A car insurance policy is a contract or arrangement between an insurance company and a vehicle owner. Having car insurance Philippines is necessary as it enables drivers to comply with the country’s laws, primarily on the registration or renewal of registration of their vehicles. It also allows them to financially protect themselves from the inherent dangers of driving along the country’s road.
As a compulsory third-party liability or CTPL insurance is a requirement for registration, and a comprehensive car insurance policy provides a wide range of benefits, including peace of mind to car owners, purchasing car insurance is a wise and sensible decision. Still, many people see insurance as an additional liability and an expensive investment, as they believe in some misconceptions about availing of insurance policies.
However, a comprehensive car insurance PH is only an extra (and expensive) liability if vehicle owners are not careful when selecting the policy that they plan to buy. For instance, purchasing a policy with the cheapest premium can cost more than choosing a policy with a reasonable premium. It is most often than not that insurance policies with the lowest premium have less insurance coverage.
Not getting enough coverage means vehicle owners will have little financial protection from their insurance policy. This can also cause them to fork out more money from their own pockets to pay for repair costs if they get involved in an accident.
Moreover, not comparing insurance policy inclusions and premiums is another mistake that makes auto insurance expensive. Vehicle owners need to carefully look through the included insurance coverage in every policy to weigh whether the insurance policy’s premium is justified or not.
A car insurance policy with a reasonable premium and adequate coverage is the ideal investment for vehicle owners. In contrast, having an insurance policy with insufficient coverage and high premium can lead a car owner to invest in expensive insurance with little financial protection.
As long as car owners know the strategies that can enable them to purchase a car insurance policy that suits their needs and fits their budget, they can get the best insurance plan for their vehicles without taking too much money out of their pockets. This infographic from iChoose.ph discusses car insurance, why it is essential, and the common mistakes vehicle owners should avoid when buying an insurance policy.