One of the most common mistake that people make while buying a car insurance policy in haste is that they don’t spend enough time in understanding the intricacies of the policy; does it adequately cover all the potential risks or not, what is the claim settlement process, what are the kind of coverages provided in the standard car insurance policy by the insurer, and such like.
To choose the ideal add-on cover for your car it is important for you to understand some crucial add-on covers which should be chosen for the complete protection of your car.
- NCB Retention – Known as No Claim Bonus, it is a facility offered to those policyholders who have not filed for even a single claim during their car insurance policy period. NCB can be accumulated for years to get attractive percentage of discount on the insurance premium amount. The flipside of NCB is that even if you file for a single claim you fail to receive any bonus at all. To avoid such a situation, you can opt for NCB retention. Under this add-on, if the claim filed is below a certain amount, you will still be allowed to retain a given percentage of the NCB.
- Zero Depreciation – To avoid getting a shock when you learn that your car insurance provider will not reimburse the entire amount spent in repairing your car damage, for which a claim has been sought. The reason behind this is that insurance companies pay for a part after deducting the depreciation value/cost of your car. However, if you have bought an add-on cover that offers zero depreciation benefit, you can get the entire cost spent on replacement of parts reimbursed. Ideally this benefit is only for new cars and not pre-owned cars, or it is restricted to vehicles which are not older than 5 years.
- Medical Expenses Cover – In case of an accident it is highly likely that the passengers inside your car can be a victim of injuries and casualties which require immediate medical attention. An insurer offers medical expenses cover, which reimburses the medical expenses incurred on the treatment of passengers.
- Daily Cash Allowance: This is one of the most important and beneficial add-on covers, especially for those living under budgetary constraints. According to this cover, the insurer provides the insured with a monetary allowance for covering his/her daily transportation costs, in case the car has to stay in the garage for a couple of days for repair.
- Personal Accident Cover – A comprehensive car insurance plan gives you the option of buying personal accident cover which would provide a lump sum benefit in the event of permanent disability or partial permanent disability or accidental death caused by an accident of the insured car.
Neutral third party financial websites have made it extremely easy and accessible to compare different car insurance policies offered by leading insurance companies, online. Be wise, and make use of this facility to understand the features of different policies and their costs. Once that has been done, make a decision on which of these add on covers would particularly make sense for you to choose what suits your needs the best.
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