Car insurance is mandatory — Here's why

Car insurance is a requirement, no questions asked. When a person is behind a fuel-powered projectile that weighs a ton or two, there is a level of risk that is involved. As such, every driver and car owner must take the initiative to make sure that their vehicle is insured properly. 

However, if you’re still looking for more reasons as to why, besides the fact that it is illegal to drive an uninsured vehicle, we’ve compiled a list of benefits and other concerns surrounding the topic of car insurance.

As stated, in order to register your car, you must insure it. Without a policy, you will not be allowed to register your vehicle. As such, you will not be able to legally drive your car on Philippine roads. When questioned, you will get into trouble with the authorities and you will be fined accordingly. 

While Philippine law is quite clear, the minimum requirement is that you get a Compulsory Third Party Liability (CPTL) policy, which is an affordable and bare-bones policy that will not cover you or your car in the event of an accident. The pro is that the insurance company will be able to compensate the affected third party, but the con is that you and your car are a bit exposed financially. This means that you will need to shoulder the cost of your own repairs in the event of an accident. 

We often think of physical protection for your vehicle, but it is easy to forget financial protection. Getting into a car accident will undoubtedly put a dent in your wallet. Without insurance, you will have to pay out of your own pocket in order to settle the situation. Getting the CPTL policy will get most things out of the way, but to further protect yourself, one must go beyond the bare minimum requirements. 

While you can buy car wax, get a ceramic coat, or apply paint protection film, a serious accident will likely damage more than just your paint. Mechanical components can get quite costly and if the impact is hard enough, you might have to pay for other things like airbags, frame repair, and new body panels. To repair and replace all these items can total hundreds of thousands, and can even go beyond the current value of the car. Comprehensive insurance is your best bet to protect your own car. 

As stated, you and your vehicle have the potential to cause bodily and property damage, especially when the accident is serious. Liability is the word, and responsibility is key. Why? Whenever you get into an accident, you carry a certain responsibility to the affected party especially if you’re at fault. While you can talk about an amicable settlement between you and the affected party, it will be much easier to let your insurance handle it. Not only will an insurance policy help you responsibly take care of the situation, but it will also help clear you of your liability to the other party while helping preserve your current financial standing. 

Life is full of uncertainty, and to invest in a financial product like insurance is the responsible decision to make. It’s easy for car repair bills to reach in the hundreds of thousands, and getting the help of an insurance policy is the best action to take when dealing with life’s many surprises. 

It is also frowned upon to get into an accident then subsequently run away from the responsibility that you must assume. There is also a human aspect when dealing with accidents, leaving someone with a damaged car and a hefty repair bill caused by you should at least weigh on your conscience. Cars are expensive, and getting a car repaired is even more expensive. 

Even more dire are accidents that involve bodily harm and injury. Medical bills can get quite expensive, and severe injuries may hamper someone’s ability to provide for themselves and their families. Insurance is there to protect the person from financial ruin brought about by an accident. A serious enough injury will render someone unable to work for a time or permanently. Whether it’s you or the third party, having a good insurance policy to cover everything for you is essential.