News & Events

Which Issues Are Covered by Standard Comprehensive Car Insurance?

Man assessing the damages on a black car

Introduction 

Many insurance products benefit those who have vehicles. One example is the compulsory third-party liability (CTPL) insurance, which is required by law for all car owners. Car drivers can also get comprehensive insurance. It isn’t mandatory, but it offers broader coverage.

Comprehensive car insurance costs can vary, depending on your provider. However, no matter the price, it’s still advisable to buy it since it’s highly beneficial for all vehicle owners and drivers.

This type of policy can help cover the costs of damages, injuries, and more. Read on to learn about the typical coverage of this insurance product

Issues Covered by Insurance

Both old and new drivers are encouraged to buy comprehensive car insurance. Unlike CTPL insurance, this product covers much more than affected third parties. Here are some examples:

Damage Due to Road Accidents

No matter how careful you are when driving, there will always be some likelihood that you get into an accident. You might collide with a vehicle running too fast or crash into immovable objects along the road, like poles, bollards, and walls.

When such situations arise, your vehicle can get damaged or even totaled. Having the car fixed can cost quite a lot, depending on its state after the accident. To avoid significant financial losses, you can use your comprehensive car insurance to cover the total or a portion of the cost of repairs.

Damage Because of Natural Disasters

Another way your car can get damaged is through natural disasters, otherwise known as “acts of nature” or “acts of God.” These are completely unpredictable situations, so they’re arguably impossible to prevent. Here are a few examples:

  • Your car gets flooded due to a typhoon
  • A landslide happens nearby and wrecks your car
  • Large tree branches fall on your car and cause damage
  • Insects and animals accidentally get inside the car
  • Your car falls into a ditch after an earthquake

There are plenty of other examples that can be considered force majeure. Speak with your insurance agent about this topic before buying a policy if you want a more thorough explanation.

Damage Caused by Break-Ins or Theft

Your car, whether old or new, can become a target for thieves and other people who want to cause mischief. The entire vehicle is harder to steal, so individuals who are up to no good may try to take something valuable inside the car. It can be a phone, bag, laptop, or anything that looks expensive.

To steal your valuables, these people would need to break your window or pry your door open. These types of damages can be covered by your comprehensive car insurance. However, keep in mind that the insurance company will not pay for or replace the stolen item. The policy will only cover the costs of repairs to fix your window or door if they were broken due to the incident.

Issues Not Covered by Insurance

Some car issues are not covered by comprehensive insurance. They include technical or mechanical problems, such as engine failure and normal wear and tear.

Other common problems not covered by insurance are:

  • Flat Tires
  • Broken AV Equipment
  • Malfunctioning Air Conditioners
  • Failures in Electrical Wires
  • Factory Defects

If you experience such issues, you might have to shell out money from your own pocket to pay for the repairs. Another option is to buy another type of car insurance that covers such problems.

Since there are car issues not covered by comprehensive insurance, you might think it’s no longer worth it to buy this policy. However, that isn’t the case because comprehensive insurance will still save you from debt or significant repair expenses in case your car gets wrecked or damaged due to various external causes.

Get Comprehensive Car Insurance Today 

If you are looking for the best car insurance for young drivers, you can seek help from Cebuana Lhuillier. We are a trusted provider of various insurance products that benefit people from all walks of life.

For drivers and car owners, we have AutoCARE, our version of the standard comprehensive car insurance. We know car insurance costs can be expensive, so we developed a policy perfect for individuals with tight budgets. Despite its affordability, it still covers different kinds of damage, including natural disasters, vehicular collisions, and road accidents.

The best thing about Cebuana Lhuillier’s car insurance products is they are easy to buy. All you have to do is visit your preferred Cebuana Lhuillier branch and tell the staff that you want to purchase AutoCARE insurance. They will give you a form to fill out with your name, address, and other important information. Once you’re done, hand it back to the clerk and give them your payment. Wait for a few minutes for them to issue your Certificate of Cover.

Of course, taking care of your car is still the best way to avoid unnecessary repair expenses. However, if your vehicle gets damaged, you won’t experience any hassle claiming your insurance from us! Simply visit your preferred branch and tell the staff about your plan to claim. Hand them the required documents, which include IDs, incident reports, and the Certificate of Cover. The staff will then walk you through the claiming process.

Conclusion 

Buying comprehensive car insurance prevents you from incurring significant financial losses in case your vehicle gets damaged. It might not be lawfully required, but having it gives you peace of mind that you can easily finance repairs for wreckage due to natural disasters, vehicular accidents, and other common causes.

If you know where to go, you don’t have to spend so much on comprehensive car insurance costs. Cebuana Lhuillier offers a variety of affordable microinsurance products, including AutoCARE, which protects you and your car from possible accidents on the road.

For more information about this product, feel free to visit any of our branches and speak with our staff. Alternatively, you can call our hotlines and talk to our agents.