Over the years, the importance of car insurance in India has grown significantly. Car insurance provides financial assurance to policyholders after an accident and unburdens them from incurred losses of the car or to a third party. The security it provides makes Third-party insurance necessary and mandatory for all cars as per the Motor Vehicle Act. Third-party insurance plans cover legal liability arising from injuries to third parties by the insured vehicle. Any damages to a third party, person or property by the insured car are covered by it.

However, comprehensive car insurance provides more extensive coverage. It not only covers the insured car against any losses or damages but also covers losses caused to any third parties by the vehicle. Thus, it gives coverage for third party losses and simultaneously protects the car from accidents, fire, natural calamity, theft, vandalism, falling objects, etc. So comprehensive car insurance is essentially a blend of own damage and third party insurance.

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Types of Add-ons for Comprehensive Car Insurance

While Comprehensive car insurance provides holistic coverage for a vehicle, this cover can be enhanced for intensive protection. Add-ons for car insurance supplement the scope of coverage of a plan and provide far-reaching, additional benefits. These add-ons strengthen the financial security of the car by enhancing the scope of coverage. Let's take a look at some of the popular add-ons for comprehensive car insurance:

Zero Depreciation Add-on:

When a car gets old, its value depreciates, along with the value of its parts. Insurance companies account for the depreciating value of car parts and deduct it from the Insured Declared Value(IDV) of the car while settling claims. It means that the claim amount depends on the depreciation applicable to the car parts. However, with a Zero Depreciation add-on, the value of the insured car parts is protected from depreciating for claim settlement. This add-on is usually available for up to five-year-old cars.

Engine Protection Add-on:

As an essential part of the vehicle, the fitness of an engine matters big time. Unfortunately, comprehensive car insurance does not cover non-accidental damages to the engine. That's where the Engine Protection add-on steps into the picture and gives financial protection to the engine against all damages. From issues like an oil spill, water ingression, electrical or mechanical breakdown, to complete replacement of car engine parts, etc., this add-on unburdens the insured of all engine-related expenses.

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No Claim Bonus Protection Add-on:

The No-claim bonus or NCB is among the most useful features of car insurance. It gives the insured a discount on the premium for having a claim-free policy year. Policyholders can save between 20-50 per cent in five years by raising no claims. However, with a No Claim Bonus Protection Add-on, the insured gets a discount despite raising a claim. It allows the insured to raise their 'own damage' claims and still receive the NCB by protecting the no discount premium.

Return to Invoice Add-on:

The value of a car starts depreciating as soon as it leaves the showroom. While getting car insurance, the insurer accounts for the IDV by estimating the car's market value. Its disadvantage is that the market value will always be lesser in amount compared to the invoice value. Thus, the owner does not receive the invoice value of the car even if it suffers a total loss. But the Return to Invoice Add-on fixes the IDV of the vehicle to its purchased price and ensures that the insured gets the invoice value of the car during claim settlement. This cover applies to 3-5-year-old cars and ensures a higher claim amount for car owners.

Roadside Assistance Add-on:

A car can sometimes break down in the middle of the road without any warning. Pulling it back together may require expensive repair work. This is where the Road Side Assistance add-on comes in handy. It covers assistance services such as changing flat tyres, on-site repairs, fuel delivery, arranging duplicate car keys, car towing, battery jumpstart, etc. Hence, the scope of coverage of car insurance can be extended with add-ons for in-depth protection. It is imperative to choose add-ons as per your specific requirements while getting comprehensive car insurance and enjoy their long-term benefits.

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