Sometimes comprehensive four-wheeler insurance on its own isn’t enough to cover the damages caused to your vehicle. This makes you vulnerable to financial burdens in the event of major accidents, leaving you to pay for certain repairs out of pocket.
It is for this reason that insurance providers offer add-ons with their comprehensive plans. These extended the base coverage of your 4-wheeler car insurance, allowing you to get coverage for specific damages your vehicle may be prone to due to your location.
Read on to learn more about what an add-on in car insurance is and the best add-ons you can opt for to get the best value out of your comprehensive plans on your next purchase.
What is Add-On Coverage in Car Insurance?
An add-on in car insurance is an additional coverage option that is available for comprehensive four-wheeler insurance plans. These can be opted for when you buy a new car insurance policy or while renewing your plan.
For example, say you just bought a new Volkswagen GTI and live in an area prone to floods. Most basic comprehensive plans only tend to offer Own Damage Protection and Third-Party Liability coverage.
So getting an Engine Protection (EP) Cover along with your Volkswagen GTI insurance will safeguard your car’s engine and will cover the repair costs your engine sustains due to any water damage during floods.
Simply put, add-ons increase the base coverage offered by your four-wheeler insurance by offering coverage for specific damages or circumstances. However, they do increase your premium amount, so the more add-ons you get, the higher your premium payable amount will be.
List of the Best Add-Ons for Car Insurance
As stated, add-on insurance for cars comes with extra premium payments, so while getting that extra coverage is important, getting the right add-on for your car is also crucial. Moreover, the coverage for each add-on will vary across insurers, so always remember to ask your insurer for their terms and conditions before buying them.
Here are some notable add-on covers for 4-wheeler car insurance that most policyholders opt for when they buy car insurance.
● Zero-Depreciation Cover
A zero depreciation cover is one of the most popular add-ons for car insurance owners. It is highly recommended for people that own expensive or luxury cars.
When your car’s parts get damaged during an accident, your insurer does not pay the total cost as they deduct the parts’ depreciation cost and only pay the compensation amount. However, with this cover, you are reimbursed the total cost of replacing the damaged parts from your insurer.
● No Claim Bonus Protection Cover
A No Claim Bonus on your four-wheeler insurance makes you eligible for discounts on your insurance premium during renewal. So this cover is recommended if you want to safeguard your No Claims Bonus discount while still having the option to file claims for major repairs.
This cover is available for cars not older than 3 years.
● Personal Accident Cover
Accidents can result in personal injury or, in some cases, even disability. While your comprehensive four-wheeler insurance will cover the damages to your vehicle, without this cover, you will have to pay out of pocket to treat your injuries.
A personal accident cover will reimburse your medical expenses for injuries acquired during accidents.
● Return to Invoice Cover
In cases of a total loss, your insurer reimburses you the IDV amount declared on the policy purchase. However, your IDV amount decreases as your car depreciates yearly.
With a Return to Invoice Cover, the insurer compensates the total invoice price of your vehicle when you suffer a total loss or if your vehicle acquires more than 75% damages to its body during an accident.
● Engine Protection Cover
This add-on coverage in car insurance covers repair costs for electrical or mechanical breakdowns of the engine due to an oil spill or water ingression (water entering the engine).
● Roadside Assistance Cover
This add-on provides services like towing to the nearest garage, on-site repairs, changing flat tyres, fuel delivery, assistance in case of loss of keys, etc., when your car breaks down outside of city limits.
● Daily Cash Allowance Cover
This add-on for 4-wheeler car insurance provides a daily cash allowance to cover your transportation cost in cases where your car gets severely damaged during accidents and will take several days to repair.
The number of days covered will vary across insurers with an average of 7 – 15 days, and is available only if you get your car repaired at a network garage.
Conclusion
Add-ons in car insurance are an excellent way to extend your policy’s base coverage. They can significantly increase your premium, so getting the right add-ons that fit your requirements is essential.
Most insurers, like Tata AIG, offer a car insurance premium calculator on their website to check your premium amount after including add-ons in your four-wheeler insurance plan. It is a free online tool that estimates the premium amount you can expect to pay before purchase.