Why every Filipino driver needs car insurance

Car insurance is more than just an option for Filipino drivers—it's a necessity. As the number of vehicles on the road continues to increase, so does the likelihood of accidents, theft, and other unforeseen events. And this is where car insurance comes to the rescue, it provides crucial protection for drivers, passengers, and their vehicles. It ensures that financial stability isn't compromised in the face of an accident.

In this article, we’ll explore why every Filipino driver should prioritise car insurance by delving into its importance, benefits, and legal mandates.

So, without any delay, let’s get started and find the answer to the following question -

Why is car insurance needed?

#1 The legal requirement of car insurance

In the Philippines, car insurance is not merely an option owners pick; it is legally mandated. The Land Transportation Office (LTO) requires all vehicles to have a Compulsory Third-Party Liability (CTPL) insurance policy before they can be registered. This basic insurance covers bodily injury or death caused to a third party in an accident. Note, that failing to have CTPL can result in significant penalties, including fines and impounding of the vehicle.

However, while CTPL is the minimum legal requirement, it only provides limited coverage. This is why drivers should consider comprehensive car insurance that offers more extensive protection against a wide range of risks, including damage to the vehicle, theft, and even natural disasters.

#2 Financial protection against unexpected events

One of the primary reasons to invest in car insurance is to secure financial protection against unforeseen circumstances. Look, no matter how cautious a driver is, accidents happen. And when it does, the financial implications are overwhelming - ranging from repair costs to medical bills and legal fees. Without car insurance in hand, all these expenses will come directly out of the owner’s pocket, thus leading to financial strain and sometimes even debt.

Wanna get rid of this financial burden? Opt for comprehensive car insurance as it will cover the cost associated with repairs, medical expenses, and other liabilities. Thus offering immense peace of mind to the car owner as he/she knows that they won't face a financial crisis due to an accident.

#3 Vehicle theft & vandalism coverage

Urban areas in the Philippines face a common issue, that is car theft and vandalism which is a significant concern among car owners. Now losing a vehicle to theft is devastating, not only because of the emotional value attached but also the heavy financial loss it causes.

Comprehensive car insurance in the Philippines often includes coverage for vehicle theft and vandalism, thus allowing drivers to recover the value of their car or receive compensation for damages. This coverage ensures that the owner is not left stranded without a vehicle and bears the financial burden of a stolen or vandalised vehicle.

#4 Protection against natural disasters

It is a well-known fact that the Philippines is prone to natural disasters like typhoons, floods, and earthquakes. These events can cause significant damage to vehicles, often leaving them unusable. Repairing or replacing such a vehicle is incredibly costly.

To rescue enters car insurance policies that often include coverage for natural disasters, also known as Acts of God. This coverage ensures that drivers are protected against the financial impact of such events, providing compensation for repairs or replacement of the vehicle.

Note, that in a country like ours where natural disasters are a constant, this protection is invaluable.

Also Read: Understanding nature and acts of God coverage for your car in the Philippines

#5 Peace of mind in every journey

In congested cities like Metro Manila, driving can be pretty stressful. There is a constant risk of accidents, traffic rule violations, and other road hazards, all of which take a toll on a driver. In such a scenario having car insurance offers peace of mind to the car owner and allows them to focus solely on the road rather than worrying about the potential risk and financial consequences of an accident.

With comprehensive car insurance by your side, a driver can drive in confidence. So be it commuting to work, taking a road trip, or simply running errands, having car insurance coverage allows the driver to enjoy the journey without any fear.

#6 Covers legal and medical expenses

In the unfortunate event of an accident, legal and medical expenses can quickly add up. And god forbid, if you are at fault, all the damages, medical bills, and even legal fees for both yourself and the other party involved will fall upon you. Without insurance, these costs could be financially crippling.

Car insurance policies typically cover legal fees, settlement costs, and medical expenses for injuries sustained by both the driver and passengers. Such coverage is crucial in preventing a minor accident from escalating into a financial disaster for a car owner.

#7 Covers passengers injury

In addition to covering the driver, car insurance often includes coverage for passengers in the vehicle. So, in the event of an accident, if a passenger sustains injuries, the policy will take care of the medical expenses. This is particularly important for families or drivers who frequently travel with others.

Knowing that loved ones are financially protected in the event of an accident provides the driver with an extra layer of protection and peace of mind.

#8 Third-party liability

Third-party liability coverage is a key component of a car insurance policy. It is essential for protecting not only the driver but also other people who may be affected by an accident. In the event of an accident that results in damage or injury to another person’s property, third-party liability coverage will cover all the associated costs.

This particular coverage is important for the Philippines. Why? Because road accidents are common, and the potential for causing harm to others is significant. Without this coverage, a car owner will be personally liable for these costs, which could be financially devastating.

Also Read: Compulsory Third Party Liability (CTPL) 101: Everything a car buyer needs know

#9 Roadside emergency assistance

Many car insurance policies in the country offer applicants additional benefits such as roadside assistance. Such a service can be a lifesaver, especially in situations where your vehicle breaks down, runs out of fuel, or has a flat tyre. Roadside assistance services typically include towing, minor repairs, and other forms of support to get you back on the road as quickly as possible.

In the Philippines, where traffic congestion and long travel distances are common, having access to roadside assistance can make a significant difference in minimising the stress and inconvenience of a breakdown.

Also Read: All you need to know about towing coverage in the Philippines

# 10 Prepares you for the worst-case scenario

Life is unpredictable, and the road is no exception. Accidents, natural disasters, theft, and other unexpected events can happen at any time. Car insurance provides a safety net, ensuring that drivers are prepared for the worst-case scenarios. This peace of mind is invaluable, allowing drivers to navigate the roads with confidence and security.

#11 Cost-efficient and time-saver

Car insurance is often viewed as an additional expense, however, it is important to consider the long-term savings. Look, the cost of car insurance is nothing compared to the potential financial loss one could incur from an accident, theft, or natural disaster. Overall by investing in car insurance, a car owner can safeguard his/her finances against unexpected costs.

Many insurance providers offer discounts to an applicant for bundling policies, safe driving, and having multiple vehicles insured under the policy. Over time, these savings can add up, making car insurance a cost-effective choice for any driver.

#12 Tailored as per driver’s need

One of the great advantages of car insurance is that it can be tailored to fit the specific needs of each driver. Insurance providers in the Philippines offer a range of policies, from basic CTPL to comprehensive coverage with additional riders for specific risks such as Acts of God, vandalism, or personal accident coverage.

Such a level of flexibility allows the drivers to have coverage that best suits their needs and budget. It doesn’t matter if you are a new driver, a daily commuter, or someone who drives occasionally, there is a car insurance policy that will provide just the right level of protection to you.

#13 Building a relationship with a trusted insurance partner

Having car insurance means establishing a relationship with a trusted insurance provider. In times of need, having a reliable provider who can offer guidance, support, and prompt claims processing is invaluable. Many insurance companies in the Philippines prioritise customer service, ensuring that their clients receive the assistance they need when it matters most.

Building this relationship not only provides security but also creates opportunities for future benefits, such as loyalty discounts or customised policy options based on your driving history and needs.

Bottom line

In conclusion, every Filipino driver needs car insurance. Not just because it is a legal requirement but also because it offers much-needed protection against a range of risks. With car insurance by your side, a car owner not only gets financial security but peace of mind and protection against natural disasters.

Also Read: Beware applicants, don't fall for these car insurance myths