Know What Your Car Insurance Coverage Extensions Are—And See If You Need Them

When shopping for comprehensive car insurance, you may see that there are certain types of coverage that might be missing from your policy. This will probably make you wonder, thinking that there must be a mistake somewhere. Could you have been scammed by your insurer? Are you never getting your money’s worth?

Know What Your Car Insurance Coverage Extensions Are—And See If You Need Them

However, you might want to hold your horses (or horsepower, in this case) before you storm your insurance company’s headquarters. What you’re looking for may actually be a coverage extension that you didn’t really avail.

Why do coverage extensions exist?

Coverage extensions are additional covers that will provide for financial losses that are not included in the original policy. Circumstances, such as acts of nature and social and political upheaval that are available outside the basic comprehensive car insurance packages are not covered by insurance companies. However, this doesn’t mean that there is no coverage available in the event of these special circumstances. Coverage extensions exist to protect people from wider conditions that may incur them financial losses. For reference, basic comprehensive car insurance includes the following coverages: loss/damage cover, excess bodily injury, excess liability injury, property damage, no-fault indemnity cover, and auto-passenger accident. Others not stipulated in the basic insurance coverage may be under coverage extensions.

(Check out: What Is CTPL And What Are The Most Common Misconceptions About It?)

What are the most common coverage extensions available?

Before 2009, Acts of Nature coverage comes free as part of the basic comprehensive insurance package offered to car owners. However, typhoon Ondoy ravaged a huge part of Metro Manila, even high-profile areas like Magallanes and Buendia have been affected by the typhoon. Still, the intensity of damage left by Ondoy as well as the number of claimants who had their vehicles destroyed by the typhoon forced insurers to make Acts of Nature an extended coverage. Since then, people have to appreciate the importance of the said coverage extension.

Aside from Acts of Nature, fortunately, there are extensions available that will allow you to have better protection for your vehicle. Among the most common car insurance coverage extensions are the following:

1. Acts of Nature

Also known to others as Acts of God, Acts of Nature coverage provides protection and indemnity for the vehicle and accessories from natural calamities such as flood, typhoons, volcanic eruption, earthquake, and other natural calamities.

2. Strikes, Riots, and Civil Commotion

Aside from coverage extension against natural calamities, policyholders can avail of protection against man-made disasters. Strikes, Riots, and Civil Commotion extension will protect a person’s vehicle from damages stemming from civil disorders such as riots. You can avail of this coverage extension by simply asking your insurance provider.

3. Additional Accessories and Modification

When you have your car insured, only the parts and accessories declared during the purchase of the policy are the ones insured; anything else added after that will not be indemnified by the insurance company. To have your newer accessories such as rims, upholstery, and other parts insured, you need to get additional accessories and modification cover for your car.

(Check out: Shifting Gears! 3 Reasons why you need to change your car insurance)

Additional coverages exist to make sure that our vehicles are protected from a wide range of circumstances that may leave us financially debilitated. While these are good to protect our cars from losses that might occur, keep in mind to just get the extensions you will only need and don’t forget to compare premiums.