10 add-ons must have for your car insurance policy

Today, millions of people already own a car. In fact, having a car is already perceived to be a necessity rather than a luxury. The good news is, buying a car these days is so much easier than it was before with the availability of financing options and many dealers offering discounts to sweeten the deal.

However,  owning a car also requires regular maintenance which many people find financially burdensome. The cost of the car's maintenance, fuel expenses, and car payments already drain the pockets of most car owners.

This gets worse if ever the car gets involved in any kind of accidents, which will cost a large sum of money to cover for repairs and/or pay for damages to other car or property, and possibly, medical expenses and hospitalization.

Even if you already have third-party insurance, you still don't have 100% immunity. In addition, comprehensive insurance is also not enough since it does not offer full coverage on all types of damages.

That is why car owners should avail add-ons in their auto insurance policy. These add-ons are helpful additions that improve the coverage of your insurance policy.

Philkotse.com prepared some add-ons that should be included in your car insurance policy:

1. Zero dep

Zero dep or zero depreciation are starting to get popular with the increasing awareness among car owners. With zero depreciation cover, you can ensure that you'll receive a full claim in cases of accidents, without any deduction caused by the depreciation on the value of car parts replaced.

With zero depreciation cover, you can ensure that you'll receive a full claim

2. NCB retention

NCB stands for No Claim Bonus. It's a reward for insurance policyholders who haven't claimed their auto insurance policy in the previous year/years. It can be accumulated over a span of time, to provide a discount that can reach for up to 50 percent.

But, if there are claims or even a single claim on your insurance policy, it can bring the NCB back to zero percent.

NCB is a reward for insurance policyholders who haven't claimed their auto insurance policy in the previous years

That can be avoided by taking an NCB retention add-on. This add-on will keep your earned NCB protected at its eligible percentage. Even if you acquire a single claim that is subject to a certain sum, it will stay at the current percentage instead of going back to zero percent under the basic policy.

>>> Read more: A detailed explanation of car insurance and how it works.

3. Roadside assistance

Many insurance companies are already focusing on giving road-side assistance benefits to their customers. Under this add-on, customers can avail benefits. They just have to pay an extra premium.

However, there are companies that already provide the road-side assistance benefits as part of their basic insurance cover under the value-added services.

Under the roadside assistance add-on, customers can avail benefits. They just have to pay an extra premium

4. Engine cover

Above all the car parts, the engine is the most expensive. Repairing it, particularly if it is damaged by flooding, is a costly affair. Which is why engine cover is a must-have, especially if your area is prone to flooding during rainy days.

The engine protection cover provides coverage for car engine damage because of water ingression resulting in the hydrostatic lock. This benefit also covers other cases like damage to the gearbox and lubricating oil.

>>> Also check: 10 must-know things to consider before buying car insurance in the Philippines.

5. Key replacement

Lots of insurance companies reimburse the expenses of ignition key replacement but only up to a particular limit. However, the reimbursed amount is usually way less compared to the total cost of the key replacement.

Lots of insurance companies reimburse the expenses of ignition key replacement but only up to a particular limit

6. Daily cash allowance

This allowance covers the car owner’s transportation costs. It is paid only if the car is needed to be in the for 3 to for days or more. In general, most car repairs do not take too many days thus this add-on hardly comes to use.

7. Return to invoice

The return to invoice add-on is only available for new cars and only for the first year of the vehicle. The 100 percent of the car value (without 5% depreciation deduction) will be refunded to the vehicle owner if the car is totally damaged.

The return to invoice add-on is only available for new cars and only for the first year of the vehicle

Aside from the original invoice value of the vehicle, the paid road tax and registration is also refunded. But even if there’s no return to invoice add-on, the 95% is still payable for the total loss case. Take note that this add-on cannot be claimed for small damages and repairs.

It is only used to reimburse the value of the car that has been damaged beyond repair or stolen cars.

>>> Worth reading: What kind of car insurance in the Philippines fit you the most?

8. Cost of consumables

In the standard auto insurance, the expenses of consumable replaced like the bearings, engine oil, bolts, and nuts are excluded in the claims. But if you opt to avail this add-on, the cost of those consumables will be included in the claim.

9. Multi-year policy

This add-on covers two-wheeled vehicles for a span of three years. This policy will ensure the coverage for legal liability for death, injury, owner-driver as well as the optional accident cover for the pillion passenger. It also covers damage to property caused to the third party in case of an accident.

This add-on covers two-wheeled vehicles for a span of three years

10. Accessories cover

This add-on is suitable for car owners who customizes their vehicle. However, they should be very careful about modifying their vehicle. Their changes in the car should not nullify its insurance. The mechanical setups or modification made in the engine usually don't come under the basic or standard policy.

In addition, there are still limits on the value of customization that can be included under any policy. It’s a must to check the limits of the policy with the agent before modifying your car.

Accessories cover add-on is suitable for car owners who customizes their vehicle

>>> You might want to read: Car insurance in the Philippines: Comparison of Comprehensive & Liability insurance.

11. Personal belongings cover

Today, people always travel with their expensive gadgets like tablets, laptop, and smartphones. Those gadgets can also get damaged in events of car accidents.

The damages in those gadgets are not included in the car insurance unless you avail personal belongings cover. It also covers the loss of any other personal belongings from the vehicle. 

The damages in those gadgets are not included in the car insurance unless you avail personal belongings cover

Just keep in mind that too many add-ons substantially increase your insurance premiums. This is why it is important to only avail add-ons that you really need. Choosing the right car insurance policy is essential for your car and your own security.

Add-ons, on the other hand, will greatly improve your auto insurance plan if you buy them according to your needs. This is why you have to choose wisely!