How Useful Are Add-On Car Insurance Covers?
Updated On Oct 15, 2023
To enhance the coverage offered by a car insurance plan, a car insurance add-on cover is an extra cover which can be opted for with a standard car insurance policy. For a comprehensive car insurance plan, there are numerous add-ons which can be selected.
A basic car insurance plan, that is, third-party liability insurance, does not have adequate coverage. Even a comprehensive car insurance plan can still skip a few main liabilities. When you require extended coverage, add-on covers give the insured car extra protection, which will help enhance the basic car insurance policy.
List of Useful Add-On Covers for Your Car
- No-Claim Bonus Retention: NCB is a benefit given to a person if, within a policy year, they do not make any claim. At the time of policy renewal, the bonus is given in the form of a premium discount. However, you can lose the NCB if you make a claim, even a small one. If you get the NCB retention cover you can make claims up to a specific amount and your NCB would not be affected.
- Zero Depreciation: When claims are raised for the replacement parts of the car, the car insurance provider covers only a portion of the replacement (depreciated value of the parts) and not the whole sum. Zero-depreciation auto insurance cover means that you get the entire cost.
- Cash Allowance: If you have a car in the garage for a couple of days, you require money to travel. The insurer will repay the amount expended on the commute until you get your vehicle back from repair.
- Return to Invoice Cover: You get the original invoice value, plus registration and road tax charges of the vehicle in case of total loss/theft of your car, and not only Insured Declared Value (IDV) (a market value that depreciates over time).
- Engine Repair/Roadside Assistance: If the engine of your car is damaged because of an accident, then this add-on cover prevents the insured from spending money out of his/her own pocket. However, if your vehicle has a flat tire/mechanical malfunction, the roadside assistance assures you get paid for the service without any hassle.
- Personal Accident Cover: A comprehensive cover provides you the choice of purchasing personal accident insurance that will include a lump sum payout in the case of accidental death or permanent/partial disability caused by a car accident.
- Key Replacement Cover: Where the policyholder loses the car key, or it gets replaced, or the car gets robbed, the insurance provider ensures that you get full assistance.
- Loss of Personal Belongings: This rider will cover your belongings. If burglary happens, even if the vehicle is locked, the loss is compensated for by this cover.
- Medical Expenses Cover: When you have an unavoidable accident that involves harm to fellow passengers, the cover allows you to claim compensation for the money spent on treatment costs. This often involves treatment for emergencies and individuals who need immediate medical help.
- Consumables Cover: The insurer shall make a payment for the value for replacement consumables (nuts/bolts/engine oil/bearings) that are usually exempt from regular motor insurance from claim amounts. Vehicles above three years of age are usually not eligible for this cover.
A multitude of add-on cover options is given to policyholders, which they may select as per their specifications and budget. Policyholders, however, need to carefully pick the proper add-on covers that will potentially prove useful and beneficial to them during a period of emergencies.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.