After purchasing a car, the first thing on your mind will probably be to get a four-wheeler insurance for legal and financial safety. Although a comprehensive car plan is designed to provide third-party and own-damage coverage, there are several aspects which are not covered under this car policy.
It is essential to compare car insurance policies to find the most affordable policy with sufficient coverage. However, add-on covers provide additional coverage to ensure enhanced financial safety. This article draws attention to 5 important add-ons in car insurance that will ensure better coverage for your vehicle.
5 Must-have Add-ons in Car Insurance You Should Know About
1. Zero Depreciation
Depreciation is the term used to describe the lowering of the market value of a vehicle over time. In simple words, the depreciation of a car starts from the moment it is sold and in the case of a four-wheeler insurance policy, the insurer takes into account the depreciated value of the vehicle when you file a claim.
However, with one of the popular insurance add-ons, which is the zero depreciation or nil depreciation cover, you can avoid making this payment. This means the insurer will settle your claim without factoring in the reduced value, helping you save your out-of-pocket expenses.
2. Engine Protection
Among the important motor insurance add-ons is engine protection coverage, which provides financial coverage for your car’s engine. This cover is helpful for owners of new vehicles, especially if you own a high-end car, as the cost of repairing a car’s engine can be expensive.
If you reside in a place that is prone to waterlogging, this cover can prove beneficial for you as your expenses for repairing the car’s engine will be covered under your insurance.
3. Roadside Assistance
Roadside assistance is among the important add-ons in car insurance because it helps you when you need it the most. Suppose your car breaks down in the middle of the road. With this add-on cover, you can expect services like help with battery-related issues, towing, refuelling, flat tyre changes and even arranging for a mechanic.
Reputable insurance providers like TATA AIG offer these services round-the-clock, and your insurer will send you help wherever you are stranded. Moreover, you will get a taxi service if you are in an unknown place.
4. Consumables Cover
One of the important but lesser-known add-on covers in motor insurance is the consumables cover. Standard car policies do not cover the costs of consumables like oils, bolts, nuts, etc. This can prove to be significantly costly if you own a high-end car.
However, with this cover, your insurer will pay for repairing or replacing such consumables, so you are spared from spending from your pocket.
5. NCB Retention
The No Claim Bonus is a discount you earn when you avoid making any claims during a policy year. Over the years, the NCB discount can reach up to 50%, which lowers your insurance premium cost.
To keep your NCB intact while making claims, you will need the NCB retention cover. Under this add-on coverage, you can make up to two claims, which will not affect your NCB. Generally, the claims you can make with this add-on include glass or windshield replacement or repair, total theft and even total loss of your vehicle, depending on your policy terms.
Other Car Insurance Add-ons Worth Considering
Return to Invoice
This add-on allows you to receive compensation equivalent to your car’s invoice value. Therefore, if your car gets stolen or is damaged beyond repair, your insurer will have to pay you the sum you paid while purchasing the vehicle and not the insured sum based on the car’s depreciated value.
Loss of Belongings
As the name states, this add-on cover can prove beneficial in receiving compensation for the loss of personal belongings due to theft or accident. Although initially, the extra amount added to your premium may seem expensive, in case of loss of personal belongings, you receive significant compensation from your insurer.
Conclusion
It is clear from above that motor insurance add-ons are extra layers of financial safety that help maximise the coverage for your vehicle. These add-ons cover areas generally not covered under a standard car policy but are still required to protect you from financial losses.
So, make sure that the next time you are buying a car policy, you include these add-ons for financial protection from hefty expenditure despite owning a car policy.
