Importance of Auto Insurance for a New Car

Importance of Auto Insurance for a New Car Featured Image

Driving your own set of wheels is an advantage, especially if you are a working person. The question is It is Worth it to take a Car Loan?. In the Philippines, most professionals, particularly people with high-paying jobs, get to own brand new cars through auto loans or car financing.

But getting one, you will not only think of paying your monthly amortizations, but you also need to consider your car insurance. In this content, you will know how essential auto insurance for a new car is and how it is highly beneficial.

Importance of Auto Insurance for a New Car

Importance of Auto Insurance for a New Car

For most car dealers, when you purchase a brand new car whether, through cash or
, you will get full coverage car insurance benefits free for at least a year upon purchase of a new vehicle, then you have to pay for it in the succeeding years. Prices for this vary, depending on what type of policy you want for you and your unit.

However, the importance of auto insurance is not very evident for many car owners because many outlooks this as an added expense for them. Moreover, if you are a new driver, you should consider getting auto insurance for your safety whenever an unfortunate incident may arise.

We have listed below some of why getting auto insurance is very important.

*Law mandates Auto Insurance.

The Land Transportation office requires vehicle owners to get Compulsory Third Party Liability (CTPL) car insurance for their benefits. It is one of the requirements before registering your car to the LTO. This Compulsory Third Party Liabilities car insurance covers all the driver’s liabilities to the third party involved, including injuries and death. You are protected from incidents by having this insurance, whether they consider it your fault.

*Auto insurance covers your car damages caused by natural disasters. 

Geographically speaking, the Philippines is a country where natural calamities always occur. Over fifteen to twenty tropical storms each year can pass by on our land, and an average of five are very hefty and caustic.

Floods all over places during rainy seasons, and no one is safe, especially if there is a strong typhoon. Preparations are needed ahead of time because this scenario is widespread. We always make sure the base of our homes is strong enough to endure powerful winds. Otherwise, we may have to go to an evacuation center for days and nights till the storm ends.

However, if you possess a car, you may not want it to be flooded because it can cause damages to its parts, and repairs could be very costly. Car insurance can protect your vehicle from flooding and another natural disaster that easily damages your car.

*Auto insurance helps you save money.

Road accidents while you are driving, may come up anytime. If something goes wrong with you and your vehicle, you don’t need to worry about spending a lot through repairs, so do with hospital and medical bills if you have auto insurance. Auto insurance will also help you lessen the emotional stress you may get because of the unwanted incident.

*Auto insurance protects you from possible theft and vandalization.

Unfortunate incidents like taking away your vehicle against your will can happen to anyone. We always hear stories from social media and news from televisions of stolen cars annually. For car owners, it is one of their biggest nightmares.

This scenario is another ground to get auto insurance, so you can protect your vehicle if someone vandalized it or has stolen it. You should not ignore getting car insurance as it helps you cover your loss whenever this kind of situation happens. 

*Auto insurance makes it easier to file a claim.

Comprehensive auto insurance makes it easier and faster to file a claim afterward. The insurance provider will give the list of documents and requirements for the assertion and the procedures on what to do, even the list of car repair shops where you can go with your vehicle after the accident.

It would help if you waited for your claim to be processed after you had submitted all the necessary documents and requirements. 

Choosing the Right Auto Loan Insurance

Choosing the Right Auto Loan Insurance

Choosing the right auto insurance provider is a little bit complicated and even confusing. To do that, we have listed some essential factors you need to consider in selecting which auto insurance policy is suitable for you and your vehicle.

*You have to determine your needs.

First of all the thing, you need to do is to determine your needs. This includes looking out for your way of life and the kind of vehicle you own. You may consider getting the best and premium car insurance policy if you drive a luxurious car because of its many coverages.

There is also an auto insurance policy that includes acts of God, which is best for people who live in a disaster-prone area. So whatever lifestyle you have, if you want a higher level of protection for you and your vehicle, you can always choose the best premium insurance policy. 

*Do a company track record before signing a contract.

Checking information and tracking someone’s record is not very hard nowadays because of the rampant use of the internet. Most people at present are already tech-savvy and know how to use technology.

So before signing a contract with an auto insurance provider, it is best to track a record first and ask people who have already experienced their service. You may check reviews online from their actual customers because some companies may look good on paper but not according to the customers who may experience a not so pleasurable service.

Ask a lot about what they have experienced with the insurance company, particularly during their claims processing. This will help you decide whether to select them as your provider or look for another.


Getting auto insurance should not be taken for granted, especially if you are a new driver. While nobody wants to be in any car accident, and even if you are the most responsible driver on earth, always remember that many on the road are not.

So bear in mind that having insurance is so much better than regretting not having this. It will give you so much peace of mind while driving, knowing that whatever happens, you won’t have to be saddled by a lot of expenses after meeting any road incidents.

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