Purchasing insurance for your brand-new car is a mandatory requirement per Indian motor laws. However, many don’t know they can also enhance their insurance coverage while purchasing a new car insurance policy, specifically comprehensive or own damage.
With these additional covers, you can increase the coverage for damages that are not covered under your standard motor insurance policy. Some not-to-be-missed car insurance add-ons for brand new cars are:
A car starts depreciating as soon as you take it out of the showroom. This depreciated value of the car and its parts is not compensated when you raise an accidental claim under your four-wheeler insurance policy. So, you end up paying the cost of depreciation sustained by your car from your pocket.
To overcome this, insurance providers offer a zero dep add-on (bumper-to-bumper/nil dep cover) that covers the depreciation of your brand-new car. This add-on is very useful for a new car. It can be easily included in your standard policy at a very nominal premium.
Consumables in cars include engine oil, brake oil, lubricants, nuts, screws, bolts and similar items that wear and tear regularly, thus needing replacement. Usually, the cost of repairing or replacing these items is not covered under a comprehensive insurance policy.
This is where a Consumables cover comes to the rescue. This add-on compensates for repairing or replacing consumables damaged at the time of claim. This cover is essential for brand new cars as it helps your vehicle run smoothly and covers expensive repairs of these parts.
The engine is the heart of your car that keeps it running smoothly. Any damage to the engine or its parts is not covered by a standard motor insurance policy. Thus, being an expensive part, any damage to the engine of a brand-new car can burn a hole in your pocket.
An Engine Protect add-on is very useful to cover damage to your car’s engine and its parts caused due to water ingression, leakage of lubricant oil, hydrostatic lock, damages to the gearbox, crankshaft, pistons, connecting rods, etc.
So, getting this add-on while purchasing a brand new car insurance policy becomes of utmost importance as it can help you save up on the most expensive part of your car: its engine.
Imagine you are going on a road trip in your brand new car, and it broke down in the middle of the road. What will you do now? During such times, finding a mechanic could be challenging, super expensive and leave you in a state of panic. However, with a Roadside Assistance add-on included in your car policy, you can overcome such situations without much hassle.
A Roadside Assistance cover will protect your vehicle from sudden damages on the road. This add-on offers assistance for minor repairs, battery breakdowns, flat tyres, towing, provision for spare keys and fuel provision.
The insurer sends a mechanic to repair the damage caused to your car. Moreover, using a Roadside Assistance add-on does not count as a claim; thus, your earned No Claim Bonus remains intact.
The keys of brand-new cars, especially premium cars, are pretty expensive, and any damage or loss of these can be burdensome for your pocket. Moreover, accidental damage or loss of your car keys is not covered by the standard comprehensive car insurance policy.
By purchasing a Key and Lock Protect cover with your car policy, you can get coverage in case the car keys are lost or stolen or even if the car's lockset is damaged accidentally. Under this cover, the insurer compensates for the cost of repairing or replacing car keys damaged or stolen in an unforeseen event like burglary, accident, etc.
It also covers the repair or replacement of the damaged key lockset.
The Return to Invoice or RTI cover is a crucial add-on for owners of brand new cars. This add-on ensures that in case of total loss or losses beyond repair, you get the entire invoice value of your vehicle, irrespective of the selected IDV.
When the car is deemed a total loss, the insurer pays the Insured Declared Value of the vehicle, which is the market value of the vehicle minus the depreciation. However, an RTI add-on bridges this gap by covering the difference between the IDV and the actual invoice value of the car.
Moreover, any registration charges and road tax are also reimbursed with the invoice value. Thus, you can recover the full amount you paid for the car, getting financial protection that goes beyond the standard coverage.
An RTI cover provides peace of mind to new car owners, assuring them that their investment is safeguarded and they can replace their lost or damaged car with a brand new one without facing a significant financial setback.
In the fast-paced world of Indian roads, having comprehensive insurance coverage for your brand-new car is crucial. By carefully considering and opting for these essential add-ons, you can ensure your prized possession is shielded from various risks and uncertainties. Remember, investing in the right car insurance add-ons not only protects your car but also provides you with the confidence to enjoy your new ride to the fullest.
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#Rs 2094/- per annum is the price for third-party motor insurance for private cars (non-commercial) of not more than 1000cc
*Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB. Actual time for transaction may vary subject to additional data requirements and operational processes.