Why should you get insurance for your trucks?
- To protect your business from liabilities
- To keep your cargo insured
- To comply with government requirements
When it comes to insuring vehicles in the Philippines, Japan surplus truck or not, businesses have to decide on the coverage of their auto insurance. Since trucks for commercial use are driven frequently for business purposes, there comes a need for businesses to keep themselves protected from unforeseen problems down the road. An example of those who need commercial auto insurance would be those who operate in trucking.
All that said, however, despite the widely known fact that insurance is important, many still choose to not avail it. There are many possible reasons for this: the lack of money, the desire to cut costs, and/or the belief that insurance doesn’t bring anything to the table. Although there are also individuals who don’t have any kind of auto insurance, more often than not, it’s the business owners who skip this process.
If you’re included in this category of people who use trucks for business, then we highly recommend that you get commercial and cargo auto insurance for your vehicles. There are more good reasons to avail of insurance than there are to ignore it, and we have them all listed below!
Protects Your Business from Liabilities
The main purpose of auto insurance, or any insurance for that matter, is to protect you from damages and liabilities. As you already know, once you get into an accident and it’s proven to be your fault, you are legally required to pay fines and fees. On the other hand, even if an accident isn’t your fault, you will still have to cough up money for repair costs which isn’t a measly amount, especially for a commercial truck.
Without any kind of insurance, you will have to shoulder this financial responsibility on your own. With proper insurance and the right kind of coverage, however, you at least have someone, specifically your insurance provider, to share the burden with. Naturally, they won’t cover all the costs, but the amount they can give you are sure to help ease the financial load.
Some people like to believe that they’d never be involved in any kind of accident, but that’s wishful thinking. The risk is always there, which is why insurance is such a huge necessity.
To Keep Your Cargo Insured
Many commercial truck owners, especially those who operate small businesses, have been led to believe that commercial auto insurance is enough to cover their vehicles; that they are protected from any liabilities that may come with using trucks for commercial purposes. What they don’t know is that there is only partial truth behind this.
Commercial auto insurance and cargo auto insurance are two completely separate things. Commercial insurance only covers accidents and vehicular damage that may happen to your truck while you’re out on a drive. If you stick with that specific insurance policy, damages endured to the cargo, even when it’s being used for work – i.e. transporting goods or delivering packages – will not be covered.
As a result, your trucks, drivers, and business will be at great risk. These two insurance policies are kept separate for proper distinction, so it’s best to go with both policies if you plan to carry high-value cargo with you.
To Comply with Government Requirements
If the above arguments won’t convince you to get insurance for your commercial truck, then maybe the law can just give you that push you need. It’s highly unlikely that you aren’t aware of this, but if you were, then let us be the first tell you that auto insurance is required by law.
Of all the auto insurance policies and coverage available, one, in particular, is mandatory: the Compulsory Third-Party Liability (CTPL), and this goes for both personal and commercial vehicles. The CPTL is a basic insurance policy that provides protection against any accident that involves causing bodily harm to a third party.
What this means is that if any of your drivers or operators happen to get into an accident and cause injuries onto another human being, your insurance provider will cover P100,000 of overall costs. The rest, of course, will be your responsibility.
Without a CTPL, you will not be able to register your trucks at the Land Transportation Office (LTO). Failing to properly register your trucks for commercial use will then prevent you from performing necessary business operations.
Auto insurance is an important and necessary part of owning and using a vehicle in the Philippines, Japan surplus truck or not, although it is hard to deny the fact that commercial vehicles are in much more need of it than those used for leisure. After all, businesses who primarily use commercial trucks stand to lose revenue if they aren’t able to properly register their units at the LTO – and they won’t be able to without proper insurance.
As a business owner and/or truck operator, you should be well aware of this fact and refrain from skimping out on insurance. We understand that it may seem costly at first, but we can assure you that the investment is certainly worth it in the long run. Aside from giving you protection from liabilities, knowing that you followed requirements and are running your business legally should give you and your truck operators some peace of mind!