Is Your Car Insurance Policy Sufficient for Your Own Good?
What is the use of car insurance in today’s time? If we’ll look at the number of vehicles registered today, that would sum up to a total of about 7.4 million nationwide. Just to give you an idea about how likely you are to get in an accident in the Philippines, there were around 5,000 road accidents during the first quarter of 2012, not to mention 600 fatalities. Among the most common cause of road accidents is human error.
Despite the number of vehicles in the Philippines today, and the number of driver’s licenses issued, it is undeniable that there is no widely implemented formal training on how to drive safely. If there is a more perfect time when to learn how to properly do a car insurance comparison, that time is now.
So if you decide to get a car, it is imperative to have affordable car insurance that can meet your needs. So how do you know if what you purchased is actually sufficient for your own good? Here are some of the things to help you decide during a car insurance comparison whether or not the car insurance policy will already get the job done.
What are the risks that you typically face?
What are the risks that you face as you drive your vehicle? Do you live in a flood-prone area for instance? If so, you may want to purchase the Act of God coverage to help you in case your car gets flooded. Given the rainy days in the Philippines run from June to October, there is a high probability of encountering flood especially if you are living in low lying and flood-prone areas. And given the billions of pesos worth of damaged properties during the recent typhoons, your car may end up getting flooded.
What are the activities that you do?
Also, part of the car insurance comparison is to evaluate your activities. Is your car being driven from work to your house, during the rush hour? Or maybe, your car is being used for long road trips regularly? The amount of activity that you do in your car will most likely give you an idea about the risks that you encounter. From here, you’ll be able to deduce if your car insurance is really sufficient to cover all bases or not.
How much does repair cost and how much is your insurance company willing to cover?
So how much does the typical repair cost? If damage would cost around P30,000-50,000, but the car insurance premium will only cover half, then definitely, your car insurance policy is not enough. You want to have peace of mind as you drive your vehicle.
Is it for commercial use?
Lastly, if you are using your vehicle for commercial purposes, most likely, it plays a huge role in your monthly income. Unlike private cars that can be parked while you use public transport, commercial vehicles can be tricky.
However, expect that it is going to be exposed to more risks on the road. Therefore, you also have to deal with more accidents that could result in opportunity costs. If this is the case, you want to always take the highest precautions in order to reduce risks that can go your way.
As a rule of thumb, not all affordable car insurance policies are the same. Given the different needs and risks, it is only imperative to ask the help of leading car insurance comparison companies. This will give you not only an idea of what they can offer but also know the price range.
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