Common Car Insurance Mistakes Filipinos Make [nfographic]
Getting your car insured is vital in ensuring that you are financially protected should anything happen to your vehicle. One could say that an insured car’s owner is a responsible driver since it keeps the driver prepared if unexpected damages occur. Unfortunately, only a small number of Filipinos are equipped with the right insurance plan for their cars.
A lot of Filipinos see car insurance as another expense that they’d want to get done as quickly as possible since it is a tiresome process. One other reason why a lot of drivers lack insurance is that they tend to use old cars since buying a brand-new car is beyond their budgets.
Even if Filipinos managed to buy a brand-new car, they still tend to make several mistakes when it comes to car insurance.
Settling For The Cheapest Option
A lot of Filipinos aren’t exactly knowledgeable on insurance and would likely choose to get even the cheapest insurance available to say that they have one. This is one of the biggest mistakes that car owners can make since the cheapest insurance plan tends to lack the necessary coverage for any accident that could severely damage a car.
Not all car insurance plan coverages are alike, but many people think otherwise due to lack of knowledge. A lot of car owners remain content with the cheapest option available only to find out later that the plan they have doesn’t cover the particular cause of their cars’ damages. One notable instance is when car insurance companies recorded an increase to the number of car owners who availed a plan that had the “Acts of God” coverage after the Tropical Storm Ondoy struck since too few were had the “Acts of God” coverage before the storm.
The “Acts of God” coverage or “Acts of Nature” coverage is one of many other coverages unavailable to the basic insurance plans. Some of the additional coverages include fire protection, external explosion protection, and roadside assistance. Car owners will have to pay more for them, however.
Lying to Get a Smaller Premium
You might have started to consider getting car insurance, but because you don’t want to pay high insurance premiums, you decide to undervalue your vehicle to save up on your monthly insurance payment. Everyone would likely shirk when getting costly insurance plans, leading to such instances when car owners outright lie to pay less.
The downside here is that you won’t likely receive the full coverage you were expecting for your car. It’s advisable to state the full fair market value of your car.
Failing to research and shop around
A lot of Filipinos are impatient about a lot of things, including shopping around for insurance since it’s a tiresome matter. People will have to hop around from one website to another to see the insurance plan most suitable for them, eating up valuable time they could have spent elsewhere.
Failure to research the most suitable insurance plan and to shop around keeps drivers from insuring their cars properly.
Simply Renewing Their Insurance Plans
Many Filipinos can still make a mistake when renewing their car insurance, mainly because they don’t know how any useful tips in car insurance renewal. A car owner might have made a blunder in the past by not scrutinizing which plan is perfect for the vehicle only to do the same by getting the same plan for renewal.
Because researching about the right insurance plan is stressful and tiresome, many car owners tend to remain satisfied with their current plans and have them renewed without considering to get a new quote for their cars or comparing insurance companies to see which one offers a better plan.
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