6 Car Insurance Add-Ons to Boost Your Vehicle Protection – and Keep You Safe

What are Car Insurance Add-ons?

A comprehensive car insurance plan typically covers damages to a car that results from accidents and fire, as well as theft itself.

However, there are a number of events that your insurance policy will not cover.

For example, if your windshield cracks while you are driving (no accident occurs), your car insurance policy will not cover repairs or replacement; unless you have purchased the add-on coverage.

Other common incidents/events that require the purchase of add-ons include:

• Special perils (e.g. flood, landslide, typhoon, etc.)
• Strike, riots and civil commotion
• Theft of or damage (due to accident) to your car accessories
• Legal liabilities to a passenger
• Legal liabilities of a passenger

| Check out our piece: Do You Really Need These 6 Car Insurance Add-Ons? |

Apart from these relatively well-known car insurance add-ons; newer, more inventive coverage has emerged after the liberalisation of motor insurance premiums more than a year ago.

Since insurance companies are now free to set their own prices for new add-ons, we are seeing better, more competitive and useful coverage, for a range of needs.

Here’s a list of new and more innovative motor insurance add-ons, some of which have been offered before the detariffication, but are nonetheless worth the mention:

1. AXA FlexiDrive from AXA Motor Insurance

AXA FlexiDrive is the first telematics motor insurance in Malaysia designed to reward safe drivers with a safe driving discount on top of providing enhanced road safety and vehicle security. By tracking and scoring your driving behaviour, you can earn a discount of up to 20% on your premiums after NCD after completing the policy period of 12 months.

Safe driving discounts are based on speed, mileage and harsh driving; it will be recorded via the telematics device and you’ll be able to review your driving results via the AXA FlexiDrive mobile app.

The telematics function also allows for enhanced vehicle security; for a monthly fee of RM19.90, the AXA FlexiDrive Smart Track Security package can activated detailed location and trip geo-coordinates to help you locate your car in unfortunate car theft incidents.

Should you get it?

If being a safe driver is a point of pride to you, then AXA FlexiDrive will reward you accordingly and give you the savings you deserve. This add-on also incurs zero additional premium; installation of the telematics device is also free-of-charge (barring the requirement of a non-standard installation) and there is a refundable security deposit for the device itself. There is very little cost involved to sign up with AXA FlexiDrive especially for those who are price-conscious.

2. Smart Key Shield from MSIG Motor Add-On

If you own a car with a smart key fob, you might want to brace yourself for the cost to replace your key if damaged.

Depending on the car make and model, it’s not unheard of for an original replacement to cost up to RM1,000, with programming charges, etc.

The premium cost for this non-tariffed add-on is just 12% of the sum insured for your smart key and covers the cost to repair, replace or reprogram the key if it is stolen, lost or accidently damaged.

Should you get it?

If there is no warranty or cover for your smart key by the car’s manufacturer (or if you don’t have a spare), and can’t afford the full cost of replacement, then do consider this add-on.

3. Waiver of Betterment

If your car is aged five years or older and it gets involved in an accident, you may be charged a ‘betterment’ cost when it is repaired.

A betterment cost is imposed when older car parts are replaced with new, original ones that leave the car in a better condition than it was before the accident.

This non-tariffed add-on covers the betterment rate, typically 20% to 25% of repair costs, and depends on the car’s condition of manufacturing (i.e. locally assembled, reconditioned, etc.).

The annual premium ranges from RM100 to RM400, depending on the car’s age and sum insured.

Should you get it?

If you are driving an older car, betterment costs can be rather heavy, even more so if it is a foreign car where replacement parts are not easily available or are generally more costly.

Thus, if you can’t afford to cover it yourself, do consider buying the add-on.

4. NCD Relief from Tokio Marine

This is an interesting add-on that basically pays you the amount of your current NCD, if your claim affects and causes it to revert to 0% at your next renewal.

For instance, if you have a NCD of 55%, you will be compensated the discount against your basic premium, in addition to your claim.

Thus, if you’ve paid a basic premium of RM1,000 and have a current NCD of 55%; your pay-out will be RM550 (or 55% x RM1,000).

Should you get it?

If you have a high NCD and would like to get compensated for making a claim that would cost you your discount, you might want to consider buying this add-on.

You can use the pay-out to offset your premium upon renewal and save more.

Now you know all about the bigger and better add-ons that can protect you as much as you need!

5. Passenger Personal Accident plan (Tune Protect Ride Easy) from Tune Protect Motor Insurance

This add-on provides personal accident coverage for the passengers and driver of the insured vehicle. Coverage includes accidental death, medical and loss of appendages benefit (e.g. loss of hand or foot due to the accident). It also provides a bereavement allowance and hospital income.

The premium for this add-on ranges from RM75 to RM113 (or more with additional passengers) depending on the plan.

Should you get it?

If you carry passengers often and they do not have any form of medical or personal accident insurance, you might want to consider buying this coverage for them and yourself.

This add-on may be especially necessary if you constantly ferry family members and friends to and from accident-prone areas, during rush hour and/or long-distance.

6. Spray Paint Coverage from Tune Protect Motor Insurance

In the course of an accident, your precious paint job might get damaged! What’s even worse news? Repainting is not always covered by a standard comprehensive policy. With this add-on, you may claim for repainting.

It covers spray painting for your whole car with coverage from RM1,000 up to RM4,000, depending on the plan chosen.

Should you get it?

If your vehicle is new or with expensive metallic exteriors or if you have recently spent money to refresh the paint job, do consider protecting it by purchasing the add-on cover.

However, if your car is slightly older or if you aren’t fussy about its exterior appearance, then perhaps you can do without this add-on.

Do note though that certain damage to exterior paints may not just be superficial and could cause further deterioration such as rusting, etc.

But if this is the case, your car insurance may cover it after all.

Now you know all about the bigger and better add-ons that can protect you as much as you need!