5 Important Car Insurance Add-ons You Must Know About

A Comprehensive Car Insurance Policy provides coverage when you endure loss from own vehicle damage and third-party liability. The policyholder can enhance the coverage by adding car insurance add-ons into your basic plan at an additional cost.

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What are Car Insurance Add-ons?

Several general insurance companies offer car insurance to financially help the customers in times of need. The insurance plans offer protection against the loss or damage to the car or third party due to accidents caused by natural or man-made disasters. 

You can strengthen this protection by opting for add-ons in your comprehensive insurance plan at an additional cost. The add-ons like zero depreciation cover, engine protect cover, and roadside assistance cover provide excellent benefits in times of need. 

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 eases out the financial stress caused by uncertain accidents. It is why opting for riders is crucial. You should opt for at least one rider option along with your basic car insurance plan, like roadside assistance or engine protection cover. 

List of Five Important Car Insurance Add-ons

Here is a list of the 5 most important car insurance add-ons one must consider at the time of buying a comprehensive car insurance policy:

• Zero Depreciation-With each passing year, the market value of a vehicle depreciates. At the time of claim settlement, the insurance company only factors this depreciated (or current) value of the insured car. . This can make the policyholder pay a hefty amount from his/her pocket. 

If you add zero depreciation cover to your plan, the insurer will consider the market value of your car evaluated at the time of your policy purchase. Further, it pays for the entire estimated claim amount on your behalf.

The insurer will neglect deduction based on depreciation value. Cars up to the age of 5 years are eligible to avail benefit of this cover. 

The depreciation value is subjected to the car model, age, use parts, and similar factors. 

• Engine Protect-The engine protect add-on is especially suitable for those who live in areas where calamities like, flooding of roads, flash floods due to heavy rain, clogged drains, often occur.

This damage caused to the car engine due to these calamities falls under consequential loss. If your car is insured with an engine protect add-on you can raise claim settlement for the consequential engine damage to the insurance company. 

• Consumables-There are a few consumable parts used in the repairs of a car. These parts are 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.

If your car is insured with the consumables add-on, then the insurer will be liable to pay for these costs incurred during the car repair.

• Return to Invoice-This 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 current market value of the insured car.

It is also considered as on-road price compensation which is paid by the insurer.

The on-road price consists of the ex-showroom price, registration costs, and road tax. The policyholder will be eligible to avail of benefits provided by this add-on only when the car is under the age of 3 years. 

• Tyre Protection-It makes complete sense to opt for a tyre protection rider considering the road conditions in India. Tyres are one of the most essential parts of the car and constant repair costs can turn out to be expensive.

If you have added this rider option, you can drive worry-free to any part of the country knowing your insurer will rescue you against any uncertain events. 

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.