Acts of Nature Coverage: Why Every Car Owner Needs It
Many Filipinos save for years or turn to financing to get their own vehicle. With unreliable public transport, having a vehicle offers them safety, convenience, and a sense of security. But in a country that is hit by an average of 20 typhoons per year, not to mention other calamities such as earthquakes, volcanic eruptions, and flash floods, car ownership undoubtedly comes with many risks.
For most car owners, comprehensive insurance seems enough. However, not all policies automatically protect against natural disasters. This is where Acts of Nature Coverage is crucial. It’s a small add-on to your insurance premium, but one that could save hundred of thousands in unexpected repair costs.
What is Acts of Nature Coverage?
Acts of Nature Coverage—sometimes called Acts of God Coverage (AOG)—is an add on to a comprehensive car insurance policy. It covers damages caused by natural calamities beyond human control.
What It Covers:
- Floods and flash floods
- Typhoons and strong winds
- Earthquakes and landslides
- Volcanic eruptions and ashfall
- Falling objects from natural disasters
Without this, a car submerged in flood or damaged during a storm won’t be covered, even if you have a “comprehensive” insurance.
Why it Matters in the Philippines
Filipinos are no stranger when it comes to extreme weather. The question isn’t if a natural disaster will strike—it’s when.
- Flooding in Metro Manila: Cities like Marikina, Malabon, Manila, and some parts of Quezon City are notorious for floods, even after just a short time of downpour.
- Typhoons: Storms like Ondoy (2009), Paeng (2022), and Carina (2024) left thousands of vehicles damaged beyond repair.
- Earthquakes: The West Valley Fault runs through Metro Manila, making earthquake preparedness a real concern.
- Volcanic activity: The Taal Volcano eruption in 2020 affected vehicles as far as Metro Manila with ashfall and corrosive damage.
For a country this vulnerable. Acts of Nature Coverage isn’t just a luxury—it is a practical survival insurance for your vehicle.
How Much Does It Cost?
Contrary to popular belief, this specific add-on is relatively affordable, especially when compared to potential damages.
- Cost range: Around 0.5%-1% of your car’s insured value.
- Example: For a ₱500,000 used car, Acts of Nature Coverage costs just ₱2,500-₱5,000 per year.
- In comparison: Engine replacement worth ₱150,000-₱300,000 due to flood damage—or worse, a total loss.
To What Extent Does Acts of Nature Cover?
Acts of Nature Coverage pays for damages up to your car’s insured value.
- If repairs cost less than the insured value, insurance pays for the full cost.
- If repairs exceed about 75% of the car’s value, it is declared a total loss, and you are given the fair market value in cash instead.
In short: For only a price of one tank of gas per month, you are buying peace of mind.
What Happens Without Acts of Nature Coverage?
Imagine paying your monthly cat loan installment, only for your vehicle to be submerged in flood the next day. With no Acts of Nature Coverage:
- Your insurance provider won’t cover the damage, leaving you to shoulder repairs.
- Repairs could cost as much as the vehicle itself.
- If you’re under financing, you’ll still be required to pay your loan—even if the car no longer runs.
Without coverage, car ownership becomes a heavy financial burden.
How Acts of Nature Coverage Protects Your Finances
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Peace of Mind in Flood-Prone Areas
If you live in the Metro or in provinces prone to flooding, this coverage ensures your car isn’t financially doomed by one bad storm.
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Safeguards Your Loan or Financing
For car buyers under financing, the car serves as a collateral. Insurance with Acts of Nature Coverage protects both you and the lender.
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Keeps Car ownership Affordable Long-Term
Instead of shelling out from your savings or borrowing money for costly repairs, you spread the cost into small and predictable premiums.
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Protects your Investment
A car isn’t just a mode of transportation—it’s often seen as one of the biggest financial assets a Filipino can own. With Acts of Nature Coverage, you are able to preserve its value.
How to Get Acts of Nature Coverage in the Philippines
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Check Your Current Insurance Policy
Don’t assume your “comprehensive insurance includes Acts of Nature—always ask! It’s usually an add on.
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Ask Your Insurer
Request a quote for adding the coverage. Prices vary depending on the car’s age, value, and brand.
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Compare Insurance Providers
Some insurers lower premiums or bundle Acts of Nature Coverage with other benefits.
FAQs About Acts of Nature Coverage
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Is it mandatory for car loans?
Some banks and financing companies require it, especially for cars in flood-prone areas.
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Does it cover partial damage or total loss only?
Most policies cover both, but it still depends on your insurer. Carefully check your provider’s terms.
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Is it worth it for older vehicles?
Yes, if the car is still in good working condition and used regularly, protecting it makes financial sense.
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Can I add it to my current plan?
Yes, many insurers allow upgrades during your policy term.
Final Thoughts: Don’t Take the Risk
In a disaster-prone country like the Philippines, Acts of Nature Coverage is one of the smartest financial protections a car owner can get. For a minimal annual cost, you will be spared from massive financial stress whenever calamities strike. So, whether you own a brand new SUV or a financed used sedan, protecting your vehicle ensures that you won’t wallow in debt and end up with no car.
