Car Insurance Best Add-On Covers For Luxury Cars

• Protect yourself with third party or comprehensive cover
• Use bumper to bumper policies to reduce your liability
• Enjoy facilities like zero depreciation and roadside assistance covers

Having a luxury car can be a huge liability in case of a mishap unless you have the right insurance cover and vital add-on covers. In India there are two kinds of insurance policies available, comprehensive car insurance policy and third-party liability car insurance plan.

A comprehensive car insurance plan covers third-party liabilities as well as own damage liabilities while a third-party liabilities insurance plan covers third-party liabilities alone that one incurs at the time of a mishap.

For a luxury car, it is always best to go with a comprehensive coverage as this insurance plan offers an extensive coverage and you can opt for additional coverage via add-ons.

Here are a few add-on covers that would benefit car owners of luxury vehicles:

1. Zero Depreciation Cover

A zero depreciation cover or nil depreciation cover or bumper to bumper cover will protect the value of the car parts and accessories against depreciation. Which means that availing this cover will safeguard the value of the car parts and accessories during the policy period. Repairing a luxury car can be expensive since the car parts or accessories are expensive and replacing or repairing the same can burn a hole in your pocket. Therefore, availing this add-on cover will ensure that you receive the complete claim amount at the time of claim settlement.

2. Return to Invoice Cover

Return to Invoice cover is beneficial when it comes to total loss of the vehicle; if the vehicle has been stolen and cannot be found or the vehicle has been damaged beyond repair ue to a major mishap. Either way, under this cover, you will receive the complete amount as per the original invoice value of the vehicle at the time of claim settlement, ensuring that you are able to purchase another vehicle.

3. Engine and Circuit Protect Cover

Engine and circuit protect cover protects the heart of your vehicle, which is the engine and its related circuits. In case your vehicle’s engine gets damaged as a result of any mishap, you can get it fixed at any workshop free of charge under this cover.

4. No Claim Bonus Protection Cover

No Claim Bonus is a discount on insurance premium offered by the insurer to the policyholder for every claim-free year. The percentage of discount offered starts with 20% for the first year and can increase upto a maximum of 50% on the fifth year. You can accumulate the NCBs for a maximum of five consecutive years. Now, in case you raise a claim during your policy period, you will lose all your accumulated NCBs. In order to protect your accumulated NCBs you can avail the No Claim Bonus protection add-on cover with the base policy. This ensures that you don’t lose your discount even if you raise a claim.