As you hit the road with your brand-new wheels, it is essential to ensure that you have adequate protection in place. While a standard car insurance policy provides basic coverage, add-ons available can enhance your new car protection and offer additional benefits tailored to your needs.
In this article, we reveal the top car insurance add-ons crucial for safeguarding your new vehicle and guaranteeing peace of mind on the roads.
What is Add-on Cover in Car Insurance?
An add-on cover, also referred to as a rider, is an optional feature to be added in your standard car insurance policy to augment its coverage. These additional features furnish added protection beyond the fundamental coverage provided by the standard policy. These add-on covers are customizable, tailored to the individual needs and preferences of the policyholder, thereby providing an additional layer of security and peace of mind while driving.
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Benefits of Add-on Covers in Car Insurance
Enhanced Protection
Add-on covers provide additional protection against specific risks or incidents that may not be covered under a standard car insurance policy. This ensures comprehensive coverage for a wider range of potential risks on the road.
Customized Coverage:
Add-on covers allow policyholders to tailor their insurance policies to suit their unique needs and preferences. By selecting specific add-ons based on factors like driving habits, vehicle usage, and desired level of protection, policyholders can ensure that their insurance coverage meets their individual requirements.
Financial Security:
Add-on covers offer financial security by providing compensation for various damages, repairs, or losses resulting from accidents, natural disasters, or other unforeseen events. This helps policyholders avoid significant out-of-pocket expenses associated with car repairs or replacements.
Peace of Mind:
With add-on covers in place, policyholders can enjoy peace of mind knowing that they have comprehensive protection against a wide range of risks on the road. This alleviates concerns about potential financial burdens or liabilities resulting from unexpected incidents.
Top Must-Have Car Insurance Add-Ons for Brand New Cars in India
For brand-new cars in India, always prefer comprehensive protection right from the start and it is mandatory to purchase insurance as per the motor laws of India. However, many individuals do not know they can also enhance their insurance coverage while purchasing a new car insurance policy, particularly comprehensive or own damage coverage. Here are the top must-have car insurance add-ons tailored specifically for new vehicles in India:
- Zero Depreciation Cover
- Road Assistance Cover
- Engine Protection Cover
- Consumables Cover
- Return to Invoice (RTI) Cover
- Key and Lock Protection Cover
- No Claim Bonus (NCB) Protection
Zero Depreciation Cover: One of the most valuable add-ons for a new car is a zero depreciation cover. Standard insurance policies typically deduct depreciation from the claim amount for replaced parts during repairs. However, with a zero depreciation cover, you can claim the entire cost of repairs or replacement without factoring in depreciation, ensuring that you receive maximum reimbursement.
Engine Protection Cover: Your car's engine is its heart, and repairing or replacing it can be a costly affair. Engine protection cover provides financial assistance in case of damages to your car's engine due to water ingression, lubricating oil leakage, or hydrostatic lock. This add-on can save you from hefty repair bills and ensure that your car remains in top condition.
Roadside Assistance: Breakdowns and emergencies can occur unexpectedly, leaving you stranded on the road. Roadside assistance add-on offers services such as towing, battery jump-start, flat tire assistance, and fuel delivery to help you get back on track swiftly. Having this add-on gives you peace of mind knowing that help is just a phone call away.
Return to Invoice Cover: In the unfortunate event of your car stolen or declared a total loss in an accident, a return to invoice cover ensures that you receive the original invoice price of the car from the insurance company. This add-on bridges the gap between the insured declared value (IDV) and the actual purchase price, protecting your investment.
Personal Accident Cover for Passengers: While standard car insurance policies provide coverage for the vehicle's owner-driver, it is crucial to extend protection to passengers as well. Personal accident cover for passengers provides compensation in case of bodily injury or death sustained by passengers during a covered accident, offering financial security to you and your loved ones.
Key Replacement Cover: Losing or damaging your car keys can be inconvenient and expensive. Key replacement cover reimburses the cost of replacing lost or stolen keys, including locksmith charges and reprogramming costs for keyless entry systems. This add-on ensures that you must not be left stranded due to a lost or damaged key.
Tyre Protection Cover: Potholes, sharp objects, and road debris pose a constant threat to your car's tires. Tyre protection cover offers reimbursement for repair or replacement of damaged tires due to punctures, cuts, or bursts. With this add-on, you can drive with confidence knowing that your tires are protected against unforeseen hazards.
No Claim Bonus (NCB) Protection is an add-on feature available with car insurance policies that safeguards the accrued No Claim Bonus in case of a claim. No Claim Bonus is a discount offered by insurance companies to policyholders who have not made any claims during the policy term. It is a reward for safe driving and maintaining a claim-free record. With NCB Protection, policyholders can make a certain number of claims during the policy term without losing their accumulated No Claim Bonus.
How Motor Insurance PoSP can help you in selecting right add-ons for your new car
Motor Insurance Point-of-Sale Persons (PoSPs) play a crucial role in helping you select the right add-ons for your new car insurance policy. Here is how they can assist you:
Assessment of Needs: PoSPs will first assess your specific needs and requirements based on factors such as your driving habits, vehicle usage, and budget. They will understand your concerns and preferences to recommend add-ons that best suit your situation.
Knowledge and Expertise: PoSPs have extensive knowledge and expertise in motor insurance products and add-ons. They can explain the features, benefits, and limitations of each add-on, helping you make an informed decision.
Customized Recommendations: Based on their assessment of your needs, PoSPs can provide customized recommendations on which add-ons would be most beneficial for you.
Comparative Analysis: Insurance PoSPs can conduct a comparative analysis of different add-ons available in the market. They can highlight the differences in coverage, premiums, and terms of each add-on, enabling you to make a well-informed choice.
Explanation of Terms and Conditions: Add-ons often come with specific terms and conditions that policyholders need to be aware of. PoSPs can explain these terms and conditions in simple language, ensuring that you understand what is covered and what is not under each add-on.
Cost-Benefit Analysis: PoSPs can help you perform a cost-benefit analysis to determine whether the premium cost of each add-on justifies the additional coverage it provides. They can assist you in evaluating the value proposition of each add-on based on your budget and coverage needs.
Assistance in Documentation: Once you have selected the add-ons you wish to include in your policy, PoSPs can assist you in completing the necessary documentation.
Ongoing Support: Even after purchasing the policy, Motor PoSPs can provide ongoing support and assistance. They can help you with any queries or concerns you may have regarding your add-ons, claims process, or policy renewal
Bottom Line
Choosing the right add-on covers for your new car insurance policy is vital to ensure thorough protection while driving. From zero depreciation cover to roadside assistance and NCB protection, each add-on provides distinct benefits designed to address particular risks and elevate your sense of security. By thoughtfully evaluating your driving patterns, vehicle usage, and personal requirements, you can tailor your insurance coverage with premium add-ons, securing your investment and driving with assurance that you are adequately shielded against unexpected circumstances.
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FAQs
What are car add-ons?
Car add-ons, also known as insurance riders or endorsements, are optional features that you can include in your standard car insurance policy to enhance its coverage.
Why are add-ons important for newly purchased cars?
Add-ons provide additional protection beyond the basic coverage offered by standard insurance policies, making them essential for safeguarding your new investment against various risks on the road.
Which add-ons are considered essential for newly purchased cars?
Some essential add-ons for newly purchased cars include zero depreciation cover, engine protection cover, roadside assistance, return to invoice cover, personal accident cover for passengers, key replacement cover, and tyre protection cover.
How does engine protection cover benefit new car owners?
Engine protection cover provides financial assistance in case of any damage happening to the car's engine due to water ingression or lubricating oil leakage. It can save you from costly repair bills and ensure your car remains in top condition.
What is roadside assistance, and why is it essential for new car owners?
Roadside assistance offers services such as towing, battery jump-start, flat tire assistance, and fuel delivery in case of breakdowns or emergencies. It is crucial for new car owners to have this add-on for prompt assistance and peace of mind while driving.
Can I customize my add-ons based on my needs and budget?
Yes, you can customize your add-ons based on your driving habits, vehicle usage, and individual requirements. It's essential to assess your needs and budget carefully to select the add-ons that offer the most value for your situation.
Are add-ons available for both comprehensive and third party car insurance policies?
Yes, add-ons are available for both comprehensive and third party car insurance policies. However, the availability and terms of add-ons may vary depending on the insurance provider.
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