What are Car Insurance Add-On Covers?
Under car insurance, an add-on cover is referred to as an additional coverage benefit offered by the insurer to the policyholder to strengthen the coverage of his/her car. It helps a car owner to enhance the financial security of a car over and above the standard policy coverage.
Vehicle owners can purchase car insurance add ons at an additional premium to enhance their policy coverage. However, it is important to note that add-ons are only available with own-damage or comprehensive car insurance policies.
Various Types of Car Insurance Add Ons
Here is the car insurance add ons list that you can choose from with your own damage or comprehensive four-wheeler policy:
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Zero Depreciation Cover
Zero Depreciation cover is an add-on cover that shares the burden of depreciation on the car's parts and enables a car owner to get a higher claim amount. It ensures that the cost of depreciation is not deducted while paying the claim amount at the time of claim settlement. Also known as nil depreciation or bumper-to-bumper car insurance, this add-on cover is mostly available for cars up to five years old. Moreover, some insurers may only permit up to two zero depreciation claims while some may allow unlimited claims.
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Engine Protection Cover
Engine Protection cover provides coverage for any loss or damages caused to the engine of the car due to issues, such as water ingression, oil spill, electrical or mechanical breakdown of the engine, etc. It also provides financial aid for the replacement of the car's engine or its parts. But just like the zero depreciation cover, the engine protection cover is also available only to cars that are not more than five years old.
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No Claim Bonus (NCB) Protection Cover
A No Claim Bonus Protection cover protects the NCB of a car owner despite raising a claim. It keeps your NCB in car insurance intact even if the car owner raises a claim in the previous policy year. Note that the NCB protection add-on cover applies only to the own-damage premium.
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Roadside Assistance Cover
A Roadside Assistance cover provides the car owner with any on-road assistance services in case the insured car breaks down in the middle of the road. Just a call to the insurance company and a mechanic is arranged to take a look at the vehicle and help out. Some of the services available under RSA add-on cover are changing a flat tyre, minor repairs, car towing, fuel delivery, the arrangement of replacement car keys, battery jumpstart, etc.
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Return to Invoice (RTI) Cover
Return to invoice in car insurance is another important add-on cover to opt for with your motor policy. Due to the depreciation sustained by the insured car over years, the car owner does not receive the invoice value of the car if the vehicle suffers from a total loss. Here is when Return to Invoice add-on cover comes to the rescue.
The Return to Invoice cover, also known as Invoice Protect add-on, enables a car owner to receive the original invoice value of a car as the claim amount in the event of a total loss, constructive total loss or theft of the insured car. However, the Return to Invoice add-on is available only for cars that are less than three or five years old, depending on the insurance company.
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Daily Allowance Cover
The Daily Allowance add-on covers the day-to-day travel expenses in case the insured car is at a garage for repairs. It compensates the car owner for any travel expenses incurred for hiring a cab or using public transport while the car is at the network garage. However, this add-on cover applies only if the insured car gets repaired at the authorised network garage of the motor insurance company.
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Passenger Cover
Unfortunately, a personal accident cover available under a regular car insurance policy does not cover the treatment expenses of the passengers in the insured car. This is where ‘Passenger Cover' comes into the picture.
The Passenger cover add-on provides coverage for any medical expenses incurred by the passengers of the insured car in case of an accident. It covers the cost of hospitalization expenses, treatment expenses as well as ambulance fees. Moreover, it also provides compensation in case the accident results in the disability or death of a passenger.
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Consumables Cover
The consumables cover in car insurance is an add-on that reimburses the expenses incurred towards consumable items in an insured car during repairs. These may include nuts & bolts, lubricants, grease, washers, engine oil, brake oil, screw, oil filter, bearing, etc. Remember that consumables in car insurance add-on coverage is not available for cars older than five years.
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Tyre Protect Cover
Car insurance companies do not pay for any damages or loss of the tyres if it is not arising out of an accident. The cost of repairing or replacing the tyres has to be borne by the car owner. This is where the ‘Tyre Protect' add on cover can come in handy.
The Tyre Protect cover reimburses any expenses incurred towards the repair or replacement of the tyres of the insured car. It ensures that the motor insurance company pays for tyre damages, such as puncture, in-tyre bulge, tyre cut, bursting of the tyre, etc.
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Key Replacement Cover
A standard car insurance policy does not pay for the replacement of car keys if lost or stolen due to theft, burglary or any other damage. But that's not the case with a ‘Key Replacement' cover.
A Key Replacement cover is an add-on cover that provides coverage for any expenses arising out of replacing the keys of the insured car. It also covers the cost of repairing the lock-set of the car in case the keys have been lost, stolen or damaged.
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Loss of Personal Belongings Cover
The Loss of Personal Belongings in car insurance add-on compensates for the loss of any personal items stolen from the insured car or with the car. It also pays for any damages caused to the personal belongings inside the car. It covers various kinds of personal items, including electronic equipment.
Car Insurance Add Ons: New vs Old Cars
Here's a table showing the recommended add ons for new & old cars:
| Car Insurance Add-ons |
Recommended for New Cars |
Recommended for Old Cars |
Reason |
| Zero Depreciation Cover |
Yes |
No |
Best for new cars to avoid depreciation deductions at the time of claims |
| Engine Protection Cover |
Yes |
Optional |
Protects new car engines from water damage, especially in monsoon-prone areas |
| Roadside Assistance (RSA) |
Yes |
Yes |
Ideal for both; but more important for older cars since they are prone to breakdowns |
| Return to Invoice (RTI) |
Yes |
No |
Covers the complete original invoice value for total loss or vehicle theft; ideal mostly for new vehicles |
| Consumables Cover |
Yes |
No |
Coverage for items like oil, nuts, bolts during repair/replacement; more beneficial for new cars |
| No Claim Bonus (NCB) Protect |
Yes |
Yes |
Retains NCB benefits even after a claim; useful for both new & old cars |
| Tyre Protection Cover |
Optional |
Not Recommended |
Valuable for new cars with expensive or low-profile (performance) tyres |
| Personal Accident Cover |
Mandatory |
Mandatory |
Mandatory for both; ensures driver/owner protection. |
| Key Replacement Cover |
Yes |
Optional |
More relevant for smart/keyless systems in new cars. |
For newer cars (up to 3 years old), consider opting for zero depreciation, engine protection, RTI, consumables, and key replacement add-on covers to ensure better financial protection in the event of damage or theft.
On the contrary, older cars (aged 5+ years), roadside assistance, NCB protect, and the mandatory PA cover are more suited. Zero depreciation or RTI add-ons are not valuable for older vehicles since their value depreciates considerably over time.
