Top 10 must-have car insurance add-ons for Filipino drivers

So, you have purchased a car, now it’s time to take up the responsibilities and be a good driver. This not only includes driving carefully and adhering to traffic rules and regulations, but also obtaining car insurance. In the Philippines, Compulsory Third Party Liability (CTPL) insurance is a must; what about coverage? It doesn’t offer full coverage, motivating Filipino drivers to opt for the highly recommended comprehensive insurance and the add-ons. Together, they enhance your vehicle and financial protection.

While we have talked about comprehensive insurance multiple times in our previous blogs, it’s time now to shed some light on the car insurance ‘Add-ons’ that act as an extra shield. They offer protection against scenarios that your standard policy often overlooks, including natural disasters, third-party property liability, and riots.

Sure, this added protection comes at an extra cost, but when weighed against the cost of repairs, add-ons are undoubtedly a wise investment. In this article, we’ll be discussing the top ten car insurance add-ons available to Filipino car insurance applicants and more.

Basics of car insurance & add-ons in the Philippines

Compulsory Third Party Liability (CTPL) vs. Comprehensive Insurance

CTPL	Comprehensive
The law binds you to get CTPL insurance; it is also required for vehicle registration (a must to drive the car legally). As for coverage, it protects against third-party bodily injury or death resulting from an accident involving the insured vehicle. It doesn’t cover the insured vehicle’s damage or the policyholder’s medical bills.	It is optional insurance coverage, but it is highly recommended due to its broad scope of protection. Depending on the insurer, it offers protection against theft, damage, fire, and accidents. To fill coverage gaps, comprehensive insurance is often supplemented with add-ons that offer protection against specific risks.

Understanding the basics of ‘Add-ons’

What are car insurance ‘Add-ons’? They are the optional extra protection offered by an insurance provider (at an additional cost) to fill the coverage gaps of your standard policy. This ‘custom upgrade,’ along with comprehensive insurance, provides enhanced protection and peace of mind.

Key points about car insurance add-ons -

Unlike CTPL, it is not required by law, but it is highly recommended.
Policyholders can choose add-ons according to their requirements, driving patterns, budget, and other factors.
Adds up to the premium, but saves hundreds & thousands of pesos.
Common examples of add-ons include Acts of God, Loss of Use, and Roadside Assistance, among others.

Photo from Freepik

Top 10 car insurance add-ons for Filipino drivers

1. Acts of God or Acts of Nature Coverage

Natural calamities, such as earthquakes, volcanic eruptions, landslides, floods, and typhoons, are not new to Filipinos. Also, the damage they cause to motor vehicles is significant. The Acts of God add-on provides coverage against repair bills that would otherwise be your responsibility.

Photo from Freepik

2. Roadside Assistance

Stranded on the provincial highway due to a dead battery or flat tyre? No worries, with the Roadside assistance coverage, you get facilities like emergency towing, battery boost, tyre change, and even fuel delivery.

Photo from Freepik

3. Personal Accident Coverage

If you ever get involved in an accident, Personal Accident coverage will ensure that both the driver and passengers receive financial support for medical treatment. It even offers compensation for accidental death.

4. Third-Party Property Damage Coverage

As the name suggests, this add-on covers the cost of damage to third-party property caused by an accident involving the insured car.

We recommend this if you drive in high-traffic areas or are new to driving.

5. Loss of Use Coverage

When your car is being repaired due to an accident (covered by a claim), this coverage will help you continue your daily routine by taking care of taxi/Grab/car rental expenses.

For more details, you can check out our dedicated article on Loss of Use coverage here.

Photo from Freepik

6. Lost Wage Recovery

Accidents are unfortunate events that not only damage the vehicle but also disrupt your livelihood, especially in cases of serious injury or death. This particular add-on will help cover the lost income when you are unable to join the workforce due to an accident-related injury.

This add-on is recommended for sole breadwinners who drive daily for work through heavy traffic or accident-prone areas.

7. Personal Effect Coverage

This particular add-on offers protection against valuable items, such as mobile phones, laptops, and bags, that are damaged or lost due to an insured car accident or theft.

It is highly recommended for Filipinos who usually keep their personal & work-related belongings in the car.

8. Pet Injury Coverage

In case your pet gets injured during an accident while riding with you, this add-on will cover the veterinary expenses.

It is a highly recommended coverage for Filipinos who frequently travel with their pets.

9. Riots, Strikes, and Civil Commotion Insurance (RSCC)

If your vehicle is damaged in a riot, strike, protest, or civil disturbance, this add-on will cover the repair costs.

10. Legal Assistance Coverage

Sometimes, road accidents or collisions often lead to parties filing legal cases against each other. In such a situation, this coverage provides legal fees and also offers bail bond assistance. Thus, easing the stressful situation a bit.

Also Read: How your driving habits impact your insurance rates – What you need to know

Key advantages of getting car insurance add-ons

It is a fact that add-ons are a bit expensive and add to the overall insurance premium; however, the protection and peace of mind they offer are worth every peso. Here are the key benefits -

No worries during natural disasters like floods & typhoons - On average, 20 typhoons hit the Philippines each year, accompanied by earthquakes, volcanic eruptions, and floods. Thus, making Acts of God coverage essential, as without it, one severe flood could cost you hundreds of thousands of pesos in repairs.
Fast & hassle-free assistance when needed - Add-ons like legal support and roadside assistance offer immediate relief whenever required. So, instead of looking for a lawyer or towing service number, you just contact your insurer and all is taken care of. Thus, you save time and money.
Reduced financial burden - Surely, car insurance takes care of several expenses, but some unexpected events put pressure on your pocket. For instance, the towing fee or car rental fee when your ride is at the service centre after an accident. Here, add-ons like roadside assistance and Loss of Use offer support.

Photo from Shutterstock

Tips to choose the right car insurance add-on

Insurance providers offer a variety of add-ons to their clients. As these coverages increase the premium, it is essential to choose them wisely, i.e., select the ones that you genuinely require.

Here are a few tips to make your job easy -

Check the provider’s reputation - Before choosing an add-on, it is essential to verify the provider’s reputation, claim process timeline, and customer service. This is essential as not all insurers handle claims equally. You see, it is better to opt for a reliable insurer with a slightly higher premium than to struggle with a mediocre one and face denied claims.
Assess your driving habits - Notice your driving habits and choose an add-on accordingly. For instance, if you often drive long distances, roadside assistance is crucial. Similarly, if you take family trips with your pet, then pet injury coverage is recommended.
Consider your location & weather conditions - Car owners residing or driving in areas with heavy traffic should opt for Third-Party Property Damage coverage. Similarly, Acts of God coverage is recommended for drivers who often face flooding issues. Consider roadside assistance if you frequently take highway trips.

Also Read: Top car insurance worries Filipino drivers face - and how to fix them

Bottom line

Car insurance is a crucial part of a car owner’s journey. While some aspects are legally required, the rest are optional but highly recommended. The key is to choose wisely, make decisions based on your location, lifestyle, and risks. Doing so will ensure that you are never left stranded - both emotionally and financially.

In short, every car owner has CTPL insurance, but it’s with the right combination of comprehensive and add-on coverage that you get optimum protection and peace of mind. Add-ons like Acts of God, roadside assistance, loss of use, and lost wage recovery can genuinely support you during difficult times.

FAQs

Q1. Does the law require car insurance add-ons?
Ans. No, the law in the Philippines only requires car owners to obtain CTPL insurance; all other coverage options are optional.

Q2. What is the difference between CTPL and comprehensive insurance?
Ans. While CTPL insurance is mandatory, it covers only third-party bodily injuries or death. Comprehensive insurance is highly recommended and covers risks such as theft, fire, and vandalism, depending on the insurer.

Q3. How much do car insurance add-ons usually cost?
Ans. The cost of add-on coverage depends on several factors, including the insurer and the type of coverage. Usually, it adds up to PHP 500 to PHP 5000 to the premium.

Q4. Should I get coverage for Acts of God?
Ans. Acts of God coverage is highly recommended for Filipino drivers, especially with the frequent floods and typhoons that frequently knock on our doors.

Q5. Does roadside assistance cover nationwide towing?
Ans. The coverage scope of roadside assistance coverage depends on the insurance provider and your policy. Some towing coverage offers nationwide service, while others restrict it to a specific radius.

Q6. Can I buy add-on coverage mid-term?
Ans. Yes, most car insurance providers allow you to add coverage mid-term and at the time of renewal.

Q7. What is Loss of Use coverage?
Ans. Loss of Use coverage provides a daily allowance or reimbursement for taxi or Grab fees while your car is being repaired.

Q8. What documents are required to file a claim?
Ans. Some of the standard documents required to file an insurance claim include - OR/CR, insurance policy, driver’s license, police report, and photos of the damage and incident scene.

Q9. Can you claim both CTPL and an add-on for the same accident?
Ans. Yes, given that the claim falls under both CTPL and add-on coverage.

Q10. How long does the car insurance claim process take?
Ans. It depends on the insurance provider and takes from a few days to a few weeks.

Q11. Does Acts of God coverage include damage caused by volcanic eruptions?
Ans. Yes, Acts of God coverage typically includes natural calamities such as floods, earthquakes, volcanic eruptions, and typhoons.

Q12. If I add more drivers to my policy, will the premium increase?
Ans. It is a possibility, as added protection often increases the cost.

Q13. Does comprehensive insurance include personal accident coverage?
Ans. It depends on the insurance provider; while some might include it, others offer it as an add-on.

Q14. What shall I do if my car insurance claim gets denied?
Ans. Here’s what you can do: request a written explanation from your insurer and review your policy terms. If that doesn’t work, file an appeal with the IC.

Q15. What does third-party property damage cover?
Ans. Third-party property damage coverage offers protection against damage to someone else's property.

Also Read: From safety to insurance claims: Handling an animal collision with your car