What Add On to Make Most Out Of Your Car Insurance?
Sometimes, comprehensive car insurance fails to cover risks leaving you with no option but to pay for the damages from your own pocket. It is for this reason; insurance companies offer add-ons, also known as riders. Read further to know how to make the most of the add-on cover.
As per the Ministry of Road, Transport, and Highways, nearly 1.5 lakh people in India lost their lives in road accidents in 2018.
According to the WHO (World Health Organisation) Global Report on Road Safety 2018, India accounts for about 11% of all accident-related deaths in the world. These figures are quite alarming, isn’t it? Hence it is paramount that you have a valid car insurance policy every time you drive on the road.
The car insurance policy ensures that you get financial protection against the damages and injuries you may suffer in an accident.
But, you must know that you can’t get 100% protection against risks by availing of mandatory third-party car insurance. Even comprehensive insurance doesn’t provide full coverage for damages. Hence, to get complete protection, you must opt for car insurance add-ons. It is the most definitive way to get protection against specific risks that are not covered under your regular policy.
You can purchase an add-on cover only if you have a comprehensive policy.
What is add-on in car insurance?
An add-on cover is an additional coverage option that you can purchase by paying extra premium. It widens the scope of your basic insurance policy and covers the risks that are not covered by your regular policy. Below listed are a few add-on options that can consider buying to make the most out of your car insurance.
1. Zero-depreciation cover
This is one of the most popular add-ons in car insurance. Several experts suggest that all car owners must have this rider. If any of your car parts gets damaged due to an accident and you need to replace the same, the insurance company does not cover the full cost. They will deduct the depreciation and pay only part compensation. However, if you have a zero-deprecation cover, you can recover the total cost for replacement of the damaged part from the insurer. Zero-depreciation cover is highly beneficial for people who own an expensive or luxury car.
2. Personal accident cover
Accidents can result in serious injuries; sometimes, it may even cause disabilities. While your regular car insurance policy will provide compensation for the damages to your vehicle, it may not cover the injuries. This is where a personal accident cover can be handy, it ensures that you get adequate protection against the physical injuries and disabilities.
3. Accessories cover
If you have customised your car and have fitted any fancy accessories, then you must know the accessories are not covered under your car insurance policy. For example, if you have modified the engine or any other mechanical setup, it will not be covered under the regular policy. But, if you have accessories add-on cover, you can get protection for your accessories too. Make sure to talk to your insurer about the limit (if any) of the value of customisation.
4. Engine protection cover
The engine is the heart of the car, and it requires special care and attention. Engine repair can be highly expensive, especially in luxury cars. The regular car insurance policy does not cover the damages to the engine. An engine protection cover can help you get compensation for the engine repairs and engine-related parts. This add-on cover in car insurance can be highly beneficial if you live in a locality, where there is a high instance of water-logging or flooding.
5. Roadside Assistance Cover
Roadside assistance cover can be useful for people who use their car regularly to travel long distances. Under this cover, the insurance companies provide round-the-clock services like towing, changing flat tyres, repairing battery-related problems, refuelling, etc. So, if you get stranded anywhere due to any flat tyre or battery breakdown, you can call the insurer and get immediate assistance.
6. Daily Cash Allowance Cover
This is another add-on insurance for car that every car owner must consider buying. Under this cover, the insurance company will offer a daily cash allowance to cover your transportation cost, if your vehicle gets damaged severely and it needs to be in the garage for several days for repair.
The daily cash allowance amount may vary from insurer to insurer, and the number of days for which the allowance may be handed could range from 7-15 days. However, remember, you can get a daily cash allowance only if you get your car repaired exclusively at the network garage.
Thus, there are several add-ons that you can purchase to widen the coverage of your car insurance policy. You should ask the insurer about the terms and conditions of different add-ons before buying it. This will help you understand the add-on cover better, and you can make an informed buying decision. Also, you must assess your needs before buying an add-on and make the most out of it.