Car insurance is one of the best ways you can protect your vehicle. It provides an invisible shield for your car and your finances in the event of an accident or incident. Aside from this, car insurance can even help you with other expenses that have come from a result of an accident.
With that in mind, we have created a quick list of eight-car insurance types that you should know to better help protect you and your vehicle. Take note that some of these mentioned in the list can be bundled with one another or are already part of your insurance coverage. Make sure that you read through your policy thoroughly in case these mentioned on the list are already part of it.
Third-party liability is one of the most common types of insurance you can get for your vehicle. Having this kind of insurance is a requirement before you can renew the registration of your vehicle and it is also one of the most affordable you can get. While it is affordable its coverage is limited, it will cover the other person’s damages in the event of an accident. The beneficiary of this policy would be the person that you hit, in other words, not the policyholder. This means that if you bump someone’s car, the damage on that someone’s car will be covered by the policy, and not the damage on your automobile.
Comprehensive car insurance
Another popular kind of car insurance you can go for is comprehensive car insurance. It covers any damages that your vehicle may receive from non-accident-related incidents. It covers instances where your vehicle may get damaged from certain events such as a fire, falling objects, certain natural disasters, and even vandalism. Other examples also include theft, hail, glass damage, and animal damage. This is a great option to go for if you want an all arounder insurance policy or an add-on to your existing policy.
This kind of car insurance is straightforward as it covers damage to your car after an accident involving another vehicle. It will help you with the repair costs and may even offer you a replacement vehicle. Keep in mind that this can be expensive depending on what kind of add-ons you want for your policy. Make sure to do your research and pick which policy will best suit your needs.
Uninsured motorist insurance
Not all vehicles driving around the Philippines are properly insured, more often than not they will only have third-party liability insurance, and that’s about it. With uninsured motorist insurance, you can protect yourself and your car against uninsured drivers and from hit and run situations. Having this kind of insurance can also be useful if the other driver has an insurance policy that isn’t enough to cover the cost of repairs to his or her vehicle as well as to yours.
Personal injury protection
Car insurance doesn’t always just have to cover the car itself, oftentimes it can also cover the occupants inside the vehicle as well. For personal injury protection, it does as the name states and covers certain medical expenses and loss of income that are the result of an accident. Depending on your policy, this kind of insurance can cover up to 80 percent of medical and other expenses that have come from an accident.
Medical payments coverage
Unlike personal injury protection, medical payments coverage is a lot more specific. You can’t claim anything else aside from any medical bills that have resulted from an accident. One benefit you do get out of this kind of insurance cover personal injury protection is that it can help you pay off your medical cost related to an accident regardless of who is at fault.
Another specialized kind of insurance you can get for your vehicle is gap insurance. A car’s value can depreciate rather quickly so an auto insurance settlement might not be enough to cover the cost of a loan if your vehicle is under financing terms. Getting gap insurance will help you cover the amount owed on a car loan if your vehicle is totaled or is stolen. We highly recommend getting this type of car insurance especially if your vehicle hasn’t been fully paid for yet.
Classic Car insurance
As the name states, this kind of car insurance is more geared for those with classic cars. It provides specialized coverage designed for the unique needs of a car collector who has vintage or classic cars. You may even find out that for these vehicles the insurance premium is much lower compared to that of a modern car as these kinds of vehicles spend more time in the garage than on the road. With that said, it is still a good idea to talk to your agent or insurance provider to find the best deals.