Buy These Add-ons To Make Most Out Of Your Car Insurance
Even though availing car insurance has been made mandatory since the Motor Vehicle Act was issued in 1988, most of us are yet to understand the basic policy intricacies and reap most of the benefits. In general, a car insurance policy provides monetary coverage and security in case of theft or damage to the car in case of accidents. However, there is a lot more than that. Picking up suitable add-on covers in motor insurance not only provides better coverage but also additional benefits which are primarily important at times of distress. However, we need to understand what is add on cover in car insurance? These are additional benefits which can be included in the motor insurance policy at a nominal price and provide extended coverage besides theft and damage. These covers are completely optional and are only included after proper consent from the policyholder. Hence, let us understand the most important add-on covers in car insurance and decide on the ones we need the most.
Zero Depreciation Add-On
Also known as the Nil Depreciation cover, helps the policyholder get complete reimbursement while making car insurance claims. If the car gets completely damaged after an accident, the company shall not deduct any depreciation cost of the car, if the policyholder has added Zero Depreciation in his/her policy. The company shall be liable to pay 100% value of the car, except the tires as well as the batteries. However, one should keep it in mind, that this motor add on insurance shall not be applicable to cars beyond 5 years of age.
Daily Cash Allowance Add-On
Certain motor insurance companies provide an extremely beneficial add on insurance policy. The Daily Cash Allowance add-on allows the policyholder a certain amount of regular allowance for transportation when the car is being repaired in the garage. This particular allowance is provided to the policyholder up to a period of 10 days. The allowance is restricted to two values, naming 500 INR and 1000 INR, depending on the amount of the policy.
Engine Protection Add-On
Engine Protection Add on cover in motor insurance allows the policyholder to claim for policy benefits in case the engine needs to be repaired or replaced. In general, a comprehensive vehicle insurance policy does not provide expenses for engine damage. However, with this particular add-on, the policyholder shall get the necessary expenses reimbursed for any repairing of the car engine.
Personal Accident Cover
Such add on covers in motor insurance provides legit compensation in case of an accident of the insured vehicle that involves death or fatal physical injuries. This is considered extremely important as even if the person is not separately insured for physical injuries, he/she shall be able to get the necessary monetary support in hours of distress.
It is always better to ask what is add-on cover in motor insurance before picking up on any. This makes the policy more clear and helps the individual understand it better. However, one must pat thorough attention in understanding which add-on cover in motor insurance suits his/her needs the most.
There is another benefit, NCB (No Claim Bonus) is given to a good driver is provided by the insurance company to the policyholder for making no claims during the tenure of the insurance. It is a certain percentage of discount which is given to the policyholder for not making any sort of claim during policy period. The discount ranges from 20% for first year and goes upto 50% for five consecutive years. NCB, non-claim bonus totally depends on the number of years the policyholder survives without making any car insurance claims. However, the NCB add-on can only be exercised on renewal of the policy and not an Add-on. It is a bonus that a good driver gets for not making any claim throughout the policy year.