In the previous post on automotive insurance, we talked about the mandatory CTPL or the Compulsory Third Party Liability. Today we will discuss the most common and highly advised type of auto insurance which is the Comprehensive Insurance.
Basically the Comprehensive Insurance covers all types of coverage as listed below:
1) Compulsory Third Party Liability (CTPL)
2) No Fault Indemnity
3) Loss or Damage
4) Excess Liability Insurance
- Excess Bodily Injury
- Third Party Property Damage
Additional Optional Coverage:
a. Auto Passenger Personal Accident
b. Acts of Nature (Act of God)
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| Types of Auto Insurance Coverage |
Since the prevalence of unfortunate events in the Philippines the past few years; such as Yolanda, earthquakes and the like, insurance companies have opted to offer certain coverage as an additional cost such as the Acts of Nature (AON) on top of the comprehensive insurance that a motorists acquires. Adding an AON on your policy will just be an extra P1,000 up to P2,500 on average for the coverage of your vehicle (depending on make and model), which is not that bad compared to having to pay for the damages of unforeseen circumstances in the future out of your own pocket.
Comprehensive auto insurance pretty much covers all the damages of your car when you get in a jam. However certain incidents are not covered when for instance your car gets a dent from a falling coconut. For this, it is a distinct advantage to add Acts of Nature in the coverage which covers the damage to your vehicle resulting from events that are not man-made (including the coconut).
The following week, we would tackle what is a Third Party and the liabilities involved. This is very important to learn as we drive our vehicles around Cebu/Philippine traffic.
Be courteous and Drive Safely!
Photo Courtesy: moneymax.ph
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