Things you need to know before getting car insurance

MANILA is among the world’s worst cities for driving, apart from being one of the most exposed to natural disasters and crime.

Vehicular accidents are a common occurrence in the metro. In 2015 alone, the Metropolitan Manila Development Authority recorded 95,615 traffic accidents in the metro, a figure up by 5.9 percent from the previous year. When broken down, the figure accounts for 519 fatalities, 17,103 injuries and 77,993 records of damage to property. The figure gives us a glimpse of the level of driving skills and traffic discipline that Filipino drivers have.

Now, you might say you’re a cautious drive and a strict follower of traffi c rules, that’s why you don’t have anything to worry about. But that’s not the point. Even the most cautious and vigilant of drivers can find themselves in the path of an unruly driver, which can lead to a mishap. You never know what could happen, and in case that something bad happens to you on the road, you need to be sure someone’s got you covered for any eventuality.

Which is why it’s highly important that every car owner gets car insurance.

In a gist, car insurance provides the car owner with financial protection in the event of physical damage to the car, death or bodily harm to the owner and other car occupants, as well as death or bodily harm to a third party that collided with the car.

The idea sounds easy, but there are certain details that require careful scrutiny and study before you go to any local insurer to buy car insurance. To help you narrow down what things to consider in buying car insurance, The Philippine STAR talked to two executives at Prudential Guarantee, one of the leading insurance companies in the country.

KNOW THE LAW

“Before getting car insurance, it’s very important that you know your rights under the law. In the Philippines, the legal basis of all insurance policies is Republic Act No. 10607 or the Amended Insurance Code on 2013,” says Marc Ocampo-Tan, (a manager at the executive office) the Head of Prudential Guarantee’s Motorcar Underwriting Department.

The code, according to Ocampo- Tan, basically stipulates what kind of insurance products can be offered, what each product covers and how much coverage can be provided. It also defines the liabilities of insurance companies and policy buyers in case they failed to abide by the law.

“Currently, the law requires every car owner to get Compulsory Third-Party Liability (CTPL) insurance before registering their car with the Land Transportation Office (LTO). CTPL is a basic insurance product available from any local insurer. It provides the car owner a P100,000 coverage against any accident involving bodily injury to a third party,” Ocampo-Tan explains.

LEARN THE COVERAGE

Being that CTPL has a limited cover, it is certainly not be enough to cover other financial liabilities resulting from a vehicular accident such as physical damage to the vehicle or injury to the owner and occupants of the car. For this, Ocampo-Tan advises car owners to purchase comprehensive car insurance.

“Comprehensive car insurance is not required to register a car at the LTO, only CTPL. Nevertheless, if you’re paying your car via loan, your bank will require you to get comprehensive car insurance because they want to be assured that the car they’re paying for will be taken care of in the event of an accident,” OcampoTan clarifies.

From the name itself, comprehensive car insurance covers a lot of potential damages and liabilities.

“Comprehensive car insurance has a wide range of coverage for physical damage to the car caused by accidental collisions, fire, accident related repairs, malicious acts, and even acts of nature such as typhoon, flooding, earthquakes and volcanic eruptions. Acts of nature insurance is crucial in a country like the Philippines, which is prone to natural catastrophes,” says Alvin Lorenzo Tan, Prudential Guarantee Claims Department AVP.

To illustrate how useful and important insurance is for acts of nature, Tan uses the example of Typhoon Ketsana (locally known as Ondoy) in 2009 and Typhoon Haiyan (locally known as Yolanda) in 2013.

“A lot of cars were washed away or damaged due to the flooding caused by these two typhoons. Vehicle owners were not prepared. Even cars that were parked in garages were not spared from such events. And with people losing their life savings, they had no money to have their vehicles fixed. After typhoon Ondoy in particular, acts of nature insurance increased in demand,” Tan explains.

FIND OUT YOUR PRIVILEGES

According to the two insurance executives, aside from the usual coverage of comprehensive motorcar insurance, special privileges are provided that the insured can enjoy anywhere in the country.

“In Prudential Guarantee, we assist our policy holders with their motoring needs as much as possible, which is why we have the Auto Insurance 100% worry-free Roadside Assistance Program that is available 24 hours a day. It includes absolutely free roadside assistance to the nearest accredited repair facility in the event of breakdown or accident, free vehicle breakdown service, free information assistance, free ambulance coordination service in case of injuries, free emergency message relay service, free alternative transport to destination, and free alternative overnight accommodation,” Tan elaborates.

CONSIDER YOUR BUDGET

The biggest question that lingers in car owners’ minds when it comes to buying car insurance is, “Can I afford it?”

In response to this question, OcampoTan says, “If you can afford a car, you should be able to provide a budget for car insurance.” Car insurance premiums are a function of the value of the car, a small percentage to pay to protect your investment in a brand new vehicle. Ocampo-Tan further mentioned that it is quite a burden to be troubled by paying for restoration of your car after an accident when you can get a comprehensive car insurance policy to do it for you.

You can never be too confident about your safety on the road. The dangers of driving are real. But you don’t have to fear such dangers if you know you have a reliable financial insurance plan to help you when such dangers and mishaps arise. It pays to learn everything you need to know about how car insurance works and how you can avail of it.

Even the most cautious and vigilant of drivers can find themselves in the path of an unruly driver, which can lead to a mishap. You never know what could happen, and in case that something bad happens to you on the road, you need to be sure someone’s got you covered for any eventuality.

To learn more about Prudential Guarantee’s Auto Insurance Program, call 654-9450, email pgaauto@prudentialguarantee.com or visit www.prudentialguarantee.com.