If you’ve finally taken the leap and bought that car you’ve been talking so much about, congratulations! While we wouldn’t want to kill the joy, it needs to be said that with a new car comes a new set of responsibilities.
One of the most important of these responsibilities is to get a car insurance. Insurance is your new car’s shield against unexpected events and covers you against thefts, and financial losses caused by accidents. In India, driving a car, new or old without a valid car insurance is illegal and as per the Motor Vehicles Act 1988, it is mandatory to have at least a Third-Party insurance.
However, if you opt for an Own Damage or a Comprehensive car insurance, you will get the option to choose from a variety of add-on covers to get extra protection.
What is an Add-On Cover in Car Insurance?
Add-ons are additional coverage which you can choose to include in your car insurance policy to maximize your benefits and get more coverage. Add-ons come at an extra cost to your premium, but they also offer a personalized insurance cover that is sure to give you peace of mind.
Take it this way, even if you’re more than happy with your Comprehensive Car Insurance for your beloved car, just to keep yourself free of any unpleasant surprises in the future, you can pick and choose from a number of additional benefits that can be ‘Added on’ to your basic comprehensive policy to instantly transform it to something that is customized just for you!
Choosing the right Add-Ons
Since add-ons can increase your premium, it is really important that you pick the right add-ons that are perfect just for you. As you have the liberty to pick and choose only the add-ons that you want, you can have as many or as few of them as you want.
Just remember that when it comes to a new car, when you buy your car insurance offered by dealers, it may save time and be convenient, but you often will not get the freedom to choose from a wide range of add-ons that can give your car better coverage. Buying a car insurance online gives you the benefit of customizing your plan with lots of different add-ons to choose from.
If you’re not sure what add-ns to pick for your new car, here are some add-on covers you could consider:
- No Claim Bonus Protection Cover
A No Claim Bonus (or NCB) is a sort of discount that insurance companies offer on the premium of your car insurance for those policy holders who have not made any claims during the previous year. But, getting a No Claim Bonus Protection add-on cover can keep your NCB intact even if you make a claim, and so your premium will continue to remain low when you renew your policy.
- Roadside Assistance Cover
Roadside Assistance (also known as Breakdown Assistance) is another important add-on covers. Basically, it helps you out in situations where you need help on the road with your car, like if you face a breakdown of your vehicle on the road, due to an accident, flat tires, or a malfunctioning battery.
You can get a whole lot of benefits like getting your wheels fixed on the spot, to towing or taxi service to help you reach your destination.
- Passenger Cover
Even if you’re driving your own car, you’re likely to have passengers in the car with you. And, they just as liable to accidental injury as you are. So, just like you will be covered by your insurance, they also need proper financial protection for medical expenses in the case of an unfortunate accident.
A Passenger Cover ensures the protection of your family and loved ones. For, god forbid, you meet with an accident where you and your near and dear are injured, this cover will ensure that, apart from you, your beloved are covered too and will receive all the necessary financial support till they recuperate.
- Zero Depreciation Cover
This one is an add-on for all seasons. Essentially, it ensures that your insurance company will not consider the depreciation of your vehicle and its parts. Usually, your vehicle and its parts can lose value over time because of its wear and tear, and this amount is usually deducted from any claim, and you (the policyholder) will have to pay for this yourself.
But, if you get a Zero Depreciation add-on, your insurance will cover this cost of repair and replacement costs of rubber, plastic and fiber components.
- Return to Invoice cover
Any driver’s worst nightmare is when your car is destroyed beyond repair! With a regular insurance cover, the maximum claim you can make is restricted to your car’s Insured Declared Value. Because of the depreciation that happens over time, the IDV is lesser than the invoice value of your car because of depreciation that happens over years.
However, with a Return to Invoice cover (or RTI), you can cover the gap between the IDV and the invoice value of the car and get a refund of the complete value/amount mentioned on the invoice from your insurance company.
So, while these add-ons come at a slight addition to your premium over and above your basic insurance policy, if you choose the right covers it’s worth every penny. At the end of the day, these add on covers will help you drive your car around with complete peace of mind!