The Add-On Coverages in Car Insurance: Complete Guide

Whether you buy car insurance online or offline, it is ideal to ensure you have the best coverage possible. So, not only should you ensure you are getting the right coverage amount by using an online car insurance calculator, but you should also ensure you have the right sort of add-ons. Car insurance add-ons are the types of covers you can buy alongside your comprehensive policy. Let’s look at a few of the add-on car insurance covers you can choose from.

Types of Add-ons for Your Car Insurance Policy

If you are planning to purchase a new comprehensive car insurance, these are the add-ons you can include in your policy to enhance its coverage:

• Zero Depreciation Cover

Also known as “bumper-to-bumper cover”, it is an add-on offering protection against the depreciation of your vehicle and its parts. When you get zero depreciation coverage, it allows you to claim the total cost of your car or its damaged parts. Thus, it allows you to get the full cost for your car’s damaged parts, thus making it financially easier for you to replace these. Most insurance providers offer this cover only for vehicles under five years of age.

• Consumables Cover

Components like brake oil, power steering oil, gearbox oil, engine oil, as well as screws, nuts, and bolts, are considered consumables in a car. If your car were to be damaged in an accident, you will likely bring it into a garage for repairs. During these repairs, these consumables may need to be replaced. A regular insurance policy, such as a third-party car insurance plan, may not offer coverage for these consumables. Thus, having a consumables cover would help save the costs of these consumables after your car undergoes post-accident repairs.

• Return to Invoice Cover

If your car ever gets stolen or encounters an accident where it is damaged beyond repair, your basic comprehensive motor insurance policy would be rendered unusable. You can avoid this with a return to invoice cover in the plan. This sort of cover can help you recover the full cost of your vehicle if it was not possible to get it repaired. Without this cover, the loss of your car would mean a financial loss to you.

• Roadside Assistance Cover

Imagine you are taking a road trip with your family. You are planning to travel to a couple of cities and spend some quality time with your loved ones. Ensuring the health of your car, in this situation, becomes a priority. Before you embark on this journey, you may do your best to make certain your car is in the best condition. However, you may still encounter a problem during your journey. For example, your tyre may get punctured or there may be an oil leak. In a foreign land, it may be difficult to get help for this. With a roadside assistance cover, it can be easier to get this help when needed. Ensure you read the policy terms carefully to understand the scope of this coverage.

• Engine and Gearbox Protection Cover

Your regular third-party car insurance does not cover damage to your engine. To have this cover, you need to either buy this add-on separately or ensure the cover is included in your comprehensive motor insurance. But why do you need this cover? Oftentimes, an accident can cause damage to your engine and gearbox. Without insurance for these parts, you may have to pay for their repair or replacement out-of-pocket.

• Daily Conveyance Benefit

After an accident, your car could end up spending a significant amount of time in repairs before it is handed back to you in better condition, if not as pristine as before. However, while your car is in repair, you will need to spend money on your commute, which you would have otherwise used your car for. The daily conveyance benefit takes care of this expense. You will either be paid an allowance or be offered coupons for the services of cab companies.

• Tyre Protection Cover

Tyres are another important component of your car. They undergo regular wear and tear and could be damaged during a mishap. However, coverage for them is not offered when you buy car insurance online or offline. Instead, you must choose the tyre protection add-on when purchasing your original car insurance policy. This will allow you to protect your tyres if they were to be damaged because of an accident.

• Key and Lock Protect Cover

It is not uncommon for someone to misplace their keys or forget where they left them. Most of the time, they tend to find them after searching a little. However, in rare cases, you may end up losing them, and therefore have to replace your car lock. Instead of paying for it out-of-pocket, you can choose to claim it under the Key and Lock protect cover. You may be able to find this cover and add it to your plan when buying your car insurance online.

• Loss of Personal Belongings Cover

In case of an accident or theft, it is not only the car that may be damaged. Even your personal belongings that you may have left in the car may be damaged or lost. A regular car insurance policy may not be able to cover this. However, with a Loss of Personal Belongings cover, you may be able to seek reimbursement for your loss.

• Pays As You Drive Cover

This is one of the newer introductions in the insurance market. With this cover, you may be able to save on the premium of your next Own Damage insurance renewal based on how much you have driven your car. Thus, if you have used your car less, you may be able to save more on your comprehensive insurance policy renewal.

• No Claim Bonus Protection Cover

A no claim bonus (NCB) is a discount provided by the insurance company for not making any claims during the policy period. With a no claim bonus protection cover, you can retain the NCB even if you make a claim during the policy period. This add-on is useful for those who want to protect their NCB, which can result in a significant reduction in premium during policy renewal.*

How to Choose Add-ons?

While you may feel like including all the available add-ons to your policy, it is important to remember that when you purchase , including too many add-ons increase the cost of the policy. Many of the add-ons are unutilised, which ends up becoming a waste of your money. Before purchasing the policy, make a list of add-ons which would meet your requirements. NCB cover, Zero depreciation cover and engine protection cover are some add-ons which you should consider including in your policy as they are beneficial. Do note that add-ons may slightly increase your premium. Ensure that you use an online car insurance calculator to get a better idea of your premium costs. 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. ^## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply.

FAQs on Car Insurance Add-Ons

1. Are car insurance add-ons free of cost?

No, car insurance add-ons are not free of cost. They come with an additional premium, which varies depending on the type of add-on coverage you choose.

2. Is there a limit to the number of add-ons I can purchase?

There is typically no strict limit to the number of add-ons you can purchase, but it depends on the insurer’s policy offerings and the type of add-ons. However, it's important to choose add-ons that suit your needs and ensure you’re not over-insured.

3. Can I buy add-on covers separately from my main policy?

No, add-on covers are designed to be purchased alongside your main car insurance policy. They are extensions to the coverage provided by the standard policy and cannot be bought independently.

4. Can I purchase car insurance add-ons online?

Yes, you can easily purchase car insurance add-ons online during the policy renewal or purchase process through your insurance provider's website or a third-party comparison platform.

5. Which type of insurance is mandatory for a bike?

In India, third-party liability insurance is mandatory for all two-wheelers under the Motor Vehicles Act. This insurance covers damages or injuries caused to third parties in the event of an accident.

6. What is add-on coverage in car insurance?

Add-on coverage in car insurance refers to additional features or extensions that can be added to a standard car insurance policy. These add-ons provide extra protection or enhanced coverage for specific situations, such as roadside assistance, engine protection, or zero depreciation.

7. What extras should I consider with car insurance?

Some useful extras to consider with car insurance include:

1. Zero depreciation cover
2. Engine and gearbox protection
3. Roadside assistance
4. No claim bonus (NCB) protection
5. Key replacement cover
6. Personal accident cover

8. What are the benefits of add-on covers for motor insurance?

Add-on covers offer several benefits, such as:

1. Enhanced protection: They offer coverage for scenarios not included in a standard policy.
2. Customization: You can tailor your policy to suit your specific needs and risk profile.
3. Financial security: Add-ons like zero depreciation help you avoid depreciation-related losses.
4. Peace of mind: With add-ons like roadside assistance, you have help when needed.