There is no better way to protect your investment than to have auto insurance as you can never be too careful when you are out on the road.
The cheapest brand new car would cost approximately around half a million pesos.
Considering the hefty and exorbitant amount it would take for you to purchase a car, it would only be understandable for you to get your car insured.
Unfortunately, some individuals would think that having their vehicles covered with an auto insurance policy or coverage would just be an unnecessary expense on top of what they have paid for their cars.
However, this should not be the case as having your cars covered with insurance can pull you out of tight spots in the future should anything untoward happen to you or your car while driving.
Similarly, individuals might be dissuaded from acquiring auto insurance because they have mistakenly believed some myths which would later turn out unfounded.
If this is the case and if this is what has been preventing you from buying car insurance in the Philippines, then perhaps debunking some car insurance myths will enlighten you.
Here are some of the biggest and most common car insurance myths:
The Four Auto Insurance Myths Debunked
#1. Working with a direct company is cheaper than going through a local agent
More often than not, those who want to get their cars insured would rather go straight to the insurance company rather than deal with an agent.
To them, this is a way of cutting costs by saving on agent commission fees.
However, while you may not have to pay the commission fee, this does not automatically mean that the savings will be passed on to you.
A lot of direct auto insurance carriers will instead use those savings to market their brand and product.
Should they market their product sans the assistance of local agents marketing for them, direct carriers would instead need a little more effort in creating awareness for their brand.
As a result, there will be a large range in price for any single individual.
#2. Shopping for auto insurance is only possible once the current policy expires
Consumers should be aware that they are not bound to their auto insurance coverage for the full term.
When you are insured, you always have the option to cancel at any time. You would be subjected to cancellation fees of course.
These usually vary by carrier, but in any case, this would mean that should you want to cancel your auto insurance coverage, you are always free to do so.
If you think that you can potentially save more by switching your auto insurance coverage, do so.
However, prior to cancellation, do not limit your research to the price alone, but to what the coverage entails as well.
#3. If anyone is driving your car other than you, your vehicle would not be covered against damages
More often than not, this would not be the case. After all, it is the car that is insured, not the driver.
Most comprehensive and collision coverages would provide adequate protection to your vehicle regardless of who the driver happens to be.
The only exception to this case is if you have explicitly excluded this friend in your insurance policy. Only then would the damages not be covered.
#4. Comprehensive coverage covers theft of your vehicle and all items contained within
Again, it has to be further stressed that you are buying an insurance policy for your car and your car only.
Naturally, when your car is stolen, only the car itself would be insured and the items physically attached to it.
Among those included are your car stereo and GPS device is it is installed by the factory.
Other personal belongings such as cellular phones, clothing, gadgets and the like are not covered by your insurance policy.
Guest Author: John Lupez, Paramount Direct.
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