You always long for more- more good, more taste, more food. Right? Thoda aur, thoda aur karte karte you fill your pockets till it is safe. The same rule applies to car insurance policies where you have to be wary of the total coverage provided by the company so as to choose the right plan. A Comprehensive Car Insurance Policy gives coverage when you suffer from own damage or third-party liability. The purview of cover isn’t all-encompassing and this is why you should buy add-on covers to enhance the coverage.
What is Car Insurance add-ons?
Some extra covers that you need to purchase to extend the financial protection of your vehicle are referred to as add-ons under Car Insurance. But these add-on covers come with additional premium.
When can you buy Car Insurance add-ons?
The Car Insurance add-ons can be purchased either at the time of buying the vehicle or during renewal. An add-on cover can be purchased only if the vehicle has Comprehensive Car Insurance.
Types of add-ons in Car Insurance
Offered with additional premium:
- Zero Depreciation Cover.
- Return to Invoice Cover.
- Engine & Gear-box protection Cover.
- Tyre Protect Cover.
- Breakdown Assistance.
- Consumable Cover.
- Passenger Cover.
Why are the add-on covers important?
1.Zero Depreciation Cover
Under a Comprehensive Motor Insurance, the cost of repairs is reimbursed only after deductions. This refers to the depreciation applicable to parts like metal, fibreglass, wood, etc.
But if you buy Zero Depreciation add-on, then a complete claim amount will be disbursed. For example, if the cost of repair for the damaged was Rs.40,000/-. The depreciation amount is Rs.11,000/-. Without the Zero Depreciation Cover, you will get Rs.29,000/- only as of the settlement. But with Zero Depreciation Cover, you will receive the total amount of Rs.40,000/-. So, buying the add-on would have been beneficial.
- Engine and Gearbox Protection Cover
If the engine of the car gets damaged in an accident and let’s say the cost of repair for the engine was Rs.49,000/-. Now, under the basic Car Insurance Policy, your claim will not be admitted. But with the Engine Protection Cover, Rs.49,000/- will be covered.
- Consumable Cover
This add-on cover will pay you for the minor components like lubricants, nuts and bolts, and others. After the accident, the garage keeper realized that your car needs an immediate refill for lubricants which will cost Rs.3000/-. The cost of the repair was close to Rs.8,000 to remove dents and scratches.
Without the Consumable Cover, the motor policy will pay you Rs.8,000/-. But with this add-on cover, you will get Rs.11,000/- including refill charges.
- Return-to-Invoice Cover
The cover pays you if someone steals your car or if the damage is beyond repair. In the night, some burglars broke the glass of your Audi worth Rs.37 lakhs and then stole the car. Such loss will be categorized as a total loss when you have no possibility of recovering your car.
With the Return-to-Invoice Cover, the insurance company will reimburse you an amount equal to the current market value of that car.
- Tyre Protect Cover
Tyre damage is not covered under the Motor Insurance Policy unless it happens due to an accident. However, this add-on covers you against tyre bursts, bulges, and cuts at any given time.
Say, you took your Audi car in the hilly terrain due to which one of the tires burst. The cost of replacement amounted to Rs.40,000/-. If you had the Tyre Protect Cover then only you will receive Rs.40,000/- from the insurer.
- Breakdown Assistance Cover
The Breakdown- Assistance cover gets you help in dire situations. With this add-on cover, the insurance company will arrange for the quick repairs. Otherwise, they will tow your vehicle to the nearest garage. One call and the rest will be managed for you.
- Passenger Cover
You need to take passenger cover to protect co-riders at the time of accident. In case of an unfortunate accident, say, your friend gets hurt and you take him to the hospital. You must bear the hospital expenses because in your Motor Policy, the passengers are not covered. Paying extra for this add-on will have you covered.
Add-on covers help to improve your financial security. The basic car cover is not always sufficient. Buying add-on covers will help you.