This article was published on May 9, 2018 and was updated on November 18, 2019.
Getting a comprehensive car insurance policy is a smarter decision than just settling for the government-mandated Compulsory Third Party Liability (CTPL) insurance. Comprehensive insurance provides better protection against the financial impact of car damage and theft, personal accident, and property damage, among others.
But don’t be misled into thinking that “comprehensive” means “complete” in car insurance. Some benefits you need as a motorist may not be included in the standard package and are instead offered as optional car insurance add-ons or riders.
Here are eight car insurance add-ons or riders to consider when purchasing a car insurance policy in the Philippines.
1. Roadside Assistance
Roadside assistance from an insurance provider is extremely helpful when your car breaks down due to electrical or mechanical issues, flooding, or a road accident. During a roadside emergency, just ring your insurance company and let them know what happened, and help will be on the way.
When choosing an insurance policy, make sure your car insurance add-ons include a 24/7 roadside assistance coverage. This will save you from the headache of dealing with your stalled vehicle alone on the road.
Roadside assistance may include the following benefits:
- Emergency towing
- Vehicle removal using a crane
- Jumpstarting a dead battery
- Fuel delivery
- Tire change
- Locksmith service
- Motor shop referral
- Alternative travel assistance
- Overnight hotel accommodation
- Hospital admission assistance
- Ambulance dispatch
- Relay of urgent messages
- Coordination with the police
- Anti-carnapping service
Some of these services are limited only to a certain cost and number of events, as well as locations in the Philippines. Check these details with the insurance provider before you buy a policy from them.
2. Acts of Nature or Acts of God
With the Philippines being among the world’s most disaster-prone countries (1), having an Acts of Nature (AON) coverage for Filipino car owners is a must rather than an option.
Regardless of where you live—disaster-prone or not—you need protection from the horrible effects of natural calamities on your vehicle. AON gets you covered, for instance, when your car gets stalled due to flooding when you’re stuck in España.
Also, if you’ll finance your new car via an auto loan, the bank will require you to get an Acts of Nature coverage along with your car insurance policy.
Not all car insurance providers in the Philippines, however, include an Acts of Nature or Acts of God coverage in their comprehensive car insurance packages. These insurers offer AON as one of their optional car insurance add-ons.
Acts of Nature may cover these natural events:
- Volcanic eruption
When purchasing an insurance policy for your car, be sure that the essential AON car insurance add-ons are added to your package. Some policies may not include coverage for flooding or earthquakes, so keep an eye out for the AON exclusions.
3. Personal Effects Coverage
Only a few car insurance companies in the Philippines offer a personal effects coverage, an add-on that covers damage or loss of personal belongings. This benefit is useful if you often keep valuable items inside your vehicle, like your laptop or camera, for example. This car-insurance add on may fully cover the items stolen from inside your car.
4. Loss of Use
Be prepared for when you can’t drive your vehicle, like when it’s damaged or stolen. Having a Loss of Use car insurance add-on gives you peace of mind knowing that while your car is at the repair shop, your insurance company will provide a temporary car, transport service, transportation allowance, or reimbursement of your travel expenses for 10 to 15 days..
5. Riots, Strikes, and Civil Commotion Coverage
Yes, some comprehensive car insurance policies cover vehicle damage due to riots and protest actions on the streets. In a country where people freely express their political beliefs, things can get nasty for your car if it happens to be just there in the scene.
With a Riots, Strikes, and Civil Commotion (RSCC) coverage, your car insurance company may pay for the repairs for dents from kicking, scratches, broken mirrors, shattered windows and windshield, and other forms of vehicle damage caused by riots.
Remember during the EDSA Revolution when Erap’s frenzied and raged supporters burned down a media-owned vehicle? If you live in areas like Commonwealth Avenue and Batasan in Quezon City (where the SONA is held yearly) and Mendiola (where a lot of rallies happen, too), it makes sense to get an RSCC coverage. Even if you don’t live or drive in these areas, it’s still wise to have this car insurance coverage because you never know when riots will strike your car.
6. Lost Wage Recovery
The Personal Injury Protection (PIP) is a popular car insurance coverage, but not many insured car owners know about its lost wage recovery benefit during an accident. Let’s say you’re injured after a car collision, and it’s gotten so bad that you can’t go to work. This PIP benefit allows you to reimburse some or the entire wage you’ve lost while you’re recovering from the injury.
7. Pet Injury Coverage
Do you often tag your furry friend on your road trips? Having a pet injury coverage ensures that you can pay for vet treatments if your pet acquires injuries from a vehicle collision. This car insurance add-on also covers vehicular accident-related deaths of pets, allowing you to give your pet a decent burial.
8. Legal Assistance
Dealing with legal matters due to a vehicular accident can be stressful and expensive for any car owner. A legal assistance insurance coverage may likely be just an after-thought, but it’s worth considering because it eases the financial burden that comes with settling legal issues. It provides assistance in case of injury or death of a third-party individual or damage to property due to an accident involving the insured car.
The legal assistance coverage may reimburse your expenses for legal consultations, court hearings, or both
Car insurance companies charge an additional premium for every add-on you wish to include in your policy. So give your choice of car insurance add-ons a careful thought. Otherwise, you’ll end up either paying extra for something you don’t really need or saving on your insurance premiums but failing to get the coverage when you need it most.
- (1) Philippines among world’s most disaster-prone countries (Santos, 2016)