An add-on cover in car insurance is an additional coverage benefit used to enhance the basic coverage benefits of comprehensive car insurance at an additional premium amount. With the help of these additional add-on riders, a car owner can deal with various situations efficiently. But only standalone own-damage car insurance plans or comprehensive car insurance plans offer add-on riders. This article will discuss the list of all the car insurance add-ons riders available in India.
List of Car Insurance Add-on Covers available in India
Various car insurance companies provide different add-on covers for car insurance. The following are some of the most common add-on riders available in India by most car insurance companies:
Zero Depreciation Cover is an additional add-on rider that shares the cost of depreciation of the car and its parts and enables the car owner to get a higher claim amount. It ensures that while paying the claim amount at the time of claim settlement, the cost of depreciation is not deducted. Most of the car insurance companies allow only two zero depreciation claims in the policy term, while some car insurance companies in the market allow unlimited zero depreciation claims like IFFCO Tokio General Insurance Company.
Consumables Add-on Cover
The consumable is an additional add-on cover that covers the cost of consumable items such as air conditioner’s gas, grease, bearings, lubricants clip, engine oil, fuel filter, oil filter, washers, break oil, screw, nut and bolt, etc, which are not covered in the standard car insurance plan.
Roadside Assistance Cover
Roadside Assistance Cover is an additional add-on cover that provides roadside assistance service to the car owner in case the car breaks down in the middle of the road. The insurance company will arrange for a mechanic to look over the car and provide assistance with just a phone call. Change a flat tyre, perform basic repairs on site, arrange for replacement of car keys, start a battery, and other services are provided under this add-on cover.
Engine Protection Cover
Engine Protection Rider covers loss or damage to the engine of the car due to problems like electrical or mechanical failure, water infiltration, oil leakage etc. It provides financial coverage for replacement of car engine and its parts. However, similar to zero depreciation cover, engine protection cover is offered only to cars that are less than five years old.
No Claim Bonus Protection Cover
No Claim Bonus Protection Rider is used to protect the No Claim Bonus (NCB) of the vehicle owner even if they file a claim during the policy term. It enables the insured to reduce his premium amount by using NCB, irrespective of whether a claim is made. NCB protection cover is applicable only on own damage insurance premium as third party insurance premium is determined by IRDAI and cannot be changed.
Daily Allowance Cover
Daily Allowance cover is an optional add-on cover that provides daily cash allowance to the policyholder to take care of daily traveling allowance at the time of car repairs in the garage. It reimburses the car owner for any costs incurred while renting the car or taking public transportation for travel while the car was in a network garage for repairs. However, this add-on rider is applicable only if the car has been repaired in a network garage.
Passenger Protection Cover is an optional rider that pays for any medical expenses incurred by the passenger of the insured vehicle due to the accident. It pays for the cost of medical care, hospitalization and ambulance charges. Additionally, it offers compensation in case the insured person is killed or disabled due to an accident.
Tyre Protect Cover
A standard car insurance plan does not cover damage or loss of tires if they are not due to an accident. This is where the tire protection cover comes in handy. Tyre protection is an additional add-on rider that reimburses the amount for repair and replacement of tires of the insured car such as tire cut, tire burst, puncture etc.
Key Replacement Cover
The cost of replacing high-end or technologically advanced car keys is around INR 10K and sometimes even more. The cost of replacing car keys in case of misplaced, stolen, damaged, or even in need of lock replacement is covered by the Key Replacement Add-on Cover.
Loss of Personal Belonging Cover
An add-on rider called Loss of Personal Belongings provides financial assistance in case of the insured car or personal belongings being stolen from the car. It also offers coverage in case of any damage caused to the personal belonging inside the car.
Benefits of Add-on Riders in Car Insurance
Below mentioned are the benefits of choosing add-on riders while buying a car insurance:
- Protects depreciation value of the car
- Emergency roadside assistance
- Financial coverage in case of accidental death and disability
- Loss of personal belongings due to theft is covered
After reading the numerous car insurance add-ons and its benefits, you can now quickly enhance your car insurance policy. If you haven't chosen any add-on covers in your current car insurance plan, you can do so when your car insurance policy is renewed.