A Guide to Understanding Car Insurance Add-ons and When They Matter?

Every vehicle owner in India must insure their car with a third-party vehicle insurance policy according to the Motor Vehicles Act 1988. However, this policy only covers the third-party liabilities caused by your vehicle. 

Thus, vehicle owners prefer comprehensive insurance for car as it provides extensive coverage for the insured vehicle, the owner, and third-party liabilities. Moreover, a comprehensive insurance policy also offers add-ons to extend your insurance benefits.

Here’s more on it!

Why Do You Need Add-ons with Your Car Insurance Policy?

Add-ons are additional coverage with your comprehensive vehicle insurance policy. You can avail of these benefits by paying an extra amount with your monthly insurance premium. The best part is that you can select the add-ons based on your driving needs. 

It covers various aspects not included in your base policy plan. Choose your add-ons wisely to avoid burdening yourself with unnecessary expenses. 

What are the Different Types of Car Insurance Add-ons?

Here are some of the add-ons that a policyholder can buy with their comprehensive car insurance policy to extend insurance coverage:

• Zero Depreciation Cover

A zero-depreciation car insurance provides coverage against your vehicle and its components. It is also called a bumper-to-bumper cover, as it compensates for the full price of the vehicle’s damaged components. 

In most cases, insurers offer zero-depreciation coverage for cars below five years of age. This add-on provides peace of mind to the policyholders, who are financially covered to replace damaged car components.

• Consumables Cover

Car consumables include engine oil, power steering oil, gearbox oil, brake oil, and tiny parts such as bolts, nuts, and screws. When a car is repaired after an accident, these consumables usually have to be replaced. Common car insurance policies, particularly third-party policies, typically do not include the cost of these items. 

Consequently, car owners will have to pay for it themselves. With a consumable cover as an add-on to your insurance, you can ensure that such costs are covered after accident-related repairs.

• Return to Invoice Cover

This add-on compensates the full value of your car in case it is stolen or damaged beyond repair. A comprehensive policy does not cover this, and you will consider your vehicle unusable if it becomes irreparable after an accident. However, with this add-on, you can recover the entire cost of your car without facing any financial loss.

• Roadside Assistance Cover

Roadside assistance cover is a valuable add-on for car insurance, especially during long road trips or travel to unfamiliar places. Despite thorough vehicle checks, unexpected issues like a flat tyre or oil leak can occur. 

Roadside assistance tows your car during a breakdown and offers services like fuel delivery, flat tyre repair, etc. This cover provides you with peace of mind during emergencies.

• Engine and Gearbox Protection Cover

Car insurance policies do not cover any damage caused to the engine or gearbox of your vehicle. However, these components form a significant part of your vehicle’s price. Thus, any damage to these components can drain you financially. 

Buying an engine and gear protect add-on helps cover the replacement of these components, offering your financial stability and peace of mind.

• Daily Conveyance Benefit

When your car is being repaired after an accident, you may need to spend extra money on your daily commute since your vehicle is unavailable. This add-on helps cover these additional commuting costs. 

Under this add-on, you can use your insurance provider’s cash allowance or cab service vouchers to reduce your travelling expenses until your car is back after the repair.

• Tyre Protection Cover

Tyres are a crucial component of your car that undergoes regular wear and tear. Thus, tyres are susceptible to damage during an accident. A comprehensive car insurance policy does not cover the cost of tyre repair or replacement unless you purchase this add-on. 

• Key and Lock Protect Cover

Losing car keys can be a common problem. In most cases, people find them after a brief search. However, if the keys are truly lost, you might need to replace your car’s locks, which can be costly. Instead of bearing this expense, you can opt for key and lock protection coverage for your car insurance. 

This add-on helps cover the cost of replacing lost keys or locks, saving you money and hassle. Many insurance providers offer this option when purchasing car insurance online, allowing you to protect yourself against such unexpected situations.

How to Choose the Right Car Insurance Add-ons?

Add-ons or riders may seem lucrative and beneficial, but most car owners end up buying unnecessary add-ons. This can increase your monthly premium without any significant savings or coverage during an accident. 

Thus, you must consider the following things while selecting add-ons with your comprehensive car insurance:

• Check for Hidden Costs

You may get some add-ons at a pocket-friendly deal without being aware that you need to pay additional expenses to make them available during a claim. Thus, while purchasing any add-on, consider reading the policy terms carefully.

• Purchase Add-ons as Per Your Need

Don’t get overwhelmed by several attractive add-ons. Always analyse your specific needs and select add-ons as per your requirements and risk profile. Adding unnecessary add-ons will increase your premium amount, causing a financial burden.

• Extensive Coverage

Add-ons expand your insurance protection to cover a wide range of situations, such as costly engine repairs, medical expenses after an accident, or emergency roadside assistance. This means you can safeguard yourself against more risks than with a basic policy.

• Personalised Protection

Add-on covers let you tailor your car insurance plan to suit your specific needs and driving habits. You can select options that best match how and where you use your vehicle.

Most insurers make it easy to include add-ons with your comprehensive policy, either when you first buy your policy or at the time of renewal. Keep an eye on these features so that you don’t miss the necessary ones and don’t add excessive add-ons.

Thus, add-ons act as an additional safety measure that comes with comprehensive car insurance. They offer several additional benefits that your basic plan does not cover. However, to make informed decisions, it is always advised to understand the coverage costs and analyse your driving needs.