Car Insurance | 5 Best Optional Benefits
5 Best Add-ons to Make the Most of Your Car Insurance
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Buying a car is one of the most important financial decisions you’ll have to make. Thus, it’s equally important to protect your vehicle with good car insurance to give you peace of mind, besides alleviating your financial worries.
Depending on what coverage you opt for, your insurer can help pay for vehicle damage, injuries, as well as legal costs after an accident or other covered incidents. Typically, there are different auto insurance cover types you can choose from. At DirectAsia, there are 3 main types of coverage – Comprehensive, Third-Party Fire & Theft (TPFT) and Third Party Only (TPO). Based on what you need, you can also extend the level of coverage on your policy with Optional Benefits for added protection.
But wait – why do I need more coverage? You might ask. Don’t the standard car insurance cover types already cover what is necessary? No – it doesn’t always.
This is because insurers want to give you the option to tailor your car insurance plan according to your needs and affordability. Still, add-ons cost money – and when you are trying to save, you may think it is wise to skip them altogether!
But although it may be cheaper at first (without add-ons), it may cost you more in the long run if you encounter unexpected incidents.
Here’s a list of common car insurance add-ons and the important things to note, to help you decide if you should opt in or not:
Which Optional Benefits Are Worth Considering?
1. Personal Accident
This add-on cover is vital as it protects you and other named drivers on your car insurance policy if there are serious injuries sustained as a result of an accident. As the policy holder, you can get up to $500,000 in compensation in case of death or permanent loss of arms or legs, depending on the sum insured.
Good to know: Bear in mind that no claim can be made if the driver driving the vehicle at the time of the accident, does not hold a valid license. Plus, this add-on is only for the vehicle covered within your policy and does not apply to your other vehicles.
2. Medical Expenses
In case of an accident, you or the passenger(s) within your car may get hurt, which could require instant medical attention. We will pay you, your authorised driver and passenger(s) for reasonable medical expenses up to $3,000 per person arising out of an accident while in your vehicle. Medical expenses in Singapore can be costly, so it’s definitely good to consider getting this optional benefit as part of your car insurance policy.
Good to know: Your No Claim Discount (NCD) will not be affected for claims made solely against this benefit.
3. 24-Hour Breakdown Assistance
This add-on cover comes in handy if you ever get stranded in the middle of the expressway due to tyre problems, or a mechanical breakdown. Getting help at such times may be quite difficult, especially if you are driving through a remote location.
Good to know: With this add-on, you could also ask your car insurance company for help, if you require a flat tyre to be replaced.
4. NCD Protector Plus
The No Claims Discount (NCD) is the discount you get from your car insurance company for not making any claims during the previous policy year.
The NCD Protector Plus add-on protects your due discount and allows you to enjoy NCD benefits even if you have made one claim during the insurance policy term. In other words, it helps you save a significant amount of money when paying for car insurance premiums in the subsequent years.
Good to know: DirectAsia is the only insurer that offers NCD60 in Singapore. You’ll automatically be eligible for this discount if you’ve held NCD50 for at least the last 5 consecutive years.
5. My Accessories
If you have enhanced your car with high-end speakers, custom rims and navigation systems, don’t count on your regular car insurance plan protecting it in case of theft or accidental damage. This is because most car insurers only cover standard approved installations, as listed by the car manufacturer.
Here, you can opt-in for My Accessories coverage which covers the cost of replacing or repairing damaged solar film, suspension, stabiliser system and air intake/exhaust system, or in-vehicle entertainment systems, car camera, body kit, rims and tyres that get stolen from your car.
Good to know: If you haven’t installed any new, fancy gadgets in your car, then it doesn’t apply and you may skip it.
Add Protection with the Right Add-Ons
Your vehicle is probably one of your prized possessions and no doubt the safety of you and your passengers is priceless. So, it pays to enhance your car insurance coverage with various add-ons based on your needs and budget. Choose the right add-ons, according to what may prove to be beneficial, whether in anticipation of potential crisis or not.
Also, remember that these add-ons are not transferable to another vehicle or unnamed driver and cannot be bought as a standalone cover. Plus, besides the 5 common ones mentioned, DirectAsia offers other optional benefits such as New for Old Replacement Car if your car gets stolen, Compensation for Loss of Use while your car is being repaired and Repatriation Costs for towing your car back to Singapore if it breaks down in West Malaysia and Southern Thailand.
So, now that you know about these common car insurance optional benefits, how likely are you to give your ride the extra coverage it deserves? Let us know in the comments section below!