Comprehensive car insurance plans allow all-around protection for your beloved car. These plans cover the mandatory third-party liability and also give financial assistance if your car is damaged or stolen. To add icing to the cake, comprehensive car insurance plans also offer optional add-ons so that you can further widen the coverage as per your needs. Do you know about these add-ons?
What are add-on car insurance covers?
Add-on car insurance covers are optional coverage benefits that can be added to your base policy. There are different types of add-ons available in the market and each add-on offers a specific type of coverage. Add-ons cover different types of emergencies that you might face when using your car and enhance the claim amount. Each add-on comes at an additional premium and you can choose the add-ons depending on your coverage needs.
Best add-ons for 2022
There are different types of add-ons available in the market for 360-degree protection in your car insurance plan. Among the available options, five of the best add-ons that you can opt for include the following –
- Zero depreciation add-on
This is, by far, the most useful and relevant add-on that you can opt for in your car insurance policy. To understand this add-on, you need to understand the concept of depreciation. As you use your car, its parts suffer regular wear and tear which is not covered in your car insurance policy. As such, in the case of damage, the depreciated part of the car might get repaired or replaced. Since car insurance does not cover depreciation, the cost of depreciation is deducted from the repair or replacement cost of the part. This deduction depends on the type of part that is damaged. While the garage charges the full amount, the insurance company pays a fraction of the cost after deducting depreciation. The cost of depreciation, thus, becomes your out-of-pocket expense.
This is where the zero depreciation add-on comes into the picture. If you choose this add-on, depreciation is considered to be nil. Thus, no depreciation is deducted by the insurer and you get the full amount charged by the garage for repairing the damaged part.
Things to note
The zero depreciation add-on is usually available for cars up to 5 years old. If your car is older, you might not get the cover. Moreover, there might be a limit to the total number of zero depreciation claims that you might make in your policy. If the claims exceed the specified limit, the add-on would not apply for the exceeding claims.
- Roadside assistance add-on
The roadside assistance add-on promises 24*7 assistance if your car breaks down in the middle of the road and you cannot tow it to the nearest garage. If you have the add-on you can simply call up the insurance company and the company would provide you with the necessary assistance so that you can complete your commute.
Under roadside assistance, add-on facilities such as tyre replacement, empty fuel tank, flat tyres, towing, etc. are offered.
Things to note
Under some car insurance plans, the roadside assistance cover might come as an inbuilt benefit. You should, thus, check whether the policy that you are considering allows an inbuilt coverage or an optional one.
- NCB protection add-on
No claim bonus (NCB) is a benefit that you get if you don’t claim your car insurance policy. The bonus allows you to claim a discount at the time of renewals. Moreover, the bonus keeps on increasing after each successive claim-free year. However, a single claim wipes out the accumulated bonus and you lose the renewal discount. Not if you have the NCB protection add-on. The add-on keeps the NCB intact even if you claim your car insurance policy.
- Return to invoice add-on
In the case of a total loss or theft of the car, the insurance company pays the Insured Declared Value (IDV) to settle the claim. The IDV is the depreciated value of the car depending on its age. It is lower than what you paid to buy the car. The return to invoice add-on, however, gives you the invoice value of the car if it is totalled or stolen. The add-on, thus, enhances the claim amount and helps you replace the car without any financial strain.
- Engine protection add-on
Car insurance policies do not cover engine damages that might arise due to water seepage. To get coverage for such damages you need the engine protection add-on. The add-on covers engine damages caused due to water-logging and seepage.
Things to note
The engine protection add-on is highly recommended if you live in a flood-prone area or in an area where water logging is a major concern during monsoons.
These are some of the best add-ons that can give you more rounded protection in your car insurance policy. Keep these add-ons in mind when you buy or renew a car insurance plan in 2022 so that you can enjoy complete financial protection against car-related troubles.