5 Important Car Insurance Add-ons

A car insurance policy safeguards you from several risks, such as theft or accidents. However, there are still many things a standard policy may not cover. From depreciation costs, to consumables, to engine and tyre damages, are some common expenses that are not covered under a motor insurance. This is where an add-on is beneficial to extend the coverage of a basic policy. Read on to know the 5 most important car insurance add-ons you need.Read more

Which Car Insurance Add-ons Do You Need?

Add-ons enhance the protection offered by your car insurance. They can only be included with a comprehensive policy at an additional premium. Here is a list of the 5 most important car insurance add-ons one must consider:

1. Zero Depreciation

   A motor vehicle, including all its electrical and non-electrical accessories and items, depreciates each year. Each time your car insurance company settles an accidental claim, they deduct the depreciation cost on the repaired and replaced parts. This results in significant out-of-pocket expenses for the policyholder. However, if you add the zero depreciation cover, the insurer will not deduct any depreciation cost, and you will receive a better claim amount

2. Roadside Assistance (RSA)

   Emergencies can happen unexpectedly and leave you stranded in the middle of the road. Having the roadside assistance add-on is a beneficial choice as it provides 24x7 emergency assistance in case of a breakdown. It offers common services, such as towing, battery jump-starts, flat tyre changes, fuel delivery, etc. Using the RSA add-on does not hamper your no claim bonus, and you still get the accumulated discount, if any, while you renew your policy.

3. Engine Protection

   The engine protection add-on is suitable for those who live in flood-prone areas. It covers the damage caused to the car engine and its parts due to these calamities. If your car is insured with an engine protect add-on, you can raise a claim for the damages caused.

4. Consumables

   There are a few consumable parts used in car repairs, such as nuts, bolts, engine oil, grease to AC gas, pipes, ball bearings, coolant, and similar. The small yet essential parts are subject to repair costs and are generally not covered under any insurance plan. These parts are quite expensive, and without a consumables add-on, it can be quite expensive for the policyholder. If your car is insured with the consumables add-on, then the insurer is liable to pay for these costs incurred during the car repair.

5. Return to Invoice

   This add-on cover is best suitable for cases of theft or when the car damage is beyond repair (also known as total car loss/damage). With the help of this add-on, you can raise a claim to the insurance company and receive an amount equal to the invoice value of the car.
   The on-road price consists of the ex-showroom price, registration costs, and road tax. Without the return to invoice add-on cover, policyholders are only eligible to receive the IDV or the depreciated value of their vehicle.

Why Do You Need Car Insurance Add-ons?

A car insurance plan in India ensures financial aid to the policyholder in case of accidents. An adequate insurance plan helps ensure you don't suffer from financial losses due to uncertain accidents causing damage to the car.

Adding a rider during policy purchase can offer additional coverage and ease the financial stress caused by uncertain accidents. This is why opting for riders is crucial. You should opt for at least one rider option along with your basic car insurance plan, like NCB protection add-on, tyre protector, and more.

Wrapping it Up

Car insurance add-ons provide alluring benefits to the policyholder. However, you need to determine which add-on will benefit you the most. You can pick the right add-on based on factors like car age, geographical location, tyre quality, and similar. Before buying car insurance in India, you must carry out thorough research online.