What Happens If I Stop Paying My Car Insurance?

Practicing safety precautions on the road often prevents car drivers from being involved in a car accident. However, car blunders are usually caused by ignorance and reckless acts, such as using mobile phones while driving, speeding, and driving under the influence of alcohol.

There are also minor accidents that happen on driveways or parking lots due to drivers’ silly mistakes. Situations like drivers unconsciously putting the gear on the reverse instead of drive or the car bumping onto the other car while reversing out of the parking spot can lead to minor blunders.

Whether it is a major or minor car accident, the thing that often experiences damage is the cars involved. And car damage usually requires expensive repairs, which may be heavy on the pocket of the drivers involved in the incident.

To prevent financial ruin from these car blunders, car owners must avail of a car insurance policy. It provides financial liability protection, primarily if all the persons who inflicted physical injuries during the accident are pointing their fingers at you as the culprit. Accordingly, it offers compensation for the medical expenses of everyone involved. Thus, preventing you from being forced to take a bulk out of your savings.

Car insurance Philippines also covers losses and damages from unexpected events, such as fire, theft, and other non-collision accidents. It serves as the primary protection for any possible losses the vehicle owner may acquire.

In the Philippines, it is compulsory to have a specific type of auto insurance. Before a car owner can register their vehicle at the Land Transportation Office, they must first acquire a car insurance policy. They may select to have a (Compulsory Third-Party Liability) CTPL insurance Philippines, which is the basic type of car insurance highly required by the Philippine government. It grants car owners a financial coverage of P100,000 and is only applied to the third-party persons involved in the accident. Or, they may choose to have comprehensive insurance, which offers a more advanced range of insurance protection besides the benefits provided by the CTPL, including medical expenses, theft, and vandalism.

Aside from selecting the type of car insurance, vehicle owners must also consider the location of the insurance company where they will avail their policy from. Car insurance Las Piñas is available for people living in the area. Getting an insurance plan in the city where a car owner lives will provide them convenience and easy access to their insurers if they need to make a claim.

The importance of having a car insurance policy cannot be stressed enough, especially when it comes to vehicle owners’ financial protection. It is more of a necessity than a luxury as it can save a car owner a significant amount of money if they get involved in an accident. However, before availing of a car insurance policy, vehicle owners have many things to consider, including which insurance company they should buy insurance from, what type of insurance they will buy, the cost of their premium, and payment options.

Furthermore, car owners must also consider if they can pay their car insurance premium consistently. Their inability to pay their premiums can lead to costly consequences. This infographic from iChoose PH discusses what will happen if vehicle owners stop paying their car insurance premium.

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