Driving Without Insurance Has Some Extremely Dire Consequences
A car insurance coverage is more than just protection for you and your vehicle. In fact, driving without insurance presents some rather costly and dangerous risks. For instance, the law requires all old and new cars in the Philippines to have third party insurance, otherwise known as Compulsory Third Party Liability or CTPL. Without it, a vehicle simply cannot be registered with the Land Transportation Office (LTO).
That said, the inability to register a vehicle with the LTO is the least of your problems when you don’t have even the most basic type of car insurance. Carmudi lists three of the biggest consequences you must face when you fail to have even the least amount of liability coverage.
- You’ll have to pay for damages out-of-pocket
Car insurance is basically your peace of mind that someone is going to pay for the damages that may happen on the road. If you figure in an accident and authorities determine that you are responsible for it, CTPL insurance covers property and physical damage up to P100,000 for any medical or funeral expenses that you’re liable to pay. Although the amount isn’t much, it can certainly help, especially if the damage doesn’t exceed the amount. And if you have better coverage (e.g. collision coverage, comprehensive coverage, personal injury protection, act of god car insurance), you may not have to pay a single cent at all.
- You won’t be able to use your car
If your car went through a serious accident and you don’t have the money to pay for its repair, you might not be able to use your vehicle at all. If you use your vehicle for business, that could mean significant loss of income. Having car insurance can means zero delays with respect to the repair of your vehicle, and this can help keep your time without car—as well as any loss of income that it might incur—minimal.
- You could face hefty fines and even jail time
When you’re the cause of a vehicular accident, you could end up being charged with reckless imprudence, a serious criminal offense punishable by imprisonment and a fine. As you can imagine, these penalties can both be stressful and problematic not only to your finances, but also your reputation and overall wellbeing. If only you secured insurance for your car when you had the chance.
Your car represents a significant investment, so you should never take its protection lightly. More than just a source of funds for damages, car insurance can save you from the stress and worry that comes from unfortunate road mishaps.
Looking for insurance for a brand new or used car? Know that insurance for brand new cars and insurance for second hand cars are altogether different. If you must talk to an expert in insurance for cars for sale, don’t hesitate to do so.