Car Insurance Add-On Covers

When settling claims, insurers typically deduct the applicable depreciation on your car and its parts, reducing the claim amount. However, with a zero-depreciation cover, you can alleviate the burden of bearing the depreciation cost of your vehicle, thereby raising your claim amount. While most insurers limit zero depreciation claims to two, some, like IFFCO Tokio, offer unlimited zero depreciation claims during the policy tenure.

2. Consumables Add-on Benefit:

This add-on offers coverage for consumable items like grease, lubricants clip, air conditioner gas, bearings, fuel filter, engine oil, oil filter, brake oil, nuts and bolts, screws, washers, etc., which are typically not included in the standard policy coverage.

3. Roadside Assistance Cover:

This additional coverage ensures access to assistance services in case of a breakdown of the insured vehicle. Services include towing to the nearest garage, assistance for lost keys, on-site repair services, changing flat tyres, fuel delivery, etc.

4. Engine Protection Add-on Benefit:

This coverage enables the policyholder to be reimbursed for expenses incurred due to electrical breakdown or mechanical breakdown of the engine caused by factors such as oil spills or water ingress.

5. Key Loss Protection Add-on Benefit:

Under this add-on cover, the insurance company assumes responsibility for compensating the policyholder in the event of key(s) being lost.

6. Passenger Support Add-on Cover:

This comprehensive cover combines medical expenses, hospital allowance, and medical transport assistance for the policyholder in case of an accident.

7. Tyre Damage Add-on Protection:

This additional coverage safeguards against damages such as in-tyre bulges, punctures, tyre bursts, cuts due to accidents, and more.

8. Return to Invoice Add-on Coverage:

This additional coverage enables you to receive the full invoice price of your vehicle in the event of Total Loss, Constructive Total Loss (CTL), or theft.

9. No Claim Bonus (NCB) Protection Add-on:

This add-on ensures the retention of your No Claim Bonus (NCB) discount, even if you've filed a claim during the last policy tenure. NCB is a discount on your own damage premium for each claim-free year.

10. Personal Belongings Loss Add-on:

This add-on enables the insurer to compensate the policyholder for the loss of personal belongings, including items typically used, carried, or worn, such as articles of personal nature.

11. Daily Allowance Add-on Cover:

Choosing this add-on entitles you to receive a daily allowance from the insurer in the event of the car being lost or undergoing repairs.

12. Personal Laptop and Mobile Add-on Cover:

With this add-on, you can receive compensation for the loss of a personal laptop and mobile device stored in the vehicle.

13. GAP Value Add-on Cover:

This add-on ensures that you receive the full invoice price of the vehicle in cases of theft, total loss, or constructive total loss. Additionally, it includes coverage for Road Tax and first-time registration charges, subject to an additional premium.

Benefits of Car Insurance Add-On Covers 

Car insurance add-on covers offer several advantages, including:  

1. Depreciation Coverage: Over time, the value of car parts decreases due to wear and tear, known as depreciation. Standard insurance policies do not cover depreciation costs when settling claims, leaving you responsible for these expenses. However, by opting for a zero-depreciation cover as an add-on, you can avoid these costs, as they are taken care of by the insurer. 
2. Emergency Assistance: In case of emergencies such as car breakdowns, adding roadside assistance coverage provides essential support. This cover offers various forms of assistance, including flat tyre repairs, fuel arrangement, towing services, on-the-spot minor repairs, and more, ensuring assistance during stranded situations. 
3. Engine Protection: The car's engine is a crucial and expensive component. Add-on covers help in ensuring the engine, which is typically not included in standard comprehensive plans. Additionally, consumables such as engine oil, gearbox oil, lubricants, nuts, bolts, and more used for car repairs can also be covered under this add-on. 
4. Coverage for Accidents: In the event of disability or death of the owner-driver, personal accident add-on covers provide financial protection against disabilities or death, offering coverage of up to Rs. 15 lakh. Furthermore, you can opt for optional personal accident coverage for passengers to safeguard your loved ones in case of unforeseen accidents. 
5. Retention of No Claim Bonus (NCB) Discount: Making a car insurance claim during the policy period results in the loss of a No Claim Bonus (NCB) discount. This discount is earned at policy renewal if no claims were made in the previous policy period. However, if you anticipate a higher likelihood of making a claim, purchasing this add-on allows you to retain your NCB.

Final Thoughts

In conclusion, car insurance add-on covers serve as valuable supplements to standard insurance policies, offering policyholders enhanced protection and coverage for their vehicles. While they may entail an additional cost in terms of premiums, the benefits they provide far outweigh the expenses incurred. From covering depreciation costs to providing emergency assistance and ensuring retention of No Claim Bonus discounts, add-on covers play a crucial role in strengthening the financial security of insured vehicles. Therefore, understanding the available add-on covers and choosing the ones that best suit individual needs and circumstances can significantly contribute to comprehensive and effective car insurance coverage.