Car Insurance Add-On Covers

Add-On Covers in Car Insurance - A car insurance add-on is an additional cover that can be opted with a comprehensive car insurance policy to strengthen the coverage and protection provided by a car insurance policy. There are multiple add-ons that can be opted for with a comprehensive car insurance policy.

List of Top Car Insurance Add-On Covers

The availability of car insurance add-ons varies from insurer to insure. The following are some car insurance add-on covers that are offered by most of the general insurance companies:

1. Zero Depreciation Add-on Cover

The amount of depreciation applicable on your car and its parts is deducted by the insurer from the claim amount at the time of a claim settlement. A zero depreciation cover helps you mitigate this burden of bearing the depreciation cost of your vehicle thereby increasing your claim amount. Most of the insurers allow a maximum of 2 zero depreciation claims, however, some insurers including IFFCO Tokio allow unlimited zero depreciation claims during the policy tenure.

2. Consumables Add-on Cover

This add-on provides coverage for consumable elements such as grease, air conditioner’s gas, lubricants clip, bearings, fuel filter, engine oil, oil filter, break oil, nut and bolt, screw, washers, etc, which are not covered in the standard policy.

3. Roadside Assistance Add-on Cover

This add-on cover secures assistance services in the event of the breakdown of the insured vehicle. The services include towing to the nearest garage, on-site repair services, assistance in case of loss of keys, changing flat tyres, fuel delivery, etc.

4. Engine Protection Add-on Cover

This cover allows the policyholder to get indemnified against expenses for mechanical/electrical breakdown of the engine due to an oil spill or water ingression.

5. Key Loss Add-on Cover

This add-on cover makes the insurance company liable to compensate the policyholder for the loss of key(s).

6. Passenger Assistance Add-on Cover

It is a bundled cover that includes Hospital Allowance, Medical Expenses and Medical Transport Assistance to the policyholder in the event of an accident.

7. Tyre Damage Add-on Cover

This add-on provides cover for damages such as in-tyre bulge, puncture or bursting of tyres, cut on a tyre due to an accident, etc.

8. Return To Invoice Add-on

This add-on cover allows you to get full invoice price of your vehicle when it suffers Total Loss, Constructive Total Loss (CTL) or theft.

9. Protection Of NCB Add-on

This add-on helps you retain your No Claim Bonus (NCB) discount even if you had filed a claim in the last policy tenure. NCB is the discount which you get on own-damage premium for every claim-free year.

10. Loss of Personal Belongings Add-on

With this add-on, the insurer compensates the policyholder for the loss of personal belongings such as the articles or other items of a personal nature which are likely to be used, carried or worn.

11. Daily Allowance Add-on

By opting for this add-on you get a daily allowance from the insurer when the car is lost or is out for repairs.

12. Personal Laptop and Mobile Add-on Cover

This add-on allows you to get compensation for the loss of a personal laptop and mobile kept in the vehicle.

13. GAP Value Add-on Cover

This add-on helps you get the complete invoice price of the vehicle in the event of theft, total loss or constructive total loss. It also covers the Road Tax and first time registration charges against an additional premium.

Read more: Use Car Insurance Calculator to calculate the premium for your car insurance policy along with these add-ons.

The add-on covers for car insurance brings several benefits:

1. Cover Car’s Depreciation – The value of your car’s parts reduce with time due to wear and tear which is called depreciation. While settling the car insurance claims, the insurer doesn’t give coverage to the depreciation cost and you will have to them. By adding a zero depreciation cover, you can avoid the depreciation cost as it will be taken care of from the insurer’s end only.

2. Get Emergency Assistance – If you get stuck in an emergency like a car breakdown, then you can add an add-on cover by adding a roadside assistance cover. It provides emergency support to you with several sorts of assistance like fixing a flat tyre, arrangement of fuel, car towing, on-spot minor repair, and so on, which helps you in a stranded situation.

3. Provides Engine Protection - The car’s engine is the most important part of a car and it is the costliest part as well. The add-on covers will help you insure your car’s engine which is not covered in a standard comprehensive plan. Also, the consumables such as engine oil, gearbox oil, lubricants, nut and bolt, etc, used for a car repair can also be covered with an add-on cover.

4. Coverage for Deaths and Disabilities – If you get disabled or death of the owner-driver of the insured car, the personal accident add-on cover provides financial coverage against disabilities or death up to Rs. 15 lakhs. Also, you can buy an optional personal accident cover for passengers to protect your beloved ones in case of an unforeseen accident.

5. Retain Your No Claim Bonus Discount - When you raise a car insurance claim during the policy period, you lose out on a No Claim Bonus (NCB). NCB discount is earned while renewing your plan if you haven't raised any claim during the previous policy period. However, if you think that the chances of raising a claim are higher, you can buy this add-on and retain your NCB.