Car insurance is a must-have for every vehicle owner, but relying only on a standard policy can sometimes leave important areas uncovered. This is where insurance add-ons come in. These optional covers allow you to enhance and customise your policy, offering extra protection for situations your base plan may not cover.
A basic car insurance plan usually takes care of mandatory third-party coverage and limited own-damage protection. However, unexpected incidents like engine breakdowns, roadside emergencies, or personal accident coverage often require additional financial support. Without the right add-ons, these expenses can quickly become a burden.
By opting for insurance add-ons, you can enjoy better peace of mind and avoid out-of-pocket costs during unforeseen situations. They may seem like small extras, but in the long run, these customisations save you significant money and ensure a stress-free ownership experience.
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Why Consider Add-Ons with Your Car Insurance?
Standard car insurance policies, whether third-party or comprehensive, often have limitations. They usually cover only the basic third-party liability and own-damage protection but leave out several expenses like certain repairs, replacement parts, or specific situations that can lead to unexpected costs.
This is where insurance add-ons become valuable. They let you customise your policy to suit your needs, offering better financial protection and greater convenience. By adding these optional covers, you can prepare for different scenarios and reduce the chances of paying from your pocket.
For example, a zero depreciation add-on ensures you receive the full claim amount without deductions for part wear and tear, while a roadside assistance add-on gives you immediate help during a sudden breakdown or emergency.
Related Read: Types of Car Insurance Coverage
Must-Have Car Insurance Add-Ons
Zero Depreciation Cover
When you make a claim, insurers usually deduct depreciation, reducing the payout for replaced parts. A zero depreciation cover removes this deduction, ensuring you get the full settlement amount without factoring in wear and tear. It’s particularly beneficial for new car owners and those driving luxury or premium vehicles, where repair costs are higher.
Roadside Assistance Cover
A breakdown or emergency can leave you stranded, especially on highways or long trips. A roadside assistance cover helps by offering towing services, flat tyre replacement, fuel delivery, jump-start for a dead battery, and minor on-site repairs. This insurance add-on is extremely helpful for frequent travellers and people who often drive long distances.
Engine Protection Cover
Engine repairs can be costly, and standard car insurance doesn’t usually cover damage caused by oil leakage, water ingression, or hydrostatic lock. A protection cover fills this gap. It is highly recommended if you live in flood-prone areas or regions with heavy monsoon rains, as it safeguards the most expensive part of your car.
Consumables Cover
In an accident, small but essential parts like screws, nuts, bolts, brake fluid, engine oil, and coolant often need replacement. These are typically excluded from a basic policy. A consumables cover ensures these costs are included, adding more value to your claim when your car is undergoing repairs.
No Claim Bonus (NCB) Protection
Safe drivers can earn a No Claim Bonus as a discount on premiums. However, even one claim can cause you to lose this benefit. NCB protection keeps your bonus intact even after a claim, helping you save money on future renewals. It’s a smart choice for those who want to preserve their long-term savings.
Return to Invoice Cover
In cases of theft or total loss, the insurer usually pays the insured declared value (IDV), which is often lower than the car’s purchase price. Return to invoice cover ensures you receive the difference between the invoice value and the IDV, covering registration and road tax too. This is ideal for brand-new cars and offers peace of mind against major losses.
Key Replacement Cover
Modern vehicles often use electronic or smart keys, which can be expensive to replace. This cover pays for lost, stolen, or damaged keys, including high-end fob keys. This insurance add-on is a convenient option for those who own cars with advanced locking systems.
Passenger Cover / Personal Accident Cover
Standard policies mainly cover the driver. By adding a passenger cover, you extend accident compensation to your co-passengers. This ensures financial support for family or friends travelling with you, making it an important safety net beyond the mandatory driver cover.
Daily Allowance Cover
When your car is in the workshop after an accident, daily commuting can be a challenge. A daily allowance cover helps by providing funds for alternate travel, such as taxis or rentals, until your car is repaired. This add-on is especially useful for those who rely heavily on their car for everyday travel.
Optional Yet Useful Add-Ons
Tyre Protection Cover
Tyres are prone to damage, especially on rough roads, and repairing or replacing them can be expensive particularly if you own a car with premium alloy wheels or low-profile tyres. A tyre protection cover takes care of costs related to tyre or rim damage caused by potholes, punctures, bursts, or accidents, reducing unexpected expenses.
Personal Belongings Cover
If you regularly keep valuable items like laptops, mobile phones, or other gadgets in your car, the risk of theft or damage is always present. A personal belongings cover compensates for the loss or damage of such items when stolen from or damaged inside the insured car, offering an added layer of security and peace of mind.
Pay-As-You-Drive Add-On
For those who don’t drive frequently or have multiple cars, paying a standard annual premium can feel wasteful. A pay-as-you-drive insurance add-on helps by allowing you to pay based on your driving usage, often measured by kilometres driven. It’s an innovative, cost-effective option that suits occasional drivers or those with predictable driving patterns.
Factors to Consider Before Choosing Add-Ons
When selecting the best car insurance add-ons India, it’s important to evaluate a few key factors to get maximum value. Your driving habits play a major role; city drivers might prioritise roadside assistance, while those taking frequent highway or long trips may benefit more from zero depreciation or engine protection covers. The type of car you own also matters; new or luxury vehicles often need higher protection like return to invoice or key replacement covers compared to basic hatchbacks or older models.
Regional conditions can’t be overlooked either. If you live in a flood-prone or coastal area, an engine protection add-on becomes vital, while those in high-traffic urban areas might want consumables or passenger cover. Finally, weigh the car insurance add-ons price against the value offered. A cost-benefit analysis ensures that the premium you pay is justified by the financial protection you receive.
Common Mistakes to Avoid with Car Insurance Add-Ons
When choosing car insurance add-ons, many owners make avoidable errors that can reduce the value of their policy. One common mistake is purchasing unnecessary add-ons for older vehicles. For example, a return to invoice cover may not make sense for a car that has already depreciated heavily.
Another pitfall is overlapping coverage. Some add-ons may offer similar benefits, which could lead to paying twice for the same protection. For instance, roadside assistance and certain premium service packages may have overlapping services.
Finally, not reading the fine print can cost you. Every add-on has its own exclusions and terms, and overlooking these can lead to rejected claims. Carefully reviewing the inclusions, exclusions, and claim process ensures you only pay for what you truly need and get the right value from your policy. For more insights and smart coverage options, explore Spinny Insurance to find plans that suit your needs.
FAQs on Car Insurance Add-Ons
Q. Which car insurance add-ons are the most important?
Zero depreciation, roadside assistance, and engine protection are among the most important car insurance add-ons, as they provide maximum financial security.
Q. Is zero depreciation cover worth buying?
Yes, zero depreciation cover is highly recommended for new or luxury cars since it ensures full claim settlement without factoring in part wear and tear.
Q. How does engine protection cover help in car insurance?
Engine protection cover safeguards against damages due to water ingression, oil leakage, or hydrostatic lock, costly repairs usually not covered in basic policies.
Q. Can I add car insurance add-ons during renewal?
Yes, most insurers allow you to add or remove car insurance add-ons when renewing your policy, giving you flexibility to adjust coverage as needed.
Q. Do car insurance add-ons increase the premium a lot?
Car insurance add-ons slightly increase the premium, but they offer significant financial protection in return, reducing out-of-pocket expenses during claims.
