What Are Motor Insurance Add-On Covers?

Add-on covers or riders can be purchased by policyholders after paying a certain amount of premium. Such add-on covers are not always included in comprehensive policies. Some of the popular forms of add-on coverage for motor vehicle insurance include:

  • Roadside assistance cover.

  • Electronic and electrical circuit cover.

  • No claim bonus cover.

  • Zero depreciation cover.

  • Key replacement cover.

Roadside Assistance Cover

Roadside assistance cover is an excellent option in case of emergencies like battery issues, flat tyres, or running on an empty fuel tank. The policyholder can call the insurance company which will provide logistical support by providing pick up and repair of the vehicle.

This is particularly helpful when policyholders are traveling long-distance and are unable to get any help in a remote location. Other benefits extended by this rider include fuel assistance, accommodation assistance, and even proving a taxi to the policyholder to reach the destination.

Electronic and Electrical Circuit Cover

Most insurance policies do not cover electronic and electrical circuit covers, but riders are available. For instance, a comprehensive vehicle insurance plan need not necessarily cover electrical breakdowns that are non-accidental in nature, but adding this rider covers policyholders to seek a claim in such scenarios.

This rider is recommended for expensive motor vehicles as the repair costs are very high as well. Additionally, it is recommended by vehicles that are used off-road as well.

No Claim Bonus Cover

No claim bonus covers are popularly referred to as NCB covers. Basically, this rider is a reward that policyholders can claim if they have not filed any claims through the entire policy period, which is made available in the form of a significant cut in the premium to be paid the following year.

It must be noted that in the year that the policyholder received the NCB, he or she stands to lose a part of the bonus for the year. As a result, the amount of the discounted premium will be raised.

Zero Depreciation Cover

Another type of add-on cover that is quite popular is zero depreciation cover. The policy ensures that policyholders receive the entire amount of the parts replaced due to the accident.

However, policyholders should make a note that this rider is applicable only for vehicles that are less than ten years in use from the time of purchase.

Key Replacement Cover

Every vehicle owner at one point in time or the other would have misplaced their keys. For this reason, this add-on cover provides reimbursement in case the key is misplaced and a replacement has to be made.

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