Useful Add-On Covers for Car Insurance Explained

Written by Sharad Bajaj

Updated On Oct 14, 20232 min read

Useful Add-On Covers for Car Insurance Explained

A standard car insurance policy provides coverage for a considerable range of damages to the car. Along with the basic car insurance policy, however, one can avail of a range of car insurance add-on options that provide additional coverage in varied and specific scenarios. Available at an additional premium, each add-on allows the customer to tailor their insurance plan specifically to their needs and the risk exposure of their car, allowing them to save considerable amounts of money that would otherwise have been spent at the time of raising insurance claims.

Useful Add-on Cover in Car Insurance

The following are the main types of car insurance add-ons available:

1. Emergency Roadside Assistance Coverage

In the event of a roadside breakdown of a car, with this add-on the insurer would provide coverage for emergency services such as car towing, mechanic services, refuelling, changing of a flat tyre, etc. With this add-on, thus, you can avoid the financial and practical hardship of coordinating and availing these services, and can receive reliable emergency services from your insurance provider with enhanced coverage onto your standard policy itself.

2. Engine Protection Coverage

Engine Protection Coverage essentially provides cover for situations where there is damage caused to the engine outside of accident situations. Many areas that are prone to situations such as flooding can cause damage to the engines of cars, which would fall outside of the standard comprehensive car insurance coverage. Engine protection coverage would provide liability cover in cases of damage to the engine through water ingression which leads to hydrostatic lock. It would also provide coverage in situations such as lubrication oil leakage or gearbox damage.

3. Zero Depreciation

Under normal circumstances, a regular insurance policy would result in the deduction of a deprecation amount from a claim for the replacement of a car part damaged in an accident. The depreciation amount refers to the loss of the value of the car parts over time. With the Zero Depreciation coverage add-on, the policyholder would be entitled to the full cost of damaged car parts to be replaced in an event such as a road accident, without the deduction of the depreciation amount which would otherwise come from the policyholder’s pocket.

4. Return to Invoice

A standard insurance coverage policy would reimburse the policyholder with the Insurance Declared Value or IDV of a car in the event of theft or total damage to the vehicle. The IDV refers to the market value of the car at the time that the claim is raised, and the IDV thus deprecates over time. The Return to Invoice coverage add-on is extremely useful as it ensures that the policyholder would be entitled to the cost of the car on the initial invoice at the point of purchase rather than the deprecated market value, and thus this add-on would cover the difference between the initial invoice value and the market value at the time of theft or irreparable damage. It is especially recommended for those who reside in theft prone areas or take long distance journeys on highways.

Conclusion

Car insurance add-ons are therefore immensely useful purchases which minimise out of pocket expenses when raising claims for damage or theft of vehicles.

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.

Written by Sharad Bajaj

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Sharad is an insurance industry veteran who has managed motor insurance products for over a decade. He helped set up and scale the motor insurance vertical for a leading insurance company in his previous stint. In his spare time, Sharad likes to read and be in tune with nature.