7 Add on Covers on Your Car Insurance You Definitely Need

By | October 6, 2015


You get insurance to make sure you are covered from accidents but what if your car insurance ends up costing way more than you expected?

That’s where add-ons come to your rescue.

Here is a look at 7 add-on covers you should not miss when buying car insurance.

1. No Depreciation Cover

With time, the cost of your car depreciates, and so does the cost of its parts. If your car meets an accident, you may not get full claim for parts. For example, a claim of 0 to 50% at best is offered for various parts like rubber, plastic and fiber. To get a comprehensive insurance, you must therefore opt for a zero deduction add-on, which will cover all costs incurred in case of any accident, without bringing in the depreciation factor.

2. NCB Protection

The no claim bonus (NBC) is a reward for not lodging any claim during an insurance tenure. It is offered as a discount for your future premiums.

In case you have a minor claim during the tenure, you are denied any discounts on your policy premium during your next renewal. But if you have an NCB protection add-on by paying a small additional premium, you can enjoy NCB protection. This means, despite making claims, you can enjoy NCB discounts while renewing your policy.

Additional read: Know all about No Claim Bonus in motor insurance

3. Engine and Electronic Circuit Cover

An engine is the lifeline of your vehicle and is prone to failures due to its various electronic components. A standard insurance does not offer protection for figurative engine failures. Engine and electronic circuit cover is significant as the repair of these parts can cost you a bomb due to high precision involved in its repair.

Take the case of Ravi, whose car got stuck in a monsoon shower. His car’s electronic circuit got completely damaged. Since he did not have an engine cover add-on, he was left with little choice but to bear the costs of repair which ran to Rs. 12,000.  He would have protected his engine with an add-on cover and saved his hard earned money.

4. Quick Road Assistance

Imagine driving through a remote location at night and your car gives up on you due to mechanical reasons. You are left no other option than to wait till on-the-road assistants come to your rescue.

Opting for a quick road assistance add-on will help you with such assistance if you are ever faced with any such encounter. From a flat tyre to a mishap or technical fault, this insurance rider covers you to avail taxis, accommodation and fuel assistance benefits in such cases.

5. Return to Invoice Cover

Suresh, a Delhi resident brought a new Maruti Swift VXi at an ex-showroom price of Rs. 5,26,323. He took up a standard insurance with an annual premium of Rs. 16,000. He paid a further amount towards road tax, accessories, registration charges etc.

Now, if Suresh’s car gets stolen or completely damaged in an accident, he will at best get the ex-showroom cost minus 5% for depreciation of the vehicle. The amount paid against accessories and other overheads with the dealer will not be covered under this insurance. By paying a nominal amount towards a return to invoice an add-on cover, Suresh can get protection for the entire amount he paid towards the car at the time of purchase.

6. Key Replacement Cover

Keys of cars today are automated and are made with robotic engineering to offer greater security. So losing your ignition key can be a costly affair and can run into thousands, to get a replacement. Car keys can be lost, misplaced or stolen. In any case, with a standard insurance policy you do not get full replacement cover for the ignition keys.

If you have a key replacement add-on cover, you can save yourself from the high cost of key replacement with a small annual additional premium.

7. PA Cover

India is humorously known as the road accident capital of the world. You are never safe when driving, as accidents can many times happen due to mistakes of other parties involved. Any damage happening to third parties or to third party property means you have to pay compensation for it, which can run into lakhs of rupees.

Comprehensive car insurance includes third party liability to the driver, passengers and limited third party properties. Opting for additional PA cover offers enhanced coverage for passengers as well as third parties.

Opting for add-ons helps you save significant money in a long run.


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