CONGRATULATIONS on you new car! But before you get too excited about taking it around town, there are things you really need to know and accomplish first.

Of course, you probably already know that you need to acquire a driver?s license before getting behind the wheel. And you need to get the vehicle registered with the Land Transportation Office, a process which will get you your car license plate and the latest sticker. And then, you also need to get the car insured.

These things will not only enable you to avoid any legal entanglements should any untoward incident occur, but will also make your first tryst with freedom?that comes with having your own set of wheels?worry-free.

Unfortunately, a lot of us often take for granted the issue of car insurance since it is already part of the process when getting your car registered with the LTO.

Should we even bother?

Yes, a lot. You see, the Compulsory Third Party Liability (CTPL) is often misunderstood because it only covers liabilities arising from accidents resulting in death, disablement and medical expenses of the person injured by your car, which does not include members of your household or family within second degree of consanguinity.

Under the law, the CTPL has a coverage of only P100,000. Beyond this amount, the offending party would have to cover the cost. Since a P100,000 coverage is really too small to cover third party liability, one is advised to get a comprehensive insurance coverage.

While this type of insurance does not cover damage arising from a car accident?you?ll need a collision insurance policy for that?you will be insured against theft or damage to the vehicle brought about by vandalism, fire, or from something you may no longer be able to determine (say, the dent in your car happened while it was parked and you were nowhere near).

A Comprehensive insurance could also protect you against the so-called ?Act of God,? which usually refers to events like storms, floods, lightning and other natural calamities, provided you specify this to your insurer.

?This is why, you need to shop around to compare the kind of coverage you will get from the insurance companies you are considering,? reminded Daisy Jacobo, chief of LTO?s Traffic Safety Division. ?Know your responsibilities in the event of an accident or mishap. While it is most important to read the contract, check first if the insurance company is legitimate and recognized by the LTO.?

Jacobo added that car owners may also consider including the so-called Voluntary (or Excess) Third Party Liability that most insurance companies here in the Philippines offer together with their Comprehensive insurance policy. The amount of this coverage may be set by the car owner and applies when the P100,000 amount provided under the CTPL provision has been exhausted.

?With this policy, you may be relieved of having to deal with the third party since it will be the insurance company that will take care of these things for you,? explained Jacobo. She said that although these things may be too much for newbie car owners, they should remember that accident is an occurrence that happens not in the usual course of things.

?If you scrimp on your coverage, you may be exposing yourself more to risk and headaches. This is why when comparing car insurers, check out all the sections and coverage they offer to see which items they reduced or deleted. This may explain why one insurer has a more affordable package than the other,? she explained.

Jacobo underscored that car insurance is one beneficial thing that a car owner could do for themselves: ?With the number of accidents and theft occurring here, it is essential for everyone to get another insurance coverage apart from the CTPL to secure both the vehicle as well as its owner in times of need.?