Significance of Different Car Insurance Add-Ons

Unlike earlier times when motor insurance providers only offered a general car insurance policy, today there are a multitude of optional covers to strengthen your insurance policy. These are known as add-on covers which offer insurance for damages and events in addition to a third party or own damage cover. These can be bought by paying a nominal fee and have the ability of saving you huge sums of money which you would have otherwise had to pay, during settling your claims. Read on to find out the significance of add-on car insurance covers and the benefits that you can avail under it.

Significance of Different Car Insurance Add-Ons

The following are a list of points highlighting different add-ons and their benefits to help you to understand how significant it is in increasing the cover of your car insurance policy -  

• Engine Protect Add-On 

This add-on is considered to be relevant for new car owners. It compensates the cost of engine related repairs and is worth purchasing because it ensures that an engine damage does not burn a hole in your pocket. It is recommended for people living in flood prone areas where intermittent water-logging can lead to a regular wear and tear of your car’s engine. 

• Zero Depreciation Add-On 

The most commonly recommended add-on, this cover offers a complete compensation for all your car’s damaged machine parts. Usually, insurance companies deduct a depreciation value from your insurance policy in case your car has suffered a loss in its value over time. Under this option, however, the damaged parts of your car are not accounted for and you receive full reimbursement for the replacement of depreciable parts as well. 

• No Claim Bonus (NCB) Protect Add-On  

A No Claim Bonus (NCB) is a discount on premiums that you receive for not making any claims on your insurance company for a single year. The discount is accumulated over the year and can be as high as 50%. However, the accumulated discounts can come to be undone even if you make a single claim on your insurance provider. But you can safeguard this with a NCB Protect add-on where you can preserve your earlier discounts even after making a claim. 

• Roadside Assistance Add-On 

As the name suggests, this add-on cover offers round the clock services such as refuelling, towing, tyre change and arranging a mechanic in case of a complete breakdown. It is designed to help you if you are stranded on a highway with no recourse to help. It is beneficial for people whose work requires them to travel frequently and in some cases, is also offered as an in-built aspect of a comprehensive car insurance policy.

• Return To Invoice Add-On 

A return to invoice add-on cover ensures the complete payment of your car’s market price in case of total loss or theft. In addition to the Insured Declared Value (IDV) you receive a refund of your registration charges, road tax and the original invoice value. It is significantly useful in places where drivers commute daily on the highway or live in theft prone areas. 

Take Away 

Hopefully, you can now understand the significance of car insurance add-on covers and the benefits it offers in strengthening your car insurance policy. This list will aid you in selecting the most appropriate add-on covers and you need to be in a dilemma about the utility of the same. In India, it is mandatory for all car owners to have a car insurance policy  and you should be wise to include some of these in your insurance policy to reap maximum benefits. 

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.