Once you have purchased the car of your dreams, the next smart step is to get it insured with a reliable car insurance plan. But what if even a comprehensive car insurance policy is not adequate to cover some of your specific needs, like Zero Depreciation or Engine Protect? Enter add ons: Additional covers that you can add to your existing policy and enhance the coverage with a minimal extra premium.
But what are the types of add-on coverages available, and what type of coverage does your car need? This article walks you through some of the most popular add on covers in car insurance that can help you make an informed decision while picking add-ons.
An add-on cover under car insurance is like an additional benefit that you can add to your existing policy and enhance the coverage both qualitatively and quantitatively. These add-on covers, known as riders, are worth exploring to enhance the coverage for specific needs or risks that you anticipate with your vehicle.
Remember that to enjoy the benefits of add ons, you must own a standalone own damage cover or comprehensive car insurance. Third party car insurance can’t be the base policy for add ons.
Remember that in India, purchasing add ons in motor insurance is possible only while buying the insurance policy or while renewing the policy. Here are a few windows where you can consider purchasing a car insurance add-on:
You can consider purchasing a car insurance add-on, either at the time of purchasing the policy for the first time or at the time of renewing your policy.Read this blog for a few things to remember before renewing your policy.
Purchasing an add-on cover under car insurance in the initial 3 to 5 years of purchasing the car can help you find a wide range of add-on covers that are typically available only for new vehicles, such as a zero depreciation cover or return to invoice cover.
An ad on the cover, such as engine protection, cover, or roadside assistance coverage, is worth exploring before the monsoon season arrives. If you live in an area that is prone to flood or waterlogging, such add-on covers can protect you from financial burden.
There are several add-on options under car insurance. Let’s take a look at some of the most popular ones:
A car starts losing its value as soon as it gets sold, known as depreciation. Zero Depreciation Cover is an additional feature that protects your vehicle against its depreciating value. In the absence of zero depreciation cover, the insurer deducts a depreciation amount while settling your claim.
Here’s how it works: If your vehicle is involved in an accident, your insurer bears the complete cost of repairs, including depreciation. Additionally, with zero depreciation cover, the Insurer Declared Value doesn’t suffer since your vehicle is protected against its depreciating value.
The heart of your vehicle is its engine, but typically, most insurance companies do not offer coverage for the engine. In such cases, an engine protection add-on becomes a smart choice.
If you think there's a high risk of such incidents, consider including this car insurance add-on. This add-on can be particularly beneficial for individuals living in flood-prone areas or those who frequently drive on rough terrain. However, remember that this add-on typically does not offer coverage in the event of engine damage resulting from accidents.
Insurance companies offer a claim bonus to policyholders who do not file any claims during a policy year. Typically, a 10% discount on the own damage component at the time of car insurance renewal is offered. But what happens to your no-claim bonus if you end up claiming minor damage? You end up losing your no-claim bonus. The best part? The discount can accumulate up to 50% if claims are not made for five consecutive years.
Enter no claim bonus protection add-on: A protection for your NCB after a minor claim. Once you have purchased this add-on, you can easily preserve your bonus, even after filing a small claim.
Do you want to live without fearing your car being totalled or stolen? As a car owner, it seems impossible even without comprehensive coverage. The reason is that the insured sum allotted to the car by the insurer is the maximum amount you can get, even if your car gets totally damaged or stolen. Moreover, considering the car's depreciation, the insured sum decreases over time.
But with a return to invoice cover, you can be stress-free, as this add-on cover in car insurance stands for exactly what its name says. Here, in the event of a total loss or theft, you will receive compensation equal to the car's invoice value.
Imagine going for a drive with your family and your vehicle breaks down in the middle of the road. Even if your insurance policy covers the cost of repairs, how do you find a repair shop instantly? Sounds like a helpless situation, right? This is where roadside assistance add-on cover comes into the picture.
Under this cover, your insurer provides round-the-clock emergency services like towing, tyre change, fueling, etc, so you are not left stranded in such situations.
Typically, car insurance policies do not offer coverage for expenses incurred on repairing or servicing consumables, such as brakes, nuts and bolts, engine oil, fluids, or coolants. While this might sound like a big deal initially, it can increase the out-of-pocket expenses every time you go for a repair or servicing.
However, if you have opted for consumable covers, your insurer also offers coverage for these consumables.
To sum up, motor insurance add ons are like extra layers of protection for your vehicle. They are worth considering if you want to maximise your coverage by adding components not covered in your primary car insurance plan. However, you should also assess your car and some factors before buying these add-ons, as in some cases, the added value might not justify the cost.
Additionally, ensure that you purchase your insurance and any add-ons from a trustworthy company, such as Generali Central.
