Car insurance add-on covers are additional coverage benefits that provide enhanced protection for the insured vehicle. By paying an additional premium for an add-on cover, you can increase your coverage benefits for damages not covered by a standard car insurance policy.
Because add-on covers provide additional coverage to an insured vehicle, they are not free. A car owner must pay an additional premium to purchase add-on coverage under their car insurance policy. As a result, purchasing add-on coverage raises car insurance premiums.
On the other hand, car insurance add-on covers are only available with comprehensive car insurance or standalone own damage car insurance plans, both during a new purchase or renewal of car insurance. A third-party vehicle insurance premium does not cover it. This occurs because third-party car insurance only covers damages or injuries caused to third parties and does not cover the insured car’s damages.
Purchasing add-on covers under third-party insurance will thus be pointless. Car insurance companies in India provide a variety of car insurance add-on covers.
Consider the following add-on covers that can be purchased as part of a comprehensive or standalone own-damage car insurance policy:
- Coverage for zero depreciation:
The Zero Depreciation cover is another add-on cover that provides ease while calculating depreciation on the car’s parts and allows the car owner to make a more significant claim.
It ensures that the depreciation cost is not deducted when the claim amount is paid out at the time of settlement. This add-on cover, known as zero depreciation or bumper-to-bumper car insurance, is typically available for vehicles up to five years old.
- Coverage for engine protection:
Engine Protection covers any loss or damage to the car’s engine caused by issues such as water congestion, oil spill, mechanical or electrical breakdown, etc. It also offers financial assistance to replace the car’s engine or parts.
However, the engine protection cover, like the zero-depreciation cover, is only available to vehicles less than five years old. It is essential to know how to check car insurance expiry date and be aware of your policy details, to imply the coverage details during any emergencies.
- Coverage for no-claim bonuses:
A No claim bonus protection policy safeguards a car owner’s NCB even if they file a claim. It maintains the NCB even if the car owner claims in the previous policy year. It allows car owners to use the NCB to reduce their premiums regardless of whether a claim was filed.
It is important to note that NCB protection cover only applies to the own damage premium, as the third-party portion of the total premium is determined by the IRDAI or insurance regulatory and development authority of india and cannot be changed.
- Coverage for roadside assistance:
A Roadside assistance policy covers the car owner for any on-road assistance services that may be required if the insured vehicle breaks down in the middle of the road. With a simple phone call to the car insurance company, a mechanic is dispatched to inspect the car and assist.
Change a flat tyre, minor on-site repair, car towing, fuel delivery, replacement car keys, battery jumpstart, and other services are available under this add-on cover.
- Back to invoice cover:
Due to the insured car’s depreciation over time, the car owner will not receive the car’s invoice value even if the vehicle is totalled. This is where the return to invoice add-on cover comes in handy. In case of a total loss, constructive loss, or theft of a car, the return to invoice cover allows the car owner to receive the invoice value as the claim amount.
* Standard T&C Apply
# Visit the official website of IRDAI for further details.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.