Often, the question would come into the mind, what are the various kinds of car insurance available in the market. Let us find out.
Types of car insurance
There have been generally two major types of car insurance policies available in the market. Others have been basically the variations of the two major types. The first one, which is commonly known as ‘third party’ insurance would cover the policy holder against third party claims and liabilities. However, it does not cover your own damages. The second insurance type has been known as the ‘comprehensive’ car insurance cover. It would cover third party damages and injuries, theft of car or fire damage. It would also cover any damage to your own vehicle. Vehicle owner is required to be aware of a variety of vehicle cover options as described below.
This type of insurance would cover injury to other people or damage to their vehicle or property in an accident along with your own vehicle for accidental or other damages, hijack and theft. It would also include some ‘acts of god,’ which might be separately specified. Acts of god might be inclusive of hailstorm, cyclone, inland waterway, inundation, tempest, storm, hurricane, typhoon, flood, earthquake, explosion, natural fire and others. Generally, strikes and riots, terrorist or malicious acts are not covered. However, you should check your policy specifications. Because of its wide extent of coverage, Comprehensive has been the most expensive type of car insurance Philippines.
Comprehensive, but limited – Pay as you drive
In case, you do not spend much time on the road, but wish to enjoy all kinds of benefits of comprehensive insurance, few insurers would offer ‘pay as you drive’ insurance. It would work out by charging you fairly for the amount of time you would spend on the road.
Balance of third party, theft and fire
It would cover you for damages done to the vehicle of the other party in event of an accident. It would cover your vehicle in the event of loss by theft or fire only. However, damages to your own car in the event of an accident would not be covered.
Third party only
Third party only has been the most limited form of cover available. It is also the cheapest of all the available options. It would cover you for damage to vehicle of another party in event of an accident. It would cover the costs associated with the accidental injury or death of third parties involved in the same accident. However, your own car would not be covered in any manner.
Maintaining your insurance policy has been an on-going process. Cars would lose value over time. The insured value of your vehicle would be required to be updated and monitored year to year. In case, your premiums have been based on your original purchase price, but the current value of the car has been less; only the discounted value would be paid by the insurer. Ensure your car is not insured for more than its current retail or market value. You should contact charter ping an car insurance and consult them on adjusting your premium.