The Price of Having No Car Insurance

Bea Bongat

Owning a car is a goal Filipinos want to achieve, together with owning a house and building a secured future. Car ownership comes with numerous responsibilities but the benefits outweigh these responsibilities. Even if driving is much costlier than using public transportation, there’s no doubt about the convenience and efficiency owning a car provides. Owning a car is one thing, maintaining it is another. Car ownership comes with additional factors, such as maintenance and insurance, but why do many forego these?

The main reason would be cost. The expenses you incur while driving already take a chunk of your monthly budget, what more if you include maintenance repairs and your monthly insurance premiums? Even if your expenses are bound to increase, there’s a benefit to having insurance – you’ll have the peace of mind.

Below, 4 Filipinos share their experiences of the price of having no car insurance:

Kris* was a college student when she hit a BMW sedan. This resulted in both cars needing a paint job to cover the scratches. Even Mario*, another beginner driver, had bad luck estimating a turn, so his SUV hit a wall in the parking lot. A one-time paint job cost them Php 5,000 for each vehicle. Kris, seeing as it was her fault that she hit the BMW, had to shell out Php 5,000 to the owner of the BMW and another Php 5,000 to repaint her own car. Mario, having scratched his SUV three times, had to pay around Php 4,000-Php 5,000 each time.

A simple scratch can cost a few thousand pesos, what happens when your car needs more than a paint job? Lorna*, a professional in her 20s, experienced this when she hit a column with the front end of her Toyota Vios. Her bumper hit smack dab against the column and needed replacement. The cost of replacing a bumper? Php 20,000 – which was already a chunk of her monthly income for a one-time repair.

Joy* decided to apply for car insurance after her teenage daughter stepped on the gas and ended up accidentally hitting the side of a truck. He daughter was driving a Toyota Vios, but fortunately, both the sedan and truck were driving slowly since it was a turn. However, the damage was done, which resulted to broken headlights. When they took it to the casa, the cost of repairs was Php 60,000 to replace the headlights. It was much more than what they would have paid in annual premiums for a Vios. After that incident, Joy decided to get car insurance, so she wouldn’t have to worry next time her teenage daughter miscalculated a turn while driving.

As you can see above, minor repairs can run you up thousands of pesos. What more if your vehicle needed major repairs or total replacement in the event of flooding or a major accident? Your car insurance premium may take a heavy percentage of your monthly income, but it’s better to be safe than sorry. Having insurance reduces your stress after car accidents and gives you the peace of mind that you have the financial capacity to face this hurdle.

Be prepared before a car accident happens. MoneyMax.ph, a leading financial comparison website, can provide car insurance from various providers, so you can pick an affordable premium that best suits your needs. Even better, you can apply for insurance completely online by going to the car insurance comparison platform.

*Names have been changed as requested by the interviewees.

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