Insurance add-on covers: Which ones do you have on your cars and why?

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.

BHPian Omkar recently shared this with other enthusiasts.

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.

Check out BHPian comments for more insights and information.