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Monday, March 4, 2024

Here’s How Add-On Covers Further Boost Your Car Insurance Policy Coverage

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Indian law has made it mandatory for every car owner to have at least third-party car insurance to legally drive the car on the Indian roads. This basic insurance plan only covers third-party damages and remains ineffective for the first party. Hence, a lot of car owners opt for comprehensive car insurance because of the extensive add-ons coverage it provides, both for the third party and the first-party holder.

What are Add-ons Covers?

Add-on covers are referred to as additional covers that can be purchased by a car owner under the comprehensive insurance policy or under own-damage car insurance. These additional coverages are brought with additional costs to strengthen the policy by benefiting you and your car.

Add-ons help car owners to enhance their financial security of a car through the list of add-ons mentioned below.

Also read: What Are The Top Ways To Get Car Wreckers Canberra Services

Useful Add-on Covers That Benefits Your Car Insurance Policy

Several add-on covers are offered under car insurance plans available in India. The owner must wisely choose these add-ons that only suit the requirements of one’s car.

These add-ons mentioned below provide a detailed description of benefits and exemptions with real-life scenarios as examples.

1.Benefits of Zero Depreciation as an Add-On:

Like all other commodities, even cars are exposed to depreciation, which means their value reduces with time because of certain abrasions. So, with standard car insurance coverage, the amount of depreciation applicable on the spare parts of the car is deducted and then the claim is settled by the insurance company in case of an accident. If you don’t want this to happen and want the insurance company to pay for the complete expense, then this zero depreciation add-on cover is a must. Because of the extensive financial security it provides, it has been highly recommended by many car owners. However, this add-on can be opted only for cars that are not older than 5 years.  Some of  Its benefits are:

The burden of bearing depreciation shifts to the insurance company.

Zero depreciation amount is deducted from the claim.

2. Benefits of Roadside Assistance Cover:

Another popular add-on cover that is offered at a very nominal cost to car owners is roadside assistance. Imagine the car breaking down in the middle of nowhere due to an accident? Roadside assistance add-on is like a magic wand that could help you fix this situation. All you need to do is to call the roadside assistance number that’s usually available 24×7.

Benefits are:

  • Immediate assistance will be available 24/7
  • This add-on provides coverage for minor repairs, replacement of keys, replacing a flat tyre, replacing a dead battery, or even towing the vehicle to a specific destination.

3. Complete Engine Protection Coverage:

In standard policy coverage, damages during the accident are only covered. But there are times your engine may start giving you trouble much later because of the accidental impact, which is not covered under the insurance. But with an engine protection add-on cover, you can seek coverage for such damages too! The most common reasons for the car engine to get damaged is when due to heavy rains water seeps into the engine, or even when there is a leakage of lubricating oil. Adding this cover will provide coverage for damages caused due to these reasons which are not covered under standard comprehensive car insurance.

Also read: India Used Car Market to Grow with a steady pace until FY2027

4. Consumable Cover Benefits:

Car materials like nuts & bolts, grease, washer, lubricant, screws, bearings to name a few are referred to as consumable items, and most standard insurances don’t cover the cost of replacing these consumable items during the claim process, the insurer has to bear the cost. However, with a consumable cover add-on, the insurance company will provide coverage for most consumable items and the reaping benefits under this cover are:

  • Consumable cover benefits reimburse the expenses incurred towards consumable items used in the car during repair.
  • It provides coverage for all the consumable items while the car is being repaired.
  • This add-on is only applicable for new cars, or for cars that are less than five years old.

5. Benefits of Return to Invoice Cover:

In the event of the car being damaged beyond repair, or if it gets stolen, then the add-on invoice cover enables the insurer to receive full compensation for the amount that’s mentioned on the last complete invoice of the car during the claim process.

  • Enables car owners to receive the invoice value of the car when faced with unforeseen events.
  • With these benefits, the owner has financial security and fewer chances to undergo a financial crunch.
  • However, Return-to Invoice cover is available only for cars that are less than three or five years old(dependent on the insurer/insurance company).

6. Add-on for Passenger Cover:

During an accident, there is every possibility that along with the car, even the driver and passengers may sustain injuries. The personal accident cover under a standard car insurance policy covers only the car owner, leaving out the passengers. This add-on cover removes the emotional stress and extends to cover more on these benefits:

  • The passenger cover provides coverage on medical expenses for the passenger of the insured car in case of accidents.
  • It covers the cost of hospitalization expenses, treatment expenses and ambulance fees.
  • Most importantly, it also provides compensation in case the accident results in the death or disability of the passenger.

7. Tyre Protection Cover Benefits:

Tyres are the most important component of the car that takes the maximum beating because of the different kinds of roads it travels on. We all know that replacing a damaged tyre can be a costly affair, and this is not covered under standard coverage offered by comprehensive car insurance. So having a tyre protection add-on cover helps you save with these benefits

  • The coverage reimburses any expenses incurred towards the repair or replacement of the tyre of the insured car.
  • It covers labour charges incurred for removing, refitting, or even rebalancing the tyres.
  • Tyre related damages are fully taken care of by the insured company, including puncture, in-tyre bulge, tyre cut, bursting of the tyre, etc.

With this detailed information, now you know how add-on covers boost more security through an extensive car insurance policy. One thing to be mindful of is that, since these are extending additional coverages for the car, there is an additional cost involved. However, the added cost towards premium for these add-ons is absolutely worth it keeping in mind the benefits it extends.

Also read: Mistakes To Avoid with Car Maintenance

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