Buying a brand new car can be tricky, not to mention expensive. It costs a lot of money, plus you have to deal with depreciation of the car’s value. Could you imagine buying an P800,000 sedan, only to have a market value of around $650,000 the next year? Yes, it does depreciate like crazy, so why should you settle for a brand new car?

Here’s why most people in the Philippines are purchasing used cars. Unlike Singapore that will most likely make used cars as an impractical investment, in the Philippines, even 30 year old cars remain available in the market. One question that most people ask is if their car can still be insured?

Why is this an important question to address? Given the number of accidents that you may encounter on the road, it is imperative to take the necessary precautions. For someone who drives on a day to day basis, auto insurance makes a huge difference in the Philippines. Here are factors that will determine if your car can still be insured.

Age of the vehicle

Wear and tear is always a factor to consider. For instance, the average car in the Philippines runs around 10,000 kilometers annually. If you take into consideration a 20 year old vehicle, that’s a lot of road mileage that translates to wear and tear. Typically, those within 10 years old are the only ones insured.

In 2014, given the 3.1 million vehicles in the Philippines, around 1.7 million are considered old and over 10 years old. This simply means that millions of cars are most likely going to be denied by car insurance companies.

Condition of the vehicle

Car insurance wasn’t made in order for you to have a discount on repairs. It is imperative that a car has to be in running condition before it gets covered by insurance companies. This is also part of the reason why older cars are not really covered by the car insurance companies.

Cost of repairs

If the cost of the repairs will be more than the cost of the car if sold in the market, then most likely it is not going to be covered by an insurance company. It makes no sense to repair something that doesn’t cost to anything. If this is the case, you’ll never find an affordable car insurance for your vehicle.

As rule of thumb, you want to look at the worst case scenarios that you could experience while driving in the Philippines. Finding the right affordable car insurance can already be challenging; however, getting an older car insured can be a bigger challenge.

As rule of thumb, it is highly suggested to purchase a car that is somewhat within the 10 year limit. This gives you more options as you try to look for the right company. Taking a mechanic with you to give you an idea about the condition of the car could make a huge difference. Also, asking the car insurance companies prior to purchasing the car could give you an idea which of the cars in the market makes the most sense for you.

Next, you want to make use of technology that could give you the edge towards having the best car insurance. Sites like iChoose.ph offers car insurance comparison which you could use to know what each company offers.