You surely understand the importance of car insurance as a car owner. According to the Motor Vehicle Act, third-party car insurance is a requirement for all drivers, yet it is never enough. A third-party car insurance policy shields you from the monetary and legal liabilities linked to a third party. Damage to your own vehicle is not covered by it. It also does not offer medical coverage in the event that you are hurt in an accident, therefore it is preferable to purchase a comprehensive auto insurance policy. To cover all potential risks and losses associated with your car, even comprehensive car insurance is not a one-stop shop. Even the comprehensive car insurance plans come with an exclusion list.
To widen your car insurance coverage, you can purchase add-on covers, also known as riders, based on your driving style and frequency of use. For a small additional fee, you can add several add-ons to your car insurance policies to make them more individualised. Given below is a list of some of the most sought-after add-on covers:
- Roadside assistance cover: If your car breaks down unexpectedly, especially in the middle of the road, the car insurance company will offer you prompt assistance under the roadside assistance add-on cover. This cover offers services like on-the-spot repair, flat tyre, spare key recovery, jumpstart battery, fuel support, car towing, etc. With the roadside assistance cover there will always be help whenever you face a mid-road mishap.
- Zero depreciation cover: Depreciation is the decrease in value of a car brought on by normal wear and tear over time. Every time you file a claim with your comprehensive car insurance, a specific percentage is subtracted as depreciation charges from the insured reimbursement amount. Depreciation charges will not be subtracted from the reimbursement bill by the insurance if there is a depreciation cover.
- Car engine protection cover: The expense of engine repairs other than those suffered as a result of an accident is covered under the engine protect cover, commonly known as the machinery breakdown policy. The benefit of purchasing this car insurance add-on is that it covers expensive engine repairs. Also, it is useful for locals who live in flooded areas. Engine damage is a prevalent problem in regions with heavy rains or turbulent monsoons. It should be noted that this additional insurance does not cover losses caused by the carelessness of the owner or regular wear and tear.
- NCB protection cover: You receive a No Claim Bonus from the insurance company if you don’t file any claims under your car insurance policy (NCB). At the time of renewal, the NCB is typically given as a discount on the premium cost for the next year. The reward may occasionally be awarded in addition to the insured amount. This premium discount may be up to 50%. However, every time you raise a claim, you forfeit your NCB. You can buy the NCB protection add-on with your car insurance coverage so that you can file a claim and have it resolved without losing your accrued NCB.
- Return to invoice cover: To protect yourself against vehicle theft, add this coverage to your comprehensive car insurance policy. A policyholder who is covered by this add-on plan can be qualified to receive the vehicle’s original value, which includes registration costs and road tax. Without this add-on, you would only receive the vehicle’s insured declared value (IDV), which represents the vehicle’s current market value, which is typically a depreciated market value. One benefit of adding this coverage is that the insurer will factor in the purchase price when calculating the claim pay out.
- Consumables cover: Consumable costs are excluded from coverage under a general comprehensive car insurance policy. You cannot, however, function without consumables. You will occasionally need to spend money on consumables like screen washers, engine oil, lubricant oil, AC refrigerants, ball bearings, nuts, and bolts for correct maintenance and smooth operation of the car. You would realise the cumulative annual expenditure on these consumables is pretty substantial if you were to calculate and take into account the total cost. By adding a small additional premium for a consumables cover, you can maintain your protection against these ongoing costs.
- Key replacement cover: You will have to pay money out of your pocket if your car keys are lost or stolen. The cost of changing a key can increase if it is a technologically sophisticated one. Two, you could not be aware of where to obtain a key made over or replaced. If you recently moved to a new location, this may be quite a problem. You won’t have to deal with any hassles if you use a key replacement cover to replace your lost or stolen car keys.
- Tyre-protect cover: The cost of any such loss or damage to tyres resulting from a cause other than an accident is often not covered by a comprehensive car insurance policy. If the tyre needs to be repaired or replaced, you will be responsible for paying the associated costs, which might be substantial. With a tyre protection plan, the auto insurance company will pay for any costs associated with tyre repair or replacement.
- Passenger accident cover: In the event of an accident or other unforeseen incident, comprehensive car insurance will pay for your medical care. What if your loved ones also suffer injuries? You may relax knowing that the other people in your car will be covered for medical expenses if there is a passenger accident. It pays for costs such as medical care, hospitalisation, ambulance coverage, etc.
You should therefore increase the coverage of your car insurance policy based on your usage and other factors, such as how frequently you use your car, whether your family frequently travels with you, whether you live in a region that is prone to flooding, whether the monsoon season is severe where you live, and so on. Customise your car insurance by purchasing add-ons and benefit from all-around protection.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales