Car Insurance Add On Covers: Types & Benefits

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 of your car against all contingencies

A car is an essential asset, and it must be protected under a reliable insurance plan. Third-party motor insurance, which is mandatory by law, is no longer considered ‘sufficient’ to compensate for the losses arising due to accidents. While a comprehensive car insurance policy covers your car and third party losses too, having add-ons further fortify the coverage.

There are many car insurance add-ons that you can opt for by paying a nominal premium. This article will cover such add-on covers, which you can buy to cover losses due to untoward incidents. Let’s get started.

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 the damages. 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 gear box 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 are chances 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 comes 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 damages without taking into consideration the depreciation factor.

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.

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 to recover 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 which 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, 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 cover by paying a nominal extra premium, you can protect your costly belongings from damages 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.