Car Insurance Value Added Services: A Comprehensive Guide

Many people believe that having a car insurance plan is simply about receiving coverage against accidents. While protection against accidents is a very important and valid reason for having car insurance, the benefits of car insurance go beyond basic coverage. The kind of coverage you have also depends on the policy you have opted for. As per the Motor Vehicles Act of 1988, it is mandatory to have third-party insurance coverage if you are driving your vehicle on Indian roads. Whether you are buying car insurance online or offline, you can bump up your coverage with a comprehensive plan. Along with coverage for certain natural and manmade disasters, a comprehensive plan also allows you to opt for value-added services or add-ons, as they are commonly called nowadays. * Let us take a detailed look at the add-ons that you can avail with your car insurance policy.

What Are the Types of Car Insurance Value Added Services/ Add-ons?

You should note that car insurance add-on types and their coverage scope can differ from insurer to insurer. With Bajaj Allianz General Insurance Company’s car insurance policy, some of the add-ons you can avail are:

Zero depreciation add-on

In case you didn’t know, depreciation refers to the loss in the value of your car due to regular wear and tear. The depreciation rates for different types of parts have been set by the IRDAI as per the age of the car. # When you raise a claim under your car insurance plan, the insurance company cuts the depreciation rate from the claim amount. If you opt for zero dep car insurance, you can get away with this depreciation deduction and receive the full claim amount, subject to other applicable out-of-pocket expenses. This add-on is ideal, and in most cases, only applicable, for cars less than 5 years old. * Claims are subject to terms and conditions set forth under car insurance policy.

Engine Protection Add-on

In most cases, damage to the engine is not covered under regular motor insurance policies. This can be quite unfortunate since the engine is one of the, if not the, most important parts of any motor vehicle. Hence, ensuring that it receives utmost care and repair after damage is important. You can make sure of the same by opting for the engine protector add-on. * It provides coverage against damage to the engine and engine parts, differential parts, and the gearbox and gear parts. The engine protection cover can protect the engine against water ingression, oil leakage, hydrostatic lock, and more, subject to the terms and conditions listed in the policy document. * Claims are subject to terms and conditions set forth under car insurance policy.

Consumables expenses add-on

When you get your car serviced or repaired post-accident, there are a host of expenses you need to tackle. Many of the expenses are related to small parts, and therefore, may not be covered by regular car insurance plans. However, in case of a major repair or frequent repairs, these expenses can add up to a lot. The consumables expenses add-on can help in this situation by covering costs for consumables if they are required such as engine oil, braking oil, coolant, gearbox oil, and more, as listed in the policy document. * Claims are subject to terms and conditions set forth under car insurance policy.

Roadside assistance or 24/7 spot assistance add-on

Have you ever worried about your car breaking down and you being stuck in the middle of nowhere? With the roadside assistance add-on (also called 24/7 spot assistance), you never have to worry about these situations. If ever such a situation arises, you need to reach out to your insurance company and help will be at hand. Whether you need to get your tyre changed or have your car’s engine checked by an expert, you can count on your insurance company to be there to help you. The roadside assistance service can be availed across India. * Claims are subject to terms and conditions set forth under car insurance policy.

Personal baggage add-on

If you are the type of person to keep important items and baggage in the car while you manage work outside the car, then this is an ideal add-on for you. If any damage is incurred by the baggage during such situations or it if it gets lost as a result of theft or burglary, then you can claim reimbursement for the financial loss. You can avail of this add-on while buying car insurance online or offline. The add-on may not bring back the lost baggage, but it can at least relieve you of the financial losses incurred by you. *Claims are subject to terms and conditions set forth under car insurance policy.

Conclusion

To get an estimate of what your premium could be after the addition of these add-ons, you can use a car insurance calculator. Note that the add-ons mentioned here (and any other add-ons you might opt for) have their set of terms and conditions, as well as exclusions. We recommend you read through the wordings of your policy document to know the full scope of each add-on you have opted for. * 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.