Understanding the Coverage: What is Acts of God insurance?

Acts of God insurance, also known as acts of nature insurance, helps protect you and your car from unexpected expenses that arise because of damages done by natural occurrences. Acts of God is a legal term used for events that happen without the intervention of man.

This coverage include risks which cars are more prone to experiencing in the Philippines, like floods, earthquakes, and typhoons. The coverage also includes hail, tornadoes, wildfires, and hurricanes.

A common misconception is that if you have a Comprehensive Motor Vehicle Insurance, then the inclusion of acts of nature is automatic. This is not always the case. GoBear recommends looking at your current car insurance plan and checking if the coverage already includes "Acts of God" or "Acts of Nature" events.

How much does an Acts of God insurance coverage cost?

If you are still paying for your car loan, or your car is currently mortgaged, then an Acts of God Insurance is necessary. If not, it is an optional coverage that you need to request to be included in your comprehensive car insurance plan. Most insurers cover acts of nature claims of up to the *fair market value (FMV) of your car.

E.g. If you have a newly-bought 2013 Toyota Vios E 1.3L gas-fueled model with automatic transmission, which is currently valued at P450,000, then your car insurance company will cover risks under acts of nature for the same value. If anything happens to your car, due to flooding, earthquake or other risks under acts of nature, the insurance company will provide you with up to P450,000.

It's a different case if your car is a second-hand vehicle, 

*Fair market value is the estimated value of your car at the time of assessment. If you have a newly-bought car, then the FMV of your car is just how much you bought it for. Take note that the value of your car decreases by about 10% every year. Which means, if you want to renew your car insurance after a year, your car value (thus, the FMV) decreases by 10%.

Insurance Claims: How do I claim benefits?

An acts of God insurance coverage helps reimburse repair and replacement costs incurred from damages due to acts of nature. Often, you only need to provide the location of your car, when it was damaged and your current address. Also, most car insurance providers would only require that your car be assessed for the cost of repair in their chosen repair shop or casa.

Compare acts of God insurance online: Why choose GoBear?

With numerous car insurance companies in the Philippines, how will you know which one offers the best deal when it comes to your acts of God insurance coverage? GoBear takes the guesswork out of your decision-making process by making it easier for you to compare acts of nature insurance providers online. Best of all, GoBear is free to use, unbiased and simple to navigate. Learn more about how GoBear can help you make the best car insurance decision by checking out our FAQ page.