What Does Your Car Insurance Policy Cover? | RenewBuy

What Does Your Car Insurance Policy Cover?

A number of times policy purchasers do not realise the various cover benefits that they receive on purchase or renewal of a car insurance policy. A majority of us do not care to read the documents handed over to us during the purchase of a policy, which is why there is a lack of complete knowledge of what claims can be covered through the car insurance policy.

Thus, we would like you to have a look at the various covers mentioned below so that you are ready to claim for any such privileges during an unfortunate mishap.

Cover is not just limited to accidents

Any good car insurance policy is liable to pay for not just the damages caused due to accidents, but also due to natural disasters such as landslides, lightning, earthquakes, floods, etc. Moreover, a car insurance policy is also liable to cover losses due to terrorist attacks, transit damages, burglary, riots, theft, etc.

Towing Benefits

Another benefit that some insurance agencies offer in their motor insurance policies is towing coverage but to a certain limit. There are times when you may be taking your car in a remote location where it may be hard to find a mechanic after an unfortunate accident. This is where towing charges for your car can be claimed from the insurance company. A major benefit of this service is that when you renew your policy, the towing cover benefits are also renewed.

Car Insurance Add-Ons for Accessories

A general car insurance policy in India will cover up damage costs for the car itself. However, any policyholder can opt for extra benefits for the car accessories as well. This may increase your premium rate, but it is still more affordable than buying new accessories after an accident.

24/7 Assistance On-Spot

Not many are familiar with a cover that most car insurance policies provide. In this cover privilege, if your vehicle gets stranded in some unknown place, then you can use your insurance policy benefits to cover up for legal/fuel assistance, taxi arrangement, car towing, etc.

Negligible Depreciation Cover

Any car insurance policy provides claim benefits based on a formula involving depreciation value and the market value of the car. With the increase in age of the car parts, the depreciation value increases and the insurer covers an amount where the depreciation value is subtracted from the market value. However, policyholders can opt for a zero depreciation cover benefit where any car owner will be able to get better car insurance claim benefits without using depreciation as a factor.

Protection For Engine

Any issues with your car engine, for example: a water ingression, damage to gearbox or oil leakage, is covered by the insurance agency.


Choosing a car insurance policy is one thing but understanding their numerous benefits makes your investment a fruitful one. While some of the above-mentioned covers are meant to be purchased as add-ons to your policy, yet others among them are already added to the premium costs. So, make sure you learn about your benefits from car insurance schemes fully.

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