We have time and again discussed the importance of having a comprehensive car insurance policy. However, it cannot be denied that an insurance policy has its limitations and it cannot cover everything you want it to. So what can you do? You can increase the coverage and earn added benefits with add-on covers on your Motor Insurance. A little extra premium spent on your car insurance for add on cover can secure your family in a comprehensive manner and this investment might turn out to be your wisest decision.
Let us have a look at some commonly offered add-on covers by insurance companies:
Zero Depreciation Cover
Imagine that your car has met with an accident and the claim amount is 50,000. The insurance company asks you to pay 20,000 as depreciation amount excluding policy excess/deductible. So, what can you do to get the entire amount? You can buy the zero-depreciation cover. With this add-on cover, there will be no depreciation cut and the insurance company will pay the entire amount claimed. You will only need to pay the nominal amount of policy excess/deductible.
No Claim Bonus Protection
If your parked car gets damaged due to an external impact such as flood, fire, or a collision, this add-on cover will protect your No Claim Bonus earned. Not only that, but it will also take the NCB to the next slab. This means that if there is damage in your car and you have made an insurance claim of 20,000 as repair costs, even then you will receive a NCB of 20% in your next premium. Not only that, if you are eligible, your NCB slab will change from 20% to 25%.
The only catch is that the cover can be availed upto 3 claims during the entire policy duration, which isn’t less anyway.
Emergency Assistance Cover
This is typically not an insurance add-on but an add-on that offers you round-the-clock maintenance support to deal with any technical or mechanical fault in your car. If your vehicle breaks down in the middle of the road, the insurer will get your vehicle towed to the nearest garage. The emergency assistance cover also includes minor repairs on site such as tyre changes, lost/broken key assistance, battery jump start, refilling fuel tank in case of emergencies, etc. However, this assistance is limited to 100 km around your registered address.
Return to Invoice
In case of vehicle theft, your insurance company will usually pay dependingon the IDV of your vehicle. However, with this add-on, you will even get paid for the difference between the IDV and the invoice value of the vehicle. That means you will get the exact amount you had paid when buying the vehicle.In addition to this, you will get the amount paid for registration charges and applicable taxes as well. You will only need to pay for the excess/deductible as per the policy. The add-on cost might look like a lot but if you consider the benefit it has in store, it is totally worth it.
Engine & Gear Box Protector
Not many car insurance policies cover for engine and gear box. This add-on cover protects your car’s engine and gearbox in case of water damage or consequential damage due to rain or flood. It pays for the repair of the engine, child parts and all other internal parts of the vehicle along with paying for labor costs, compression tests cost, machine charges and engine cylinder re-boring.
Key Replacement cover
These days, high-end keys are being designed in special ways to increase the safety of the car, but this way, getting a duplicate or replacement keys has become a costly affair. This add-on cover will help you get replacement keys at the earliest and will also pay for it. And given that the add-on cost is minimal, it won’t hurt opting for this one.
Cost of Consumable Items
Reusable and consumable items such as nuts, bolts, washers, screws, lubricants, oils, bearings, gaskets, sealants, filters, etc. may appear inexpensive at first, but all these items when combined together boil down to a significant amount. If your car meets with an accident and needs repair, this add-on cover will pay for all the consumable items used in the repair.
Loss of Use – Downtime Protection
This cover can come in handy if your vehicle is damaged or has been involved in an accident, and is at the garage for repair work. Meanwhile, you are using cabs for daily commute which is costing you a lot. The loss of use-downtime protection will provide coverage against all the other means of transport you use in this case. That means your cab or vehicle rental cost will be borne by the insurance company.
So make sure you get the right add-on covers when you buy a carinsurance policy as these can protect you from a variety of unexpected problems in future. Do not hesitate to buy add-on covers just because you want to save on the premium. Check your driving style, locationand other factors to decide on the add-on covers you would want to purchase. Do not go overboard though as it may affect your finances. Be wise, be smart, and be selective.