Everyone wants to get the best out of the money they invest. So, whether it is buying a new car or a car insurance policy for that car, getting the best deal makes the buying experience worthwhile.
Although third-party liability cover is mandatory, you can choose a comprehensive car insurance policy to get broader coverage, but even that might leave certain gaps in protection. This is where car insurance riders come into the picture. Add-ons like zero-depreciation, personal belongings, roadside assistance, etc., can help you stay adequately protected against unforeseen risks. They provide added security and take into consideration specific risks and scenarios.
Vehicle purchase document
The first document you need to collect is the original invoice of the vehicle. Check for the owner's name, chassis number, engine number and other essential details. It will help you confirm the real owner of the car or bike and also help you determine whether the vehicle is being sold for the first time. If the seller is not able to provide it, he/she should give a receipt to serve the purpose. This add-on eliminates the possibility of out-of-pocket expenses and gives you complete peace of mind as you know you will be compensated fully by the insurer. It is highly recommended for new and premium cars since it helps to decrease the expenditures involving losses.
These add-on covers or motor insurance riders can ensure 360-degree protection for your car against all contingencies.
There are many car insurance add-ons that you can opt for enhanced protection. These can be obtained by paying a nominal premium.
Engine protection cover
The engine is undoubtedly the heart of any car. Surprisingly, ordinary comprehensive car insurance policies do not offer any coverage for damages to the engine. Thus, adding an engine protection cover becomes crucial to safeguard this vital part of your car from damage. This insurance cover is beneficial for expensive cars, whose engine repair costs can be very high. It takes care of costs against damages to engine parts, differential parts and gearbox parts. A standard car insurance policy doesn’t generally cover these.
Note that there are certain exclusions under this add-on. For instance, if you have made repeated attempts to start the engine when your car is submerged in water, it’s considered a deliberate attempt to damage the engine. In this case, the insurer will reject your claim. Also, if you try driving your car with a damaged bonnet, there is a chance of lubricating oils entering the engine. In this scenario, too, your insurer can reject your claim.
Zero depreciation cover
A car’s value begins to depreciate once it exits the showroom. Over the years, it has come down significantly. In case of any insurance claim, the insurer would compensate you after factoring in the depreciated amount. However, things are different with a zero depreciation cover. It helps to protect your car against all kinds of physical damage without taking into consideration the depreciation factor.
This add-on eliminates the possibility of out-of-pocket expenses and gives you complete peace of mind as you know you will be compensated fully by the insurer. It is highly recommended for new and premium cars since it helps to decrease the expenditures involving losses.
Roadside assistance cover
Imagine going on a long drive with your family and suddenly your car breaks down in the middle of the road. There’s no mechanic or garage nearby where you can approach for help. In such a scenario, a roadside assistance cover is your most trusted ally.
Many insurance companies nowadays offer 24 X 7 emergency assistance services like refuelling, tyre change, towing, arranging for a mechanic etc. in case of sudden breakdowns. This particular add-on cover can be very helpful during emergencies when your car suddenly breaks down in the middle of a road and you require professional assistance.
Return to invoice cover
This add-on is particularly helpful for recovering financial losses when your car is damaged beyond repair. With this additional rider, you can get the original invoice value of your car in case of a total loss. Usually, you don't get the road tax and registration fees that you paid while purchasing the insurance policy. You only get the insured declared value of your car. However, the return to invoice cover gives you the full invoice value. It allows you to bridge the gap between the declared insurance value and the actual value of the car.
Personal accident cover
Sometimes, accidents can lead to disability, which prevents a person from carrying out daily tasks. During such a scenario, the cost of treatment and daily expenses can be tough to cover out of pocket. A personal accident cover enables you to protect yourself financially against such situations.
In case of a partial or permanent disability due to an accident, the insurer provides a lump sum to you or your nominee which will help you to cover the loss of income to an extent. As per the latest motor vehicle rules, it is compulsory for all the vehicle owners in India to have a minimum personal accident cover of Rs. 15 lakh to drive on the road.
Personal belongings cover
Many people travel in a car with expensive laptops, smartphones, tablets, jewellery, etc. An accident or calamity can damage these expensive gadgets and items beyond repair. Generally, such damages are excluded by standard insurance policies. However, by opting for personal belongings coverage by paying a nominal extra premium, you can protect your costly belongings from damage or theft.
However, it’s equally important to be mindful of the exclusions under this cover. You will not get covered for losses due to negligence and in scenarios where you failed to lock the doors and windows properly.
Like the above-mentioned add-on riders, many car insurance companies also offer other value-added features to improve basic coverage. Such benefits can actually reduce your financial loss to a great extent, during accidents, theft or calamities. Therefore, it’s prudent to check and include some of these add-ons to your car insurance plan to keep driving worry-free.
How to choose add-ons?
You might be tempted to include all add-ons to your policy to get complete coverage. However, that would not be a smart move; you should analyse and select the right add-ons that may be useful to you.
- Assess your driving habits and frequent travel areas: If you often drive through flood-prone regions, an engine protection cover becomes essential.
- Consider your car's value and type: For premium cars, a zero depreciation cover is highly recommended to avoid substantial out-of-pocket expenses during claims.
- Factor in your car's age: Newer cars benefit more from add-ons like return to invoice and zero depreciation covers. For older vehicles, roadside assistance might be more valuable as they are prone to breakdowns.
- Evaluate personal belongings: Consider the value of personal belongings you typically carry in your car to decide if the personal belongings coverage is worth investing in.
- Review your budget: It is very important to keep your budget in mind. Select add-ons that meet specific needs because, with every rider, your premium amount will also increase. You can balance the cost against the potential benefits by prioritising your requirements.
- Consult with your insurance provider: Understand the exact coverage and limitations of each add-on before making a decision.
- Read the fine print carefully: Each add-on comes with specific terms, conditions, and exclusions. You can avoid disagreements and complications during claim settlements if you have gone through all the minute details printed on the add-on terms.
Frequently Asked Questions
- Is it worth paying an extra premium for car insurance add-ons?
Car insurance add-ons provide complete protection against certain damages that are not covered under standard policies. The small additional premium can save you from significant financial burdens during unfortunate events.
- Can I buy add-ons at any time during my policy period?
Typically, add-ons are purchased at the time of policy issuance or renewal. However, some insurers might allow mid-term inclusion of certain riders. It's advisable that you first check the specific terms with your insurance provider.
- Do all car insurance companies offer the same add-ons?
No, the add-ons may vary among insurance companies. Although the basics remain the same, the terms, conditions, and pricing for similar riders might differ. You should compare offerings of different car insurance online before making a decision.
- Is the zero depreciation cover beneficial for my car?
While zero depreciation cover benefits all car owners, it's particularly valuable for new and premium cars where depreciation can significantly impact claim amounts. For older vehicles (beyond 5-7 years), insurers might not offer this add-on or the benefits might be limited.
- Can I claim multiple add-ons for a single incident?
Yes, you can claim multiple add-ons for a single incident if the damages your vehicle incurs are covered under those and you've paid premiums for them.
Conclusion
Add-ons give the most detailed vehicle protection that might otherwise lead to significant financial burdens. From protecting your car's engine to recovering the full invoice value in case of total loss, with the right combination of riders complementing your comprehensive car insurance policy, you can truly drive your car without any worries.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.