Finance

Often Overlooked Add-Ons You Should Consider for Your Motor Vehicle Insurance 

Car insurance add-ons are becoming an excellent option for policyholders to get extensive coverage. Add-ons are features offered by insurance companies along with car insurance for added benefits and financial protection against any damage. Although several add-ons are provided, some add-ons which are relatively unknown yet beneficial for policyholders.

In this blog, we shall discuss add-ons that are available with cheap car insurance in India for extra protection.

What is the Need for Add-Ons in Car Insurance

Buying a car insurance policy protects you from financial losses in case of damages or accidents on the road. The insurance covers all the points as a basic protection plan. However, if you want additional security against unforeseeable incidents and damages that are not covered in your base plan, consider buying car insurance add-ons along with your regular insurance.

Car Insurance Add-Ons You Should Lookout For

 Zero Depreciation Add-On

Your vehicle suffers different sorts of internal and external wear and tear with every usage. These abrasions are impossible to stop even for the most careful drivers, and this leads to a decrease in the value of your vehicle, also known as depreciation.

This depreciation amount is calculated based on the age of the vehicle. At the time of claim, the insurance company will deduct the depreciation amount before giving you the insurance claim amount, resulting in a lower claim amount.

To avoid this loss, you can include a zero-depreciation add-on in your four-wheeler insurance, which will eliminate this deduction from your policy.

 Roadside Assistance Add-on

Your car is a machine that can have breakdowns in the middle of your drive. In such a case, you require assistance from the closest garage or get it towed. Having a roadside assistance add-on to your car insurance can help in such instances. This add-on provides you with services like a mechanic visit on location, tyre change, refuelling the vehicle, towing the car, etc.

Roadside-assistance add-on is exceptionally beneficial for you if you travel long distances and travel regularly.

 Return to Invoice Cover Add-On

Getting your car stolen or damaged beyond repair are two of the worst-case scenarios for any car owner. However, you can protect yourself from total loss by getting a return on invoice add-on with your insurance.

This add-on helps you get the claim equal to the invoice value. It will save you from bearing total financial loss of theft or irreparable damages done. But remember, you can not use this add-on for minor damages.

 No Claim Bonus Protection Add-On 

NCB, or No Claim Bonus Protection, is another overlooked add-on. It is beneficial for policyholders in case they did not claim during the previous year(s), as they can get a premium discount during the car insurance renewal online or offline. However, if you have claimed in the past year, then you become ineligible to get the discount.

Using the NCB add-on ensures that your NCB claim does not get affected if you file a claim. The cover can be activated when you make a claim for repair but not the replacement.

 Loss of Personal Belongings Add-On 

It is another add-on you need to consider before you buy car insurance: the loss of personal belongings and add-on benefits in case of theft. There are many instances where people’s personal belongings like laptops, cash, mobile phones etc get stolen from their vehicles. With this add-on at your protection, you can get cover for your loss without affection for your NCB claim.

 Summing Up

Car insurance has become a necessity for every car owner in India. It protects them from financial losses and legal consequences in case of damages or accidents. However, one can only sometimes be too sure. That is why insurance companies like Tata AIG provide add-on cover in car insurance to provide an extra set of protection and benefits to policyholders.

There are various add-on covers but these mentioned here are some of the most beneficial and yet undermined ones.

 Frequently Asked Questions 

  • Can I add-ons to my existing car insurance?

You can opt for add-ons at the time of purchase or policy renewal. To get add-ons on your car insurance you need to pay some extra amount on your premiums. The final amount of the premium will depend on what and how many add-ons you take.

  • Is the zero depreciation add-on applicable for 5-year-old cars?

No, you cannot buy a zero-depreciation add-on after your car becomes more than five years older. That is why it is recommended that you buy this add-on with online car insurance as soon as you buy a new car.

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