Car insurance is a contract between a vehicle owner (insured) and an insurance provider (insurer), which generally provides the insured protection against possible financial losses they might acquire. The insurer offers compensation to the insured in unexpected or unfortunate circumstances.
There are two types of insurance policies that you can choose from, and both have their own sets of car insurance coverage Philippines.
Compulsory third-party liability (CTPL) insurance enables you to comply with the Land Transportation Office’s requirements for the registration or renewal of registration of vehicles. This insurance policy allows you to get the standard protection mandated by law, which is 100,000-peso financial coverage for third-party persons involved in an accident.
Meanwhile, a comprehensive car insurance policy covers repair expenses of damaged properties and medical expenses of everyone involved in the accident. Furthermore, comprehensive insurance can also protect you from risks like loss and damages from theft, fire, and other perils.
Both car insurance Philippines policies help vehicle owners have protection against financial and legal liabilities. Still, other car owners/drivers hold themselves back from acquiring car insurance and continue to drive their uninsured vehicles on the dangerous Philippine roads.
In contrast with having car insurance, not getting insurance for your vehicle exposes you to the financial and legal risks of driving an uninsured automobile. For instance, you will have to pay for the total amount of your vehicle’s repair if it gets damaged in an accident. Consequently, if the accident is a two-vehicle collision, you also have to cover payments for the medical expenses of third parties involved in the car blunder and pay for the repair of their damaged car.
And in case you cannot pay for the expenses brought by a vehicular accident, mainly if you are the one at fault, you will be held liable and could face hefty fines and even serve jail time. In the Philippines, if you cannot pay for the damages resulting from the accident, a case of reckless imprudence resulting in damage to property may be filed against you.
To know more information about the risks of driving without a car insurance policy, read this infographic from iChoose.ph provided below: