compensation, required or as demanded by the other party, it may lead to a court battle. This will take up a few thousands more expenses to incur.

Although insurances are costly (we’re not just talking about car insurances alone, also other types), better consider it as an investment

5.2. Coverage for medical costs

It goes without explicitly stating, you have to pay for the other party’s medical bills and yours’ too, especially if you’re the one found faulty of the situation. When you have insurance, it will cover up for the injured person’s medical fees (maybe yours too, depends on the insurance you own) which can be a hefty amount of money to release from your already dying wallet.

When you have insurance, it will cover up for the injured person’s medical fees (maybe yours too, depends on the insurance you own)

5.3. Mandated by the law

There's a good side to the fact that the LTO requires a vehicle owner CTPL primary insurance before it can be registered. This is a safety net for all the motorists to ensure that all of them are taken care of, in a sense. Even though you have car insurance, this doesn’t permit you to be reckless on the road.

5.4. Replacement and repair costs are covered

It may depend on how severe the accident is, but there is no doubt that your vehicle will be damaged. With insurance, payment for repairs or replacement (if the damage totaled in) will be covered by your insurance provider. This alone will save you a lot of money.

5.5. Freedom from stress and worry

We can never tell the future. As responsible citizens, everyone must do their fair share of making sure that everyone is safe and secured wherever one may be. When you have car insurance, you are not only securing yourself from financial stress, you are also making sure that the other person gets the right treatment as every person deserves their chance with life. Also, you don’t have to worry anymore if you have enough money to pay medical bills, car repair costs and other damages you may incur when you are involved in an accident. That's one sigh of great relief for someone that knows how to invest for his future.

When you have car insurance, you are also making sure that the other person gets the right treatment as every person deserves their chance with life

If you want to learn more about car insurances, you can educate yourself with published articles online regarding its use, how it works, the legal terms concerning its coverage and many more. You can also go to your nearest insurance agent for a quick tour of how things work and even canvas insurance costs right there and then. Remember, your life is as precious as others, make sure to live a long and healthy one by securing your future.

>>> Click to get more helpful tips and advice for all car owners