You’ve probably come across the information that car insurance is required while learning more about it. Yes, The Motor Vehicles Act requires it.
But do you understand what happens if you break the law? Are you aware of the financial consequences of being unable to show a legitimate auto insurance policy to a police officer when asked?
Driving a Car Without Insurance Has a Financial Impact
Penalty for non-compliance
If you drive a four-wheeler without a third-party liability insurance policy, you may face penalties from the authorities. The penalty for the first offense is ₱2,000, while the punishment for the second offense is ₱4000, according to the amended Motor Vehicles Act 2019.
There is also the possibility of getting imprisoned.
If your uninsured vehicle causes an accident that results in a third-party injury, you will be held financially responsible. The same is true if their property is damaged.
Such problems are handled by the insurer in the case of an insurance policy. However, if your insurance has expired, you will be responsible for paying the compensation out of your own money.
Repairing Your Own Injuries
Without the support of an insurer, repairing a car can be a costly endeavor. You will be responsible for the entire cost of repairs if you do not have a valid policy.
A large repair bill in this situation can deplete your finances.
Paying a Hospital Bill for a Personal Injury
The insurance provider offers a cover of up to ₱ 5,000 in the sad event of irreversible damage caused by an accident involving the insured car. This also applies to death as a result of an accident. The insurance won’t cover you if you don’t have a policy.
As a result, you will not be eligible for financial assistance and will be responsible for paying your own hospital fees.
Increase in Premium
Before providing a new policy, the insurer may wish to inspect your car if it has been uninsured for a long time. Inspections like these frequently result in an increase in the premium that must be paid.
The financial impact is that you will have to pay a higher insurance premium for a Comprehensive Car Insurance Plan, which could have been avoided easily if the policy had been purchased and renewed on time.
Motor Insurance Benefits: Why Buy A Comprehensive Car Insurance Policy?
A full discussion on the advantages of a Comprehensive Car Insurance Policy may be found here.
Minimize Financial Implications
By choosing a Comprehensive Car Insurance Policy, you can avoid the financial consequences of not insuring your car. Because of the following factors, it may be able to cover your financial needs.
- There are no penalties for non-compliance.
- Assistance in the settlement of third-party liabilities
- Repairing damaged car parts is covered by insurance.
- Personal Accident Insurance provides coverage for injuries sustained in an automobile accident that are permanent.
When you choose Comprehensive Cover, you gain access to the add-ons section of the website. These are extra insurance coverages that provide better insurance services or result in a bigger payout when a claim is filed.
Here are some of the most common vehicle insurance add-ons.
- Protect yourself with the No Claim Bonus.
- Cover for Invoice
- There is no depreciation.
- Assistance on the Road
- Engine Safety
Peace of Mind
It’s good to know that you have an insurer to rely on during difficult situations like a vehicle accident. Purchasing or renewing car insurance from a dependable and responsive provider can go a long way toward ensuring your whole car-riding experience is worry-free.
At the end of the day, no one enjoys having to pay for auto insurance. Having insurance, however, can help you avoid major consequences such as jail time, license suspension, and the hassle of obtaining peace of mind.
Plus, given the high cost of most automobile accidents, having basic insurance is a smart way to avoid being liable for thousands of pesos in damages.
Read also: Tips To Decrease Your Car Insurance Premium