Why an Old Car Will No Longer Be Covered By Insurance?
It is your first time to purchase a car. Perhaps, for your first ride, you are willing to shell out P100,000 on a used vehicle. Good for you, that is a good start. Probably, you’ll be able to get a vehicle made somewhere around the mid-1990s. And if you check olx.ph, there are a LOT of cars that could potentially meet your budget and needs.
The Philippines isn’t exactly a country that has strict policies regarding vehicles that could get registered and run on public roads. Unlike Singapore that has strict control over car ownership, we see even jeepneys that won’t pass safety standards to still operate and provide transportation to the general public. So if you are thinking that getting an old car isn’t a practice in the Philippines, think again.
Though this could be a good first step towards driving your own car, keep in mind that there could be some complications when it comes to ensuring the vehicle. In reality, a lot of car insurance companies will only cover those vehicles that are not older than 10 years old. At this point, car insurance comparison even with the best websites and insurance firms could become tricky. Honestly, with an older vehicle, you are depleting your options.
Reasons
Though not an incident in the Philippines, it is worth mentioning that a car insurance company in Ireland made an announcement that they are already not covering cars that are aged 14 years and older vehicles. And what are the reasons behind this decision by the company? They mentioned that they are simply protecting the customers with their ability to offer competitive pricing. Also, they mentioned that with older vehicles, it is more frequent to receive claims coming from injuries, which basically means that the older your car gets, the less likely that it is safe to drive.
In the Philippines where the threat of accidents is higher than in neighboring countries, given the poorly implemented traffic rules, not to mention the volume of vehicles, an old car could be in a disadvantaged situation. For instance, parts are becoming more and more difficult to find for older cars.
Also, the damage from an accident could easily cost P50,000 or higher. Why? Due to parts becoming hard to find, not to mention the cost of labor, this would already make around 50% of the car’s total value. So does it make sense to make a car insurance quote based on the car’s value at this point?
Is it practical to purchase an uninsured vehicle?
Even the best car insurance comparison companies in the country may not be able to offer you the best options. So is it practical to really have a car that is quite old? Honestly, you really don’t have to blow your budget out of proportion just to have your own car. Before you purchase a car given a limited budget, you need to be aware of these realities.
Perhaps, why not settle with a ten-year-old vehicle? From here, you could have it covered by car insurance firms. Most likely, they’d continue to cover your vehicle as long as you simply renew with the company. However, don’t count on it. You may want to talk to a car insurance company to know more about their policies.
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