Car Insurance Add-Ons | Finserv MARKETS

Add-Ons To Car Insurance

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Introduction

While buying a new car, getting car insurance is a vital step for any car driver owner. Not only is car insurance legally mandated, but it also provides your four-wheeler with much-needed protection against unpredictable mishaps. Comprehensive car insurance is a popular insurance option that offers the most extensive coverage available in the market. However, there are still certain aspects that are not covered under this type of insurance. This is where car insurance add-ons come into the picture. Read on to understand exactly what add-on in car insurance means.

 

What are Car Insurance Add-Ons?

Add-on covers in motor insurance are essentially a form of additional coverage that can help extend the protection offered by a particular insurance plan. The main purpose is to strengthen the policy’s financial protection beyond the standard comprehensive insurance coverage. Any add-on cover in motor insurance comes at a certain extra cost; an additional premium. Hence, the overall premium for the insurance plan increases on buying an add-on.

Add-on covers can be bought along with comprehensive or standalone own damage care insurance, but not with third-party insurance. The reason for this is that third party insurance only deals with damages sustained by a third party and not the policyholder, thus negating the need for extra coverage.

Different Types of Car Insurance Add-Ons

Insurance providers in India offer a variety of add-ons in car insurance. While the availability of each add-on depends on the chosen insurer, these are the standard options on offer:

  • Zero Depreciation Cover:

This is one of the most common add-ons in car insurance. Every vehicle sees depreciation in value over time; this add-on allows the policyholder to bypass the additional financial burden due to depreciation so that it does not affect the final claim amount adversely.

  • Consumables Cover:

Consumable components such as bearings, engine oil, brake oil, lubricant clip, etc. are all covered under the umbrella of consumables add-on.

  • GAP Value Cover:

In the event of a total loss such as theft, GAP value add-on helps the insured get the total invoice price of the car, and covers road tax as well as initial registration charges.

  • Roadside Assistance Cover:

This add-on allows policyholders to avail timely roadside assistance at the time of an accident or mishap, or in the form of tyre changes, towing assistance, fuel delivery, etc.

  • Key Loss Cover:

In case the insured loses the keys to their car, the insurance company will compensate for the loss thanks to this add-on.

  • Passenger Assistance Cover:

This cover can be very useful in the event of an accident involving the policyholder/ passenger in the insured vehicle who needs medical assistance, and covers transport, medical expenses and hospital entry.

  • Engine Safe Cover:

If the insured vehicle’s engine undergoes a breakdown, this add-on can cover the repair expenses for the same.

  • Loss of Personal Belongings Cover:

Theft or accidents can cause considerable damage to the policyholder’s personal belongings in the vehicle. This add-on insures such articles which are commonly found/stored in a car. Some insurers also offer the Personal Laptop and Mobile add-on which is specific to the insured’s laptop and mobile devices.

  • Return To Invoice Cover:

As the name suggests, this add-on ensures that the policyholder gets the complete invoice price in case of a constructive total loss, total loss or theft.

  • Daily Allowance Cover:

This add-on can come in handy as it gives you a daily allowance for the entire duration that the damaged car is being repaired, lost, or unusable.

  • Protection Of NCB Cover:

This add-on enables you to retain the no-claim bonus from the previous policy tenure, even if you had filed a claim during that period.

  • Tyre Damage Cover:

A simple but essential add-on, this covers common tyre-related damage, such as punctures, cuts, burst tyres, etc.

Are Add-Ons Really Necessary?

People generally opt for comprehensive insurance to get the most extensive protection for their vehicle but hesitate to spend more on additional coverage that they may not need to use. While some may not consider add-on covers an absolute necessity, they can certainly be very useful for owners or drivers who have specific concerns that are not covered in a standard comprehensive or standalone own damage policy.

Getting adequate insurance can mitigate the blow dealt to the policyholder’s finances in case of a mishap. Moreover, buying insurance may prove to be futile if the damage sustained is due to a specific cause that the comprehensive policy does not cover. Add-ons can help ease the financial burden on the policyholder and put them at ease. Moreover, people can also opt for a standalone own damage policy and use add-ons to extend the coverage instead of going for a higher premium comprehensive insurance plan.

Benefits of Buying an Add-on Cover

Add-ons come with a number of benefits that can make car insurance work better for customers:

  • Affordability:

Buying specific add-ons is a lot more cost-efficient than getting costlier comprehensive coverage insurance.

  • Extra coverage:

It extends the protection offered by a given policy.

  • Unique benefits:

Each add-on covers a specific scenario or event that may not be covered in any other policy or add-on.

  • Customize your coverage:

Add-ons allow you to tailor your insurance coverage as per your needs.

  • Purchase at any time:

Can be purchased at any time

  • Can protect you from effects of depreciation:

Despite depreciation, the zero depreciation cover can keep your car’s insurance value intact.

Summing It Up

Car insurance add-ons can prove to be a substantial advantage and allow policyholders to find or create the exact insurance coverage they are seeking. The Finserv MARKETS digital marketplace encompasses a variety of insurance options that customers can browse and buy their suitable vehicle insurance all in one place. Get car insurance add-ons to enhance your financial security along with your plan, today!

FAQs on Add-Ons to Car Insurance

  • ✔️What are car-insurance add-ons?

    Add-on covers extend the protection provided by a standard car insurance policy

  • ✔️Are motor insurance add-ons free of cost?

    No, each add-on carries a certain cost/premium.

  • ✔️Can I buy add-on covers without car insurance?

    No, add-ons are additional coverage and not standalone covers.

  • ✔️Which insurance plans are add-ons applicable to?

    Car insurance add-ons can only be purchased with comprehensive plans and standalone own-damage car insurance plans; they are not available with a third party policy.

  • ✔️Can I purchase multiple car insurance add-on covers?

    Yes, you can buy multiple add-on covers for your car.