Destroying Your Car Insurance Policies

How People Ruin Their Car Insurance featured image

Car accidents are just one of those unfortunate things that can happen when you least expect them to. Drivers will usually take precautions and drive safely, but there are still some factors outside of their control, such as people who drive recklessly or slippery roads that can lead to harmful accidents. For residents of Manila, getting car insurance is very much needed to ensure that both the driver and vehicle are protected.

However, some people get insured but unknowingly ruin their insurance plans as they receive damages that are not covered by their insurance. Here are some of the ways that people destroy their comprehensive car insurance ph.

Don’t Pay Your Insurance Premium on Time

Some car owners let their insurance policy lapse because they forget to pay their insurance premiums. These lapses will usually cost more over time. Missing a payment can jeopardize your insurance coverage. The insurance company can suspend a car’s insurance coverage until they have paid their required bills. Within the time that the insurance is suspended, getting in an accident can prove to be very detrimental for the car owner.

Let Other People Drive Your Car

Make sure that you do not let other people drive your car because this can be a huge mistake, especially if they are not part of your household. To benefit from it, you should inform the insurance company about the licensed drivers in your home. They will be the ones granted access to drive your car if need be.

A teen driver who has just gotten their driver’s license will have to be added to the insurance policy as soon as possible. It is fortunate if the insurance company will revise the insured’s premiums in order to include the teenager or if they will figure in an accident. However, what usually happens is the insurance company just drops the policy altogether and creates a new one.

It is common for drivers to lend their car to a friend for a few weeks or perhaps even months. However, doing this without letting the insurance company know can be a mistake because any accident your friend goes through will not be covered by your insurance. Notify the insurance agency that you will be lending your car just to be sure in case any mishaps happen.

You Sold Your Car to Your Son but Still Carry the Insurance on it

Usually, people will sell off their cars to their relatives when they are ready to buy a new one. They may even want their children to inherit the vehicle. When somebody else finally owns the car, the original owner no longer has insurable interest on the vehicle and their insurance no longer covers the car. If the new owner is a minor, they need their parents or guardians to get new auto insurance.

Not Getting Uninsured and Underinsured Motorists Coverage

A common mistake for people is overlooking getting uninsured and underinsured motorist coverage because they think that they probably won’t need the additional protection and their insurance can already cover their needs. However, not all motorists in the Philippines are insured or have enough, and drivers must be able to protect themselves from other such motorists further.

The additional coverage can protect a driver from an uninsured or underinsured motorist in case the auto leads to the driver sustaining injuries. Without the coverage, the driver might have to pay for the medical expenses using his own money.

Submitting Too Many Small Insurance Claims or Getting Too Many Tickets

Being insured does not give any driver the pass to do whatever he/she wants and act recklessly. They also cannot just make an insurance claim here and there whenever they want. Insurance companies consider every request that a driver makes and too many requests will lead to much higher rates. This could also hinder the driver from renewing the policy. Violating a traffic law or getting a ticket will also affect the insured driver’s insurance policy in a negative way.

Filing A Fraudulent Claim

Some drivers may try to file a fraudulent car insurance claim by faking or exaggerating an accident. Once the insurance company finds out that the insured filed a fraudulent claim, it will be rejected. Insurance fraud is punishable and those who commit this crime will be fined twice the amount of the claim and can serve up to two years in prison.

Using a Personal Vehicle for Non-Private Purposes

Most car insurance Philippines policies are specific on what they cover and will most likely exclude coverage for a personal vehicle if it is used for purposes outside of the coverage. A commercial or business-use insurance policy covers the risk that is not present with vehicles used for private purposes. If you are thinking about using your car for business purposes, then you must inform your insurance agent about it.

Getting your car insurance Cubao is very important on the fact that you are using it perhaps every single day. If your private vehicle is insured, then make sure that you do not use it for commercial ridesharing activities, or else your insurance claims will be rejected. There is also a chance that your insurance agency cancels your insurance policy.

It is best to prepare for any accidents that may come your way so make sure that your car is insured. Be mindful of the way you drive and refrain from any of the activities stated above. surety bond insurance Philippines 

To learn more about this topic, read this infographic by iChoose.ph.

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