Introduction
Car insurance is the safety cover a vehicle owner acquires over an unexpected monetary shock arising out of accidents, theft, natural catastrophes, or other losses to the car. Though an ordinary car insurance policy cannot take care of every risk involved in owning and running a car, add-ons or riders, by insurance companies, extend and broaden the cover for your insurance policy. These add-ons are coverage provisions over and above the coverage scope of the existing policy and can offer extra protection in the event of particular situations that are not covered by a regular plan. Within this article, we will dig deep into car insurance add-ons, the types that are available, their benefits, and things to consider when considering these supplemental covers.
What Are Add-Ons in Car Insurance?
An add-on is an optional rider or additional coverage that you can include with your car insurance policy.
These add-ons are meant to provide coverage for specific risks that may not be covered by the standard policy. The basic car insurance policy usually covers damage to your vehicle, third-party liability, and personal injury. Some natural calamities, theft of personal belongings, or mechanical breakdowns are not covered under the base policy. Add-ons can be a means to extend coverage and make the policy more comprehensive. When you buy a car insurance policy, you are usually offered a list of add-ons, which you can purchase at an additional cost. These add-ons can be tailored to meet your specific needs and help you avoid the financial burden of unexpected situations. The premium cost for these add-ons is added to the base premium of your policy, and the final premium depends on the add-ons you select.
Types of Car Insurance Add-Ons
There are various car insurance add-ons, and each one provides a different benefit. Let’s dive into the most popular and commonly opted for add-ons:
1. Zero Depreciation Cover:
One of the most in-demand car insurance add-ons is zero depreciation cover.
Depreciation is the loss in value of your car with time due to wear and tear, age, as well as usage. Under a standard car insurance policy, the amount you receive during a claim settlement is subject to depreciation deductions, which means you get a reduced claim amount. Zero depreciation cover eliminates this deduction, ensuring you receive the full claim amount, based on the current market value of your vehicle. This add-on is particularly beneficial for new cars, as their value depreciates quickly in the first few years. By opting for zero depreciation cover, you can ensure that you receive the maximum compensation, without having to bear the cost of depreciation.
2. Engine and Gearbox Protection:
The engine and gearbox are two of the most expensive parts of your car. Unfortunately, these parts are not covered by a standard car insurance policy. However, the engine and gearbox protection add-on ensures that these components are protected from external damages, such as water ingression, oil leakage, or accidental damage.
This service is highly recommended for car owners who drive in flooded areas. For luxury car owners or those with high-performance vehicles, the cost of repair may be too pricey.
3. Roadside Assistance Cover:
Roadside assistance offers a very nice add-on while providing emergency service in case you have a vehicle breakdown or for some other condition such as when you get stuck with a tire blowout or dead battery or ran out of gasoline. The range of services mainly includes towing services, on-scene mechanical and electrical repairs.
This service is especially useful for those who travel long distances frequently or live in remote areas where help may not be readily available. With roadside assistance, you can ensure that you are never stranded on the road.
4. Tyre Protection Cover:
Tyre damage, whether due to a puncture, burst, or other external factors, is a common issue that car owners face. Replacing or repairing damaged tyres can be expensive, especially if it happens frequently. The tyre protection add-on covers the cost of repairing or replacing damaged tyres due to accidents, natural calamities, or other unforeseen circumstances.
This is useful to the driver who uses their car a lot on poorly maintained or bumpy roads, with high risk of damage to tyres.
5. Return to Invoice Cover:
In the event that your car is stolen or is completely destroyed beyond repair following an accident, return to invoice will ensure you receive the full value of your car, taxes and registration included. With a normal car insurance policy, you could end up getting a much lesser value than you originally paid for your car, because the insurer calculates it as a depreciated value.
With the return to invoice cover, the original invoice value of your car is paid for you, meaning that you are able to raise enough money to either buy a new car or put the funds towards offsetting your financial loss.
6. Personal Accident Cover:
Car accidents can lead to serious injuries, and the medical treatment, hospitalization, and rehabilitation costs are quite high. The personal accident cover add-on provides financial protection in case of an accident that causes injury to the policyholder or passengers. This add-on covers medical expenses, compensation for permanent disability, and even death benefits.
Personal accident cover ensures that you or your loved ones are financially protected in case of an unfortunate accident, providing peace of mind and additional security.
7. Loss of Personal Belongings Cover:
If you have personal items like mobile phones, laptops, or bags stolen or damaged during an accident or break-in, loss of personal belongings cover helps you recover the cost of those items. Although personal items inside the vehicle are not usually covered by standard car insurance, this add-on ensures that all your valuable belongings are protected in case of theft or damage.
8. Key Replacement Cover:
Losing your car keys or damaging them can cause undue hassle and expense. Car key replacement cover is the key to recovering costs from the loss of lost or damaged keys, including getting a new key made or even replacing key fobs and electronic car keys.
Benefits of Add-ons in Car Insurance
Car insurance add-ons offer a wide range of benefits, making your insurance policy more comprehensive and suited to your needs:
- Customized Coverage: With add-ons, you can tailor your car insurance policy to suit your specific requirements. For example, if you live in a flood-prone area, you can opt for engine protection. If you frequently travel long distances, roadside assistance can be added to your policy.
•Peace of Mind:Add-ons give the additional protection with the knowledge of being financially secure for a broader range of risk. You’re covered for tyres getting damaged, or you are losing personal things such as bags in case you got robbed. So, you may feel safe going on the roads.
- Financial Protection: Zero depreciation cover and return to invoice cover contain add-ons, providing financial protection in a case of total loss of or complete damage to your car; you will be compensated suitably without any financial burden.
- Cost-Effective in the Long Run: Although the premium for add-ons adds to the cost of your policy, they can save you a lot of money in the long run by covering potentially high repair or replacement costs that may not be covered under a standard policy.
Considerations Before Choosing Add-Ons
- Assess Your Needs: You cannot afford all the add-ons; assess your driving habit, car model, and your location to figure out which ones are worth investing in. Roadside assistance will not be needed in case you do most of your driving in an urban area.
- Evaluate the Additional Cost: Add-ons come at an additional cost. It’s important to consider whether the extra premium fits within your budget. Remember, the value of the protection provided by the add-on should outweigh the cost.
- Review Your Existing Coverage: Check if your current policy or other insurance plans already provide some of the coverages offered by add-ons. For example, you may already have personal accident insurance through your health policy, making the add-on redundant.
- Claim Process: Make sure that the process for claiming add-on coverage is clear and straightforward. Verify with your insurer whether the add-ons are easy to claim and whether there are any exclusions or limitations in the policy.
Conclusion
Car insurance add-ons play a vital role in enhancing your coverage and offering protection against specific risks that may not be addressed by the basic policy.
Add-ons include everything, from engine protection to personal accident cover, helping you to customize the car insurance according to your requirements and provide some relief in a financial crunch while unexpected situations strike.
But here again, be cautious of weighing the benefits each add-on may provide against the needs and the budget before the final decision is made. With the right add-ons, you can ensure that you and your vehicle are fully protected, providing peace of mind every time you hit the road.
