Car Insurance

3 Policy Add-Ons Car Insurers Want You to Ignore

Jeff Cuellar



Who can blame you for always saying NO to every add-on that comes your way? Most of the time, these marked-up “extras” are just things you can either do without or purchase cheaper separately. And in some cases, add-ons are obvious rip-offs, such as the overpriced “extras” that certain Apple re-sellers “bundle” with phones or tablets (you know who I’m talking about!).

But not every add-on is an attempt at cheating you out of your hard-earned cash. In fact, when it comes to car insurance, certain extras can help you keep more money in your pocket when disaster strikes!

Here are 3 car insurance add-ons that you can’t afford to ignore:


No Claim Discount (NCD) Protector

With all the kiasu drivers on the road, everyday driving in Singapore can make the chariot race in Ben Hur look passive by comparison – especially if you drive daily along congested highways such as the Pan-Island Expressway (PIE) or Central Expressway (CTE).

If you manage to “survive” for 5 years without an accident, you get a shiny medal (ah, actually you don’t) and a nice 50% discount on your car insurance policy called the No Claim Discount (NCD).

But what happens if your luck runs out and you’re involved in an accident that’s your fault? You can kiss that 50% NCD good bye because it’ll get knocked down to 20%. And if you get in another accident that policy year, your NCD will drop to 0%.

Even the best drivers makes mistakes, but if you get the NCD Protector for your car insurance policy, your NCD won’t drop if you get into an accident – you’ll keep your 50% NCD. And if you get in another accident, your NCD will only drop to 20% instead of 0%.


Flood Damage


I’m sure this guy won’t have a problem getting another car if it’s a “total” loss, but will you? Yeah, ask about that flood damage add-on.


In some countries, flood damage is considered an unnecessary car insurance add-on – Singapore is NOT one of them. In fact, flooding in Singapore is becoming an increasing occurrence (so much for “once in 50 years”), causing millions of dollars worth of damage to both property and vehicles.

But if you think that your car insurance policy covers flooding just because it’s “comprehensive,” you’re setting yourself up for financial disaster. Because if your car suffers flood damage or worse… becomes a total loss, your insurer won’t pick up the tab – unless you have a flood damage policy extension.

So if you’re driving a Duck Boat to work, great! You don’t need this add-on. But if your vehicle isn’t made for amphibious travel, consider adding flood damage to your policy.

For more information on flood insurance, read our article “Don’t Let Flooding Wash Away Your Savings!


Windscreen Damage


You thought I was kidding when I said storms could damage your windscreen?


Aside from getting caught in a flood or taking a hit to your NCD because you ah, “hit” the car in front of you, nothing ruins your day worse than getting your windscreen cracked or shattered. And windscreen damage isn’t as uncommon as you might think.

You could be driving along PIE singing along to “Blurred Lines” when a piece of debris falls out of the lorry in front of you – taking an unlucky bounce right *SMACK* into your windscreen. Or you could be sitting in your car waiting for a storm to pass when a tree branch inconveniently falls… right onto your windscreen.

You’re right if you think that your car insurance policy will cover the damage, but you’ll be the one paying – with your NCD discount and any policy excess (depending on the cost of replacement).

Of course, you can pay for the damage in cash, which can be hundreds of dollars or more, depending on your vehicle make and model. Or you can just let the insurer pay for it by getting the windscreen damage add-on.

Important Note: If you make a claim with this add-on, just keep in mind that you’ll need to renew it once again because it cancels after every use.


One More Thing…


Saving money on your car insurance policy is almost this easy…


While these car insurance add-ons can save you hundreds or thousands of dollars when accidents happen, don’t forget that comparing the rates offered by insurers can help you save even more money! Visit MoneySmart today to see just how much you can save on your policy!


What other car insurance add-ons would you recommend? Share your thoughts with us on Facebook!

Image Credits:
8mm & Other StuffNigel Smuckatelli, joyosity, Jeannie Kays

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Jeff Cuellar

I'm known by many titles: copywriter, published author, literary connoisseur, ex- U.S. Army intelligence analyst, and Champion of Capua.