"Acts of God" Car Insurance Coverage: Why Is It Important And How Much Does It Cost?
This coverage protects and indemnifies the vehicle owner against loss of or damage to the motor vehicle and its accessories and spare parts resulting from flood, typhoon, hurricane, volcanic eruption, earthquake, and other natural catastrophes. This is also sometimes called Acts of Nature.
Who would ever forget the devastation caused by typhoon Ondoy last September 29, 2009 the entire nation was shocked to see the devastation caused by tropical storm Ondoy or otherwise known as Ketsana. Few people could have predicted the strong flash floods, devastated houses, deaths of lots of Filipinos, and lots of submerged cars and houses. Who would have expected cars submerged or floating around just like Styrofoam even to those high valued areas such as Magallanes and Buendia. Some insurance companies used to give Acts of God as a free coverage on the Comprehensive insurance. It was only after the devastations caused by the typhoon that insurance companies and car owners realized the value of Acts of God as an added coverage.
Insurance industry were bombarded with lots of calls and claims nationwide. A lot of motorist were shocked to realize that flood is not covered by their car insurance. Comprehensive insurance does not cover flood. Acts of nature is just an added peril, an added option that a car owner can add on top of the usual comprehensive car insurance. Soon after, car owners always asks for Acts of Nature as a standard add on in their Comprehensive insurance. To add Acts of Nature coverage, the cost usually is an additional 25 to 35 percent of the comprehensive premiums. A Php700,000 market value of a 2012 Honda Civic may have an Acts of Nature coverage of Php3,000 to Php5,000 coverage. Having a comprehensive insurance with Acts of Nature coverage may still be just an added cost to some car owners. Php3,000 is typically already a normal full tank of a car.
People across Philippines have been asking if Acts of Nature should be a standard inclusion in their comprehensive insurance. One of the good things that was brought by the typhoon is the realization among Filipinos that having a comprehensive insurance does not necessarily cover your for all, as in the case of uncontrollable forces of nature. Considering to have Acts of Nature coverage, determine the circumstances of how and where you use your vehicle taking into consideration of its exposure to natural calamities, ask for recommendations from people you trust, check the legality of the insurance company you would be dealing with and canvass for premium rates and roadside assistance among different insurance companies. To simply the process for you, you may visit eCompareMo.com for a free comparison of motor insurance coverages in the Philippines.