Beyond Liability: Exploring Uncommon Coverage Options in Car Insurance

When most people think about car insurance, they usually consider it as a mandatory expense to comply with legal requirements. However, car insurance can offer much more than just legal protection. Understanding the various options available can help you get full coverage car insurance, providing comprehensive protection for your vehicle and peace of mind for you. This blog is about some lesser-known inclusions and add-ons that can make your car insurance coverage more beneficial.

Understanding Car Insurance Coverage

Car insurance primarily comes in two forms: third-party and comprehensive.

1. Third-party insurance: This is the basic form of car insurance required by law. It covers damages and injuries you cause to others.
2. Comprehensive insurance: This goes beyond third-party coverage by also protecting your car against damages from accidents, natural calamities, theft, and vandalism.

While third-party insurance is necessary, opting for full comprehensive car insurance can offer extensive benefits. Let’s explore some uncommon yet valuable options that can be included in your car insurance plan.

Comprehensive Coverage: More Than Just Accidents

Comprehensive car insurance is often misunderstood as just an accident cover. However, it includes three major components:

1. Third-party Cover: Similar to third-party insurance, it covers liabilities for damages and injuries caused to others.
2. Own-damage Cover: This protects your car from damages due to accidents, natural disasters like floods or earthquakes, and man-made events like vandalism.
3. Personal Accident Cover: This covers medical expenses for injuries sustained in an accident, offering financial support for treatment to the driver and the passenger.

Towing and Roadside Assistance

A common add-on in full comprehensive car insurance is 24/7 roadside assistance. This add-on is particularly useful if your car breaks down in the middle of a journey. Here’s what it typically offers:

1. Towing Services: If your car cannot be repaired on the spot, Bajaj Allianz General Insurance Company arranges for it to be towed to the nearest garage.
2. On-spot Repairs: Minor issues like a flat tyre or a dead battery can be fixed on the spot by a technician sent by the insurance company.

Having this add-on can save you from the hassle and expense of arranging towing services yourself.

Cashless Repairs

One of the significant benefits of comprehensive car insurance is the option for cashless repairs. This means that when your car is damaged, you can take it to a network garage approved by your insurer, and the repair costs are settled directly between the garage and Bajaj Allianz General Insurance Company. Here’s how it works:

1. Network Garages: You need to ensure the garage is part of the insurer’s network.
2. Direct Settlement: The insurance company pays the garage directly, and you don’t have to bear the upfront costs.

This feature simplifies the repair process and reduces your financial burden during emergencies.

Transferable No-Claim Bonus (NCB)

If you haven’t made any claims during your policy term, you are rewarded with a no-claim bonus (NCB), which offers a discount on your premium during renewal. What many people don’t know is that this NCB is transferable. If you decide to switch insurance providers, you can transfer your accumulated NCB to the new policy, ensuring you don’t lose out on the discount.

Add-On Covers for Enhanced Protection

Beyond the standard coverage, there are several add-on covers you can opt for to further protect your car. Here are some of the most beneficial ones:

Zero Depreciation Cover

Also known as “bumper-to-bumper cover,” this add-on ensures that you get the full cost of replacing damaged car parts without considering depreciation. It is particularly useful for new cars, as parts are replaced at their current market price, reducing out-of-pocket expenses for repairs.

Consumables Cover

Standard insurance policies don’t cover consumable items like engine oil, nuts, bolts, and brake oil. With the consumables cover add-on, these items are included in the coverage, saving you from additional expenses during repairs.

Return to Invoice Cover

In the unfortunate event that your car is stolen or damaged beyond repair, the return to invoice cover ensures you receive the full invoice price of the car, including registration costs and road tax. This add-on is crucial for new car owners, as it compensates the full value of the car, protecting you from significant financial loss.

Roadside Assistance Cover

This cover extends help for various on-road emergencies:

1. Tyre Puncture: Assistance in case of a flat tyre.
2. Fuel Delivery: Emergency fuel delivery if you run out of fuel.
3. Battery Issues: Help with a dead battery.

This add-on ensures you’re not stranded during long trips or daily commutes.

Engine and Gearbox Protection Cover

Standard policies often exclude engine and gearbox damage unless caused by an accident. This add-on covers damages to these critical parts, protecting you from high repair costs due to incidents like water ingress or oil leaks.

Daily Conveyance Benefit

If your car is in the garage for repairs, the daily conveyance benefit covers your commuting expenses. You may receive an allowance or cab service coupons, ensuring your daily routine isn’t disrupted due to car repairs.

Tyre Protection Cover

Tyres undergo regular wear and tear and are prone to damage. This add-on covers the cost of repairing or replacing damaged tyres, which is otherwise not included in standard policies.

Key and Lock Protect Cover

Losing your car keys can be both frustrating and expensive. The key and lock protection cover pays for the cost of replacing lost or stolen keys and locks, relieving you of this unexpected expense.

Loss of Personal Belongings Cover

Cars often contain valuable personal belongings like laptops, phones, and documents. In case of theft or damage, this add-on provides compensation for the loss of personal items, which are typically not covered by standard car insurance.

Pay As You Drive Cover

A newer addition to the insurance market, this cover allows you to save on premiums based on how much you drive. If you use your car less frequently, you can benefit from lower premiums, making this an economical choice for infrequent drivers. When buying or renewing car insurance, it’s essential to look beyond the basic legal requirements and consider the full range of coverage options available. Full comprehensive car insurance with the right add-ons can provide extensive protection, ensuring your car is covered in various scenarios beyond just accidents. By understanding and opting for these lesser-known inclusions, you can customise your car insurance policy to fit your specific needs and circumstances, providing greater peace of mind and financial protection. So, next time you’re shopping for car insurance, think beyond liability and explore the full potential of your coverage options.   *Standard T&C Apply *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