[Omkar]

Many people don’t think about car insurance until they’ve met with an accident or get pulled over by cops for documents. While a lot of people ignore insurance, it can prove to be an extremely important tool to save some big money in unfortunate events like accidents, fire, theft, natural calamity, etc.


We all know that third-party insurance coverage is mandatory by law and covers any damage to a third party. This includes death, injury or property damage of the third party due to an accident with your car. Comprehensive coverage includes third-party cover and personal cover. A comprehensive policy covers a few things and doesn’t include certain damages like breakdowns, wear and tear, hydrostatic lock, etc.

Every insurance company offers add-ons to enhance the coverage of the car insurance policy. There’s an additional premium amount to get these add-ons. Listing out some of the most common insurance add-on covers.

• Zero Depreciation Cover: Depreciation on plastic parts is 50% and the same is on metal parts as per the age of the car. Even when painting a damaged panel, the paint material is considered plastic and depreciation is applied to it. With the Zero Depreciation cover, you will be paid the full value of the parts without any depreciation. This is extremely helpful with parts like headlights, tail-lights, bumpers, etc. which are prone to getting damaged in an accident. Do note that the zero depreciation cover is usually not applicable for cars that are older than 5 years.

• Engine Gearbox Protection Cover: This is one cover that is somewhat necessary in areas like Mumbai where there is waterlogging during the monsoon. Driving through a waterlogged area can cause water to enter the engine and damage the internals. This is known as a hydrostatic lock. This kind of damage isn’t covered by your regular Comprehensive policy and you will need Engine Gearbox Protection add-on cover for claiming repairs or replacement. Just like zero depreciation cover, this engine protection cover is not applicable for cars that are older than 5 years.


• Tyre Protect Cover: In a comprehensive policy, any damage to the tyres due to impact during an accident is covered. However, the tyres are not covered in case of a puncture, a bulge, a cut or a tyre burst. You will have to pay for it from your pocket. This is where the Tyre Protect Cover comes into play.

• Car Accessories Cover: This add-on cover is for car owners who have customized their cars. There are two broad categories in which you will have to declare the accessories on your car – a. electrical accessories (music system, speakers, headlights, etc.) and b. non-electrical accessories (alloy wheels, bumpers, seat covers, etc.).

• EV Add-on Cover: Given the number of electric cars on our roads, EV-specific add-ons were just a matter of time. Some insurance companies cover the vehicle’s battery due to water ingress, short circuit or external impact. Moreover, the electric charging cable is also covered for accidental damage or theft. Some insurance providers also cover the charging point installed at home and any damage that may occur while charging. There’s also mobile charging assistance if you run out of battery somewhere.


• Consumables Cover: Lubricants, engine oil, screws, nuts, filters etc. are consumables and not covered in your comprehensive policy. This will add to a considerable sum in case of a major accident and hence the consumables cover helps you save some money here.

• Key Loss Cover: Some of the keys of modern cars have various features and are loaded with tech. Ergo, they are quite expensive as well. The cost of replacing the car keys in case you lose them or they get stolen or damaged will be taken care of with this cover. This even covers the cost of replacing the lock if needed.


• Passenger Assistance Cover: In case of an accident, the medical expenses incurred by the passengers of the car are covered in this add-on. This includes hospitalization expenses, treatment expenses and ambulance fees as well. There’s also compensation in case of the death or disability caused to a passenger.

• Return To Invoice Cover: This is a good cover to have on your new car purchase. In case of theft or total loss damage of your new car, this add-on helps you claim the complete amount mentioned in your invoice. This includes car registration and road tax as well. You can avail of this add-on for the first 3 years.


• Roadside Assistance Cover: Most of the people might be familiar with this. Insurance companies provide this add-on service to rescue you when your car breaks down. This includes minor repairs, towing service, jumpstart, flat tyre change, spare keys, etc. Note that this is a service and doesn’t get considered as a claim. Also, do read the finer details of this service as there is usually a limitation on the towing distance.

• Protection Of NCB Cover: NCB or no claim bonus adds up as a percentage on your insurance policy. In simple words, if you don’t make any claim on your insurance policy, the company gives you a bonus on your renewal. You can accumulate up to 50 % NCB after 5 years of not registering a claim on your policy. When you make a claim, you will lose all the accumulated NCB. If you don’t want that to happen, the NCB cover add-on will help protect you for the first 2 claims. If more than 2 claims are made, then the NCB will drop to 0%.

• Loss of Personal Belongings Cover: With this add-on, the insurer will cover the losses due to the theft or damage of your personal belongings from the insured car. Helps if you carry some expensive items regularly like a laptop or mobile phone. Make sure that you read the fine print for inclusions and exclusions.


• Daily Allowance Cover: Sometimes the repair time for accidental damages can take a long time. With this add-on, the insurance company will provide a daily allowance of a fixed sum to the insured while their car is in the workshop getting repaired. The amount varies with different insurance providers. Do check the exact list of inclusions and exclusions before opting for this add-on cover.

Do share which add-on covers you have on your car / cars and the reason why you chose those.

[Omkar]

Thread moved out from the Assembly Line.

[libranof1987]

It's crazy how many add-on covers are now available; I feel there's a few new ones every time I have to renew the policy on one of my vehicles!

- As a rule of thumb, I always take Zero-dep as long as it is available (I'd taken it even on the 7th year on the City)
- Same with RTI, which is a rather new add-on
- For the time we stayed in NCR, we took the engine-protect add-on
- RSA: for my bike, I had a OEM-issued RSA cover (vs. one from the insurance policy). I do think this is a helpful add-on, that I've often not enrolled for on my cars

[ghodlur]

The 3 major add on covers which every car should have for the first 3 years of ownership are:
1. Zero dep
2. Return to Invoice
3. Key loss cover
4. NCB protection cover if you have an NCB of 40% or more.

After three years it can be:
1. Zero dep
2. Key loss cover

If one is driving in water logged prone areas then engine protect should be included from first year of ownership.

Before buying the add on covers it is very important to read the terms and conditions of these covers as they vary from Insurer to Insurer.

[SkodaWings]

With My 2021 Hyundai Creta MPI
I had taken below insurance add ons -

1. Zero depreciation
2. Return to Invoice
3. Engine protection
4. Consumables
5. Key replacement

With my 2024 Skoda Slavia 1.0 AT
I had to settle with below add-ons for a better deal.

1. Zero depreciation
2. Engine protection
3. Consumables
4. 24/7 RSA

Skoda was okay with me not taking insurance from their showroom, where as Hyundai did otherwise only because they are doing good numbers.

With Hyundai Creta I was suffocating. Slavia AT has given me eternal freedom.

[gischethans]

I just renewed my insurance today and it appears that major insurers like ICICI Lombard do not offer NCB protection coverage. While I found references to such a cover on the websites of TATA AIG and IFFCO TOKIO, their agents and my car dealer's insurance desk said no such cover exists. I checked on IFFCO TOKIO by providing my details and no such add-on was available for selection.

For that matter, I had a hard time explaining how my NCB was at 35% for a one-year-old car to all of them. While the IFFCO agent finally said, I could transfer the NCB later by providing a certificate, the AIG agent who was from an agency did not believe me at all. I had transferred the NCB at 25% from my old car. As I finally ended up renewing with ICICI, I got the NCB as they are my current insurer.

Now coming to some real experience, for my Alto, I had both key protection and tyre protect covers from Go Digit. I suffered a bent rim (Damaged Steel Rim | Repair or replace?) and was told that the RIM had to break for tyre protect to be effective -

We have reviewed the claim and the damages to the rim can be covered under the tyre protect if the rim is cracked or broken, damages like soft dents and bends are not payable. However, when a claim is settled under Tyre Protect add on, then NCB would not be impacted.

Regarding key protect, I had replaced the transmitter in the Alto's key and expected a reimbursement but I was orally told that both the keys will have to be lost for it to be effective. Further, the compulsory deductible would be applicable in those cases. In my case, the transmitter had cost ~₹800.

there is a compulsory deductible on the policy which is Rs. 1000. We have also noted that you have replaced the key due to the failure of the transmitter module. Usage related issue is not covered under the policy.

[manincar]

For my Seltos GTX+, I have taken Zero Dep, Engine protect, consumables and key protect. Have opted for RSA offered by Kia.
Have experienced the benefits of both Zero dep and RSA.
Driving in Ahmedabad unless we are as vigilant as BSF, There is a high probability of attack from 2 wheelers from all sides . On one occasion a 2 wheeler driving in wrong side damaged my front bumper and headlight. Got the vehicle repaired within a week with zero fuss.

When my car suddenly stopped out of no where, RSA guy in a 2 wheeler reached out within 1 hr. After getting assurance that car will be transported using flat bed, handed over the keys.

[Rodie09]

Good timing. I am in the market right now to renew my Safari's insurance getting into the second year. My considerations included Zero dep, engine protect, RSA, RTI and consumables cover.

My thoughts on these-

Pretty much decided on Zero dep, RSA, Engine protection (I live in rainy Pune).

Little undecided on RTI - its going to cost about 4K to cover the difference of 28lacs price vs IDV of 20 lacs now. Looks worth the additional cover of more than 8 lacs I am getting. However, probability is very low for this cover hence the dilemma - car is mostly parked in office and home. Yeah, but you never know. So, I may go for it.

I am inclined to not take consumables cover - This may not be a lot actually even in a major accident. Say 15-20K in worst case? The cover is costing 3K and it does not make sense for just a 15-20 k security. Also, the probability of such an event is relatively low. I am likely to ditch it.

Any suggestions if I am completely off the usual approach on these covers?

[streetfighter]

For my C5 Aircross, I have added Rodent/Rat damage protection. My earlier car, Fiesta, had some wiring damage by rats; it didn't cost a bomb to fix them. But with this car (the Citroen), I did not want to take chances and have got myself covered.

The policy document says:
RODENT DAMAGE
In the event of loss or damage to electric wiring, rubber, plastic, leather, rexine or any non-metal parts of the Insured Vehicle due to rodent bite, We will indemnify You against the reasonable cost of repair or replacement of damaged parts or clean-up of the Insured Vehicle.

[Sedate]

Insurance premium per year is now around 5%-6% of the car value. Does it really make sense to purchase the own damage insurance and especially these add-on ones?

[Rodie09]

Originally Posted by Sedate

Insurance premium per year is now around 5%-6% of the car value. Does it really make sense to purchase the own damage insurance and especially these add-on ones?

I think it is more around 2.5-3% - I am saying this based on quotes I am getting to cover my Safari at IDV of 20lacs and RTI at 28 lacs. I am taking all the covers I mentioned earlier and this is with zero NCB and 3rd party included which itself is 9K+ for the big engines size. So, it should be lesser than that with NCB and sub 1.5 ltr engines. 5-6% sounds much inflated.

[abheeshek]

I usually take Zero Depreciation Cover, Tyre Protect Cover, Engine protect, RSA, Return To Invoice Cover, and Consumables Cover for all my vehicles. Also for my recently purchased MG Comet i have taken EV Add-on Cover as well which covers the EV battery due to water ingress.

[Aviator_guy]

Learnt from past experience, here is what I have opted for :
1. For 2w - Apart from zero dep, I added RSA this year during renewal as the dealer provided insurance for my new 2w didn't include it. I learnt it hard way when I had to tow my 2w to the service center when it refused to start in my parking. Company RSA asked for 2k to tow it mere 2km. Luckily Porter app came in handy.

2. For 4w- I misplaced one key of my new Creta and didn't have key protect cover. As per service center, key replacement could have set me back by few thousand Rs (I think they quoted 5-6k). Luckily found the key but decided to add this cover during renewal. Also added rodent cover as some residents of my apartment have reported wire damage due to rodent bites. Apart from that I always go for Zero dep, RTI and Engine protect for as long as available.

[Humane India]

Hello Everyone

I just want to make Car Owners aware about the essential add on covers we need to take during buying an insurance policy for any Vehicle

1 Zero/Nil Depreciation Cover - Compulsory - No depreciation on repair parts

2 Return To Invoice - Compulsory - In case of Theft or Fire

3 Road Side Assistance - Compulsory - Assistance during breakdown
(Buy it even if provided by the OEM)

4 Consumables - Compulsory - Payment for petty items during a repair

5 Rat Cover - Compulsory - Compulsory - Rat Bite coverage
(Many companies have it inbuilt in the comprehensive coverage)

6 Rim & Tyre Protect - Optional - Compensation for tyre or rim damage without
invoking the zero depreciation component

7 Key Protect - Compulsory - Reimbursement for loss of car keys

8 Loss Of Personal Belongings - Optional - Reimbursement for loss of personal items
from inside the car during theft

9 NCB Protector - Optional - In case of only 1 claim per year, the discount for the
next year will not get nil on renewal

But the most important coverage EVERY EV owner must purchase is :-

" BATTERY & MOTOR PROTECT FOR AN EV & ENGINE PROTECT FOR ICE "

This cover will save you lakhs of rupees in case of non accidental claim upon damage to the battery or the motor at the time of floods, internal sparking or fire in case of an EV and engine and gearbox parts due to consequential damage due to water ingression

The premium for such an additional add on cover will range between 2-6k depending upon company to company BUT is crucial for tropical country such as India where drainage is not world class

The reason for writing this post is that has been observed that many car buyers miss out on opting for these important add on covers due to lack of knowledge OR the insurance agents try to missell for their increasing their own margins

If you want to know more about these covers before buying insurance for a new car or renewing an insurance policy for an existing car, feel free to DM me here or connect on Telegram - shaggy7979

Happy Motoring !!

[dgindia]

It is recommended to take coverage on maximum riders for peace of mind.

Following should be covered under motor insurance coverage
1. Zero Depreciation
2. Return to Invoice
3. Engine Protection
Insurance company do not provide these coverage for the entire life of car. Generally after few years (varies from company to company) many of these coverage is not available as they might be wary of more claims on older vehicles. But as long they are available, they should always be included in insurance coverage of your beloved car.

May also include optional riders like:
1. Consumables Add-on Cover
2. Roadside Assistance Cover
3. Daily Allowance Cover
4. Passenger Cover
5. Tyre Protect Cover
6. Key Replacement Cover
7. Loss of Personal Belonging Cover

I prefer to include all riders available at that point of time.

In western countries, insurance premium is also dependent upon age, driving habits, traffic tickets or challan issued by authorities.
Trivia: It is difficult get Uber / Lyft / other taxi during during weekend evenings for everyone; as people leave their own car behind while heading to pubs.

Gradually we are also moving in that direction, when insurance premium will be determined by driving habits.