If a certain person is purchasing a brand-new vehicle through a car loan, then chances are that person doesn’t want to shell out large amounts of cash in one go. That means additional expenses like car insurance can sometimes go overlooked.
This isn’t really a surprise, especially since annual car insurance costs are often equal to (if not bigger) than the down payments for the brand-new cars themselves. If you’re only willing or able to pay as much as, say, P20,000 for the initial DP, then there’s a slim chance that you’ll want to pay double that amount (and regularly at that) just to have your car insured. “Mag-i-ingat na lang ako,” right?
Of course, you’ll never know if and when you’re ever going to need your insurance but it’s always better to have it. That said, the sad truth is, not everyone—even buyers of brand-new cars—can afford it.
There’s one new offering from the Bank of the Philippine Islands (BPI), though, that just might do the trick. The company, in partnership with BPI M/S Insurance Corporation, has just rolled out the BPI Auto Loan Multiyear Protect, a loan solution that combines monthly amortization payments with the monthly installments for car insurance into one package.
This allows better flexibility for customers, and will also allow them to pay lower upfront costs for insurance. The insurance policy included in this offering covers the entire life of the auto loan, and all the payments are incorporated into the monthly amortization costs.
Multiyear Protect also entails a Guaranteed Asset Protection (GAP) insurance coverage, which provides up to P200,000 additional coverage in case the vehicle suffers from total loss.
“The Multiyear Protect prioritizes our customers’ convenience and peace of mind because it was designed to eliminate the financial worries and administrative hassles a typical car loan client experiences today,” said BPI Retail Loans group head Dennis Fronda. “Auto Loan Multiyear Protect is one of our ways to show our commitment to provide customers with reliable and relevant financial solutions, so we can all have opportunities for better times ahead.”
Are any of you applying for a car loan anytime soon? How does an option like this sound to you?