Know about the best car insurance add-on covers to ensure Adequate coverage.
Key Points:-
- There are two kinds of insurance, third party and comprehensive
- Some of the add-on covers provided are
- Zero depreciation cover
- Return to invoice
- No claim bonus protect
- Engine protect
- Roadside assistance
- Daily allowance
- Consumables cover
- Key replacement
What is Car Insurance?
Car insurance is the best way to protect a car from any unforeseen risks. This provides coverage to the insured against any financial loss that may occur to the car.
Types of Car Insurance
Third Party Liability Car Insurance
This coverage is mandatory by law as per the Motor Vehicles Act, 1988. This cover provides coverage against any damage caused to a third party, be it life or property. Many people opt for this cover only as it mandatory, but this is not advisable, as this will not cover any loss or damage to the car.
Comprehensive Car Insurance
This is the best car insurance policy to take as this not only provides coverage to a third party but also covers the car and the insured. Any damage caused to the car due to theft, fire, accident, natural calamity and terror attack is covered in a comprehensive car insurance policy. This is the ideal cover to take along with some add-on covers, depending on the need of the insured.
Add-On Covers
There are many add-on covers provided by an insurance company.
Zero Depreciation Cover
This is one of the most popular and the most recommended add-on. With this cover, the insured does not have to pay anything from his pocket and can claim the full cost of replacing damaged car parts. At the time of a claim, the insurance company deducts a standard depreciation rate from the claim amount, thus, reducing it. With a zero depreciation cover, there is no such deduction, and the insured will get the full amount. Mostly, a car up to 3-5 years old can be eligible for this cover and in one policy period for only two claims.
Return to Invoice
With a cover of return to invoice, in the case of theft or total loss of the car, the insured gets the amount as per the original invoice. This amount payable includes the road tax and the respiration charges also and does not restrict to the Insured Declared Value (IDV).
No Claim Bonus Protect
In the year the insured does not file any claims for the car, he is eligible for a no claim bonus which is a discount on the premium amount. The NCB starts at 20% and for any consecutive claim free year increases and goes up to 50%. With an NCB protect add-on, the insured can be eligible for the discount even if there is a claim in the policy year. With exclusions, only one own damage claim is permitted in a year or it is not valid in case of a total loss claim
Engine Protect
This cover caters to the specific requirements of cars which are brand new and come in the high-end segment. Machinery breakdown or engine protect covers any damage to the engine which is not the result of an accident. Repairing engines of very expensive cars can be very high. insured residing in areas where instances of waterlogging are high can go for this cover as water can damage the engine. Any damage caused due to negligence or usual wear and tear is not covered under the insurance cover.
Roadside Assistance
This add-on cover comes in very handy at the time when the insured is stranded on the road due to a breakdown or any other problem. Some companies only offer this cover at the time of policy online. There are some insurers in the market, who have this cover as a part of the standard policy whereas the others charge for the same. Thus, it becomes important to do a car insurance comparison.
Daily Allowance
The insurance companies offer this add-on cover to the insured, to be able to hire another car if their car has gone for repairs or is stolen. The amount varies depending on the car model and the time span is usually a maximum of 10-15 days.
Insured will pay off for those items which usually not come under car insurance policy cover. Some of these items are screen washers, nut’s and bolts, bearings, engine oil etc. Usually the add-on cover is available for the first three policy years.
Comprehensive Car Insurance
This is the best car insurance policy to take as this not only provides coverage to a third party but also covers the car and the insured. Any damage caused to the car due to theft, fire, accident, natural calamity and terror attack is covered in a comprehensive car insurance policy. This is the ideal cover to take along with some add-on covers, depending on the need of the insured.
Add-On Covers
There are many add-on covers provided by an insurance company.
Zero Depreciation Cover
This is one of the most popular and the most recommended add-on. With this cover, the insured does not have to pay anything from his pocket and can claim the full cost of replacing damaged car parts. At the time of a claim, the insurance company deducts a standard depreciation rate from the claim amount, thus, reducing it. With a zero depreciation cover, there is no such deduction, and the insured will get the full amount. Mostly, a car up to 3-5 years old can be eligible for this cover and in one policy period for only two claims.
Return to Invoice
With a cover of return to invoice, in the case of theft or total loss of the car, the insured gets the amount as per the original invoice. This amount payable includes the road tax and the respiration charges also and does not restrict to the Insured Declared Value (IDV).
No Claim Bonus Protect
In the year the insured does not file any claims for the car, he is eligible for a no claim bonus which is a discount on the premium amount. The NCB starts at 20% and for any consecutive claim free year increases and goes up to 50%. With an NCB protect add-on, the insured can be eligible for the discount even if there is a claim in the policy year. With exclusions, only one own damage claim is permitted in a year or it is not valid in case of a total loss claim
Engine Protect
This cover caters to the specific requirements of cars which are brand new and come in the high-end segment. Machinery breakdown or engine protect covers any damage to the engine which is not the result of an accident. Repairing engines of very expensive cars can be very high. insured residing in areas where instances of waterlogging are high can go for this cover as water can damage the engine. Any damage caused due to negligence or usual wear and tear is not covered under the insurance cover.
Roadside Assistance
This add-on cover comes in very handy at the time when the insured is stranded on the road due to a breakdown or any other problem. Some companies only offer this cover at the time of policy online. There are some insurers in the market, who have this cover as a part of the standard policy whereas the others charge for the same. Thus, it becomes important to do a car insurance comparison.
Daily Allowance
The insurance companies offer this add-on cover to the insured, to be able to hire another car if their car has gone for repairs or is stolen. The amount varies depending on the car model and the time span is usually a maximum of 10-15 days.
Insured will pay off for those items which usually not come under car insurance policy cover. Some of these items are screen washers, nut’s and bolts, bearings, engine oil etc. Usually the add-on cover is available for the first three policy years.
