Being the Corporate Assistant of the Company, my job responsibilities include the auto insurance renewal. Last week I got two new Auto Insurance Quotes and since I have no idea how it works out, I had to send an email to my boss’s friend and asked for an advice whether we will continue and renew the services with the existing insurance company. They advised that we take the one with the higher coverage for third party because the P100k will never be enough to cover the expenses if ever you will hit another car which is much expensive and incurred many bodily injury.
They even cited an example that:
If you hit a Mercedez benz with a market value of P2,000,000 and the damage you caused to the car is estimated P300k then you will have to shoulder the P200k because you only have coverage of P100K. Not to forget that the difference in the premium for a higher coverage third party liability is very minimal.