The deaths due to road accidents are increasing at an alarming rate. While we cannot bring this number to an absolute zero, a car insurance policy can be useful to take care of the damages and injuries in case of an accident. Your standard car insurance policy covers for the depreciated value of your car. This limited coverage offered by your car insurance plans may sometimes be insufficient. To compensate for this, using add-on covers can come handy.
Let us look at a few car insurance add-ons that substantially increase your policy coverage:
#1 Zero Depreciation Add-On
Depreciation is one factor that decreases the value of your car over a period of time. When you make an application for a claim, the insurance company pays you the amount or repairs after deducting the depreciation. Using an add-on cover, this deduction for depreciation can be avoided, and you can receive the full amount of claim.
#2 No Claim Bonus Protection Cover
No claim bonus (NCB) is the benefit in premium offered by your insurer for every claim-free policy year. This benefit of NCB is substantial and ranges between 20% to 50% for each consecutive year without claims, which can availed during car insurance renewal. But it isn’t always that you will not make a claim. In case you require to file an application for a claim, your NCB benefits are lost, and the premium amount is reinstated to the original amount. Thus, to prevent from losing your no-claim benefits, you can opt for an NCB protection cover. Here, you can make a claim for damages or repairs upto a specified number of times depending on the terms of your policy.
#3 Consumables Add-On Cover
Using a consumables add-on, you can ensure your insurance policy covers any spares that are required for your vehicle on a recurring basis. If you are someone who wants complete protection, this is an excellent coverage option. In case you do not already have a consumables add-on cover, it is a perfect add-on for your next car insurance renewal.
#4 Return to Invoice (RTI) Cover
In case of theft or complete damage to your car, the insurance company pays you the insured declared value or the IDV of your vehicle. The amount of IDV for a vehicle goes on reducing as it ages. If you purchase a return to invoice cover, the insurance company pays your car’s original invoice value. Thus, when your car is stolen or damaged beyond repair, return to invoice cover can save you from any financial loss.
#5 24×7 Roadside Assistance Cover
Often car breakdowns occur at most unexpected times. It might leave you stranded in the middle of your road trip or your business meeting. In any case, a roadside assistance plan can be used to repair your car. If for some reason it isn’t possible to repair your car, it can be towed back to the nearest service station.
These various add-ons can help you significantly expand your policy coverage. As they say, there are no free lunches; similarly, these add-ons covers come at a price. A car insurance premium calculator can come handy to compare these plans. Make sure you opt for the add-ons that provide maximum coverage as per requirement.
