Is Your Car Insured?
Is your car insured? In the Philippines, you cannot register your car or any type of motor vehicle at the Land Transportation Office (LTO) without having it insured first. Other requirements include smoke emission test and drug test for the driver.
According to http://www.carinsurancerates.com, there are two types of car insurance coverage: Full Coverage and Liability Only Car insurance.
At the opposite ends of the car insurance spectrum are full coverage and liability only. In reality, there are many steps in between these polar opposites and there are even multiple levels of full coverage and liability only. However, car insurance can best be understood by first fully comprehending the differences between these two extremes.
In a liability only car insurance, it is regulated at the state level, and therefore, each state has its own guidelines concerning the minimum car insurance coverages that are required. One thing that is for certain, though, is that all states have laws regarding the minimum amount of liability coverage you must have in order to legally drive your vehicle. But what is liability coverage? It is insurance that covers damage you cause to other people (outside of your car) and their property.
In a full coverage car insurance, there are actually two forms of coverage on top of liability - comprehensive coverage and collision coverage. A motorist can elect to have comprehensive coverage without collision, but not collision without comprehensive. A car insurance policy with liability and comprehensive coverage would be something in between the legal minimum and “full coverage.”
Comprehensive coverage is sometimes referred to as “other-than-collision” coverage, or OTC. Obviously, it covers damages to your vehicle that arise from something other than a collision. Examples include theft, fire, weather damage, etc., but the insurance companies confuse the issue by including accidents with animals as part of comprehensive coverage, rather than collision. The logic behind this is that comprehensive is designed to cover things that are less likely to be your fault.
If you need car insurance, get a car insurance quote from their website. Check them out.
