We all live in large sprawling cities today with negligible public transport. In such a situation, it is very difficult to manage daily commutes without a car. However, buying a car is no longer a costly affair. Rising salaries, quick and efficient availability of finance and lucrative discounts have made car purchase simpler than ever.
Sadly, it is the cost of maintaining a car that is a lasting expense and is starting to become the biggest reason of worry for car-owners. A middle class family is loaded with EMI payments, fuel expenses and maintenance costs every month. To add to this, if the car meets with any kind of accident, the cost of repair empties the pocket and disturbs the monthly cash flows severely.
An extensive cover with value-added features, therefore, is often recommended by experts. Car insurance cover has become very extensive these days, offering a wide range of supplementary covers/add-ons.These add-ons are options that improve the basic coverage offered by a policy.
Here are some of the add-on options that will make your auto insurance policy powerful and comprehensive:
Zero Depreciation: Zero depreciation is one of the most popular and widely sold add on covers by auto insurance companies. Unlike the add-ons which are the choice of only a limited set of high end car owners, zero deprecation is quite popular across all segments. A zero depreciation add on policy makes sure that one receives a full claim on the value of parts that are replaced after an accident.
Generally insurance companies provide zero depreciation add-on only for the first three years from the date of purchase of the vehicle. The older the vehicle gets, the steeper can be the premium for zero depreciation add on policy. Receiving full claim without any depreciation of bumpers and other such parts that are fully substituted after any accident offers a win-win situation to both the consumer as well as the insurance company.
Quick Assistance of Road: This add-on gives you access to basic services in the event of an emergency while driving through a remote location or one without any assistance or service centers.
From having a flat tire or running out of fuel to battery related technical issues and even a severe accident in a remote location are all applicable for a cover under this policy. Users opting for such add-on policies can get fuel assistance, taxi and accommodation benefits when stranded in a remote destination.
Engine and Electronic Circuit Cover: Going by the name of the cover, it offers protection to the engine and electronic circuit especially in case of flooding. Hydro static lock or constantly trying to run a moist engine can cause the engine to fail. Such damage is not a part of normal motor insurance policy.
A dedicated electronic and engine cover add-on is a wise way to ignore massive cost repairs, especially when the electronic circuits are damaged. These cost a huge sum of money for replacement or repair. Since water logging during the monsoon season is common sight in all Indian cities and towns. Opting for an engine and electronic circuit insurance protection add-on is a necessity for the normal car owner.
Return to Invoice: It offers user the choice of availing the full value of the vehicle in case the car gets totally damaged in an accident or otherwise. The add-on is quite advantageous as the user gets full reimbursement without the 5% depreciation. There is a downside to it too, the return to invoice add-on is usually applicable only within first year of buying the vehicle.
No-Claim Bonus Protection (NCB): As the name suggests, the add on acts like a reward for those who don't claim their insurance in the entire policy year. Generally, vast number of people buy car insurance and renew it each year without actually filing for any claims.
The no claim bonus rewards them by offering a discount of 50%. In the absence of a no claim bonus add-on, a single claim can bring down the discount to zero but NCB add-on enables discounted protection even after availing a past claim.
Personal Accident Cover: This add-on covers both owner as well as paid driver. In case of the accident of an owner driver, 100% claim is awarded if there is death or irreparable damage to limbs. The downside is that the personal accident cover doesn't hold true if the vehicle is owned by a company and also if the owner does not have a valid driving license. The scenario where multiple vehicles are owned by a single person, personal accident cover add-on is provided only for one vehicle.
Loss of Personal Belongings: Loss of personal belongings add-on lets users report claim due to theft or apparent loss of personal belongings including laptop or electronic equipment from a locked vehicle. Several insurance companies offer a wide range of personal belonging loss claim which can go as high as Rs 50,000.
Key Replacement: A lot of insurance companies reimburse you for the cost of substituting the ignition key up to a certain limit. But, the amount reimbursed mostly is quite less than the actual cost of the replaced key.
Daily Cash Allowance: This add-on cover, which pays for the owner’s transportation costs, is valid only if your vehicle stays in a garage for more than 3-4 days. Generally, most vehicle repairs hardly take these many days and therefore, this add-on rarely comes to use.
Strengthening your car insurance policy online is convenient. An add-on coverage can sufficiently improve the value of your car insurance plan only if you choose them as per your your requirement. So choose wisely!