When you purchase a comprehensive car insurance policy, the insurer always provides few add-on covers as options to enhance to coverage capacity. These add on covers are important because Indian traffic and the violation on signals are very high. Therefore any collision, minor dent, heavy damage can happen within the blink of an eye.
It is difficult to rely on public transports like buses and autos as the availability is very uncertain. Whereas traveling by own vehicle like car, will provide us with flexibility in transport with comfort and easy traveling. Buying a car is also not difficult today. The paycheck and vast financing options with lucrative discounts have made it easy to purchase a car. However, it is cost of maintenance that makes us worry before purchasing a car. The repairs, regular servicing, maintenance, etc. are costly affairs to afford for a middle-class man. If the car meets with an accident or has hit a rock or otherwise, the cost of repair and replacement of parts are really expensive for you to pay from own pocket.
Having a car insurance that provides an extensive cover is helpful in such situations because the insurance company will pay for the damages and cost of repair. Add-on covers are essential because the basic comprehensive policy do not include some of the coverage in itself. The add-on optional can be purchased for few extra thousands above your basic policy. The add-on covers available for car insurance are as follows:
Nil or Zero Depreciation cover: This is a very popular add-on cover also known as bumper-to-bumper insurance. This add-on cover is available across all segment of cars. A zero depreciation cover plays a huge role in claim settlement calculations or in reimbursements. Usually when car insurers pay the claim settlement amount or when reimbursing your bill payments, they deduct the depreciation value of the car as on that day. That is why no insurer will offer to pay the entire claim amount. However, if you have this cover, then the Depreciation factor will not be considered for claim settlement calculations. This optional cover is ideal for cars which are less than 5 years old.
No-claim bonus protection cover: No-claim bonus is a discount provided by the insurer as an appreciation for not claiming the insurance during a policy year. However, if you do happen to claim even once, the NCB will not be applicable. You can use the NCB discount while you renew the policy and it can be accumulated up to 5 years. NCB protection cover will stop NCB discount from becoming nil and you can use the discount in subsequent years.
Roadside assistance cover: If the car has a breakdown while you are travelling be it on city roads or highways, immediate assistance is required. If you are in a remote where getting a mechanic is also difficult, this add-on cover can be a boon to you. You just have to call the insurer and inform about the situation. The insurer will either arrange for towing if the engine is not working, or will arrange for garage service with its network of garages. Few insurers offer this as a part of the basic policy, else you can opt for this as add-on cover.
Engine Protection cover: Engine is like the heart of a car, if any minute damage or negligence to its repair, it can cause serious problems. The replacement parts or repair that needs to be done if its broken will cost you at least half the cost of the car which is difficult to bare all by yourself. So having this add-on cover will give a sense of relief and safety as the insurance will provide complete protection to the engine. It covers, damage to the gearbox, water ingression, hydrostatic lock, engine lubricant oil leakage, etc.
Personal accident cover: This add-on cover provides 100% protection to the owner of the vehicle. If he/she suffers an unfortunate death or has permanent disability due to an accident, then the insurance company is liable to pay compensation as agreed in the policy. If it is a minor injury, then the insurance company will take care of the hospitalization expenses. This cover is however not applicable to person who has multiple vehicles registered under his/her name or if he/she is using personal vehicle for commercial purpose.
Return to Invoice cover: You can buy this cover within the completion of the first policy year. If the car is totally damage due to an accident or is irreparable due to a mishap, the insurer will provide full value of the vehicle without considering the depreciation percentage.
Loss of personal belongings: If the car is stolen along with your belongings or just the belongings inside a car, the insurance company will allow you to claim for the loss within a specified time. It can be laptop, electronic devices, purse, etc. Few companies allow the claim amount up to Rs.50,000.
Key replacement: The cost of remote keys can go up to Rs.5,000 for the modern day cars. But if you lose it you will have to change the entire set or get it configured to the new key. But if you have this cover a part of the new key replacement will be covered.
It is not necessary that you chose to opt for all the optional covers mentioned above. As per your requirement, you can choose these add-on covers. To buy a comprehensive car insurance policy, online mode is the best way. You can compare many insurers on a neutral third-party website where you can get all the information you need about purchasing a car insurance. These websites can also help you with obtaining car insurance with minimum paperwork and instant services. Just like you do research as to which car model to buy, it is equally or more important to research on what type of coverage to have for your car. You can calculate the premium amount yourself with the help of online bike insurance calculator which is freely accessible to everyone. You just have to input few values as mentioned in the calculator and know the exact premium mount you are liable to pay in order to avail a car insurance.