Promote Discounted Add-ons with Festive Car Purchases

Posted on: Dec 18, 2025 | 3 mins | Written by: HDFC ERGO Team

Promote Discounted Add-ons with Festive Car Purchases

New cars come with higher repair costs, expensive parts and greater financial exposure if something goes wrong early on. Add-ons help you customise your policy so the coverage actually matches your usage and risk.

Why do add-ons matter, especially for a new car?

Add-ons are always beneficial in a car insurance policy, but they are especially required for a brand-new vehicle. Here are some of the reasons why:

1. Better protection:

A basic comprehensive car insurance policy provides coverage for damages to your own vehicle or to a third-party vehicle in case of an accident. But what happens if your car stops working due to waterlogging or a roadside assistance call?

This is where additional coverage comes in handy! An add-on is an extension of the comprehensive plan that enhances overall protection!

2. Personalised coverage:

Every driver uses their car differently, and your insurance should reflect that. Add-ons help you customise your policy based on your car’s age, the conditions you drive in, and the risks specific to your city, such as waterlogging, heavy traffic, long highway commutes, or higher theft rates.

Think of them as modular upgrades that let you shape your policy around how you actually use your car instead of relying on a one-size-fits-all plan when you buy car insurance online.

3. Long-term peace of mind

With enhanced coverage, you would worry less about sudden repair bills, unexpected breakdowns, or depreciation-related losses. Over time, this translates into smoother claims, predictable expenses, and the confidence that your insurance will step in when something goes wrong.

Strong coverage isn’t just about payouts. It’s about eliminating the small stresses that come with owning a car in real traffic and real conditions.

Top 5 essential car insurance add-ons for new cars

1. Engine protection cover:

The engine and the gearbox of your car are vital and expensive components. The additional cover of engine protection in car insurance pays for the necessary repairs and replacements of your car’s engine and gearbox in case they get damaged due to leakage of lubricant or water ingress.

The regular own damage cover under car insurance doesn’t cover this. Hence, investing in the engine protection cover in car insurance can be highly beneficial to owners of new cars.

This add-on would be ideal for:

a. Flood-prone cities

b. Heavy monsoon regions

c. New cars with expensive mechanical parts

This add-on is handy in metro cities where waterlogging is common.

2. Zero depreciation cover:

New cars start depreciating the moment they leave the showroom. Under the standard policy, the insurer deducts the depreciation value of the parts repaired or replaced from the final claim payout. However, with the zero depreciation cover, you get the full value of the parts repaired or replaced during claim settlements without the deduction of depreciation.

If you want more details on the benefits of this add-on, check out our blog on Why Zero Depreciation Coverage Matters.

This add-on would be ideal for:

a. Cars under 5 years old

b. New cars,

c. Anyone who wants minimal out-of-pocket expenses during a claim.

3. Roadside assistance (RSA):

Breakdowns happen—dead batteries, flat tyres, misplaced keys, empty fuel tanks. The roadside assistance in car insurance is a very value-for-money add-on that you can include in your policy when you buy car insurance online. Car breakdowns can happen to anyone and at any time, and you don’t really want to be wasting time during the festive season waiting for help to arrive.

Under this add-on, you get access to:

a. 24/7 fast and reliable assistance for things like vehicle key service,

b. Minor on-site repairs,

c. Towing

d. Emergency fuel delivery

e. Flat tyre repair and so on.

This add-on would be ideal for:

• New drivers,

• Highway travellers or

• Anyone who prefers assistance instead of handling issues themselves.

4. Return to invoice cover (RTI)

If your new car faces total loss or theft, the standard policy pays the current market value—not ideal for a recently purchased vehicle. Return to invoice in car insurance lets you recover the invoice value, bridging the gap created by depreciation.

It is highly recommended, especially for new and expensive cars. With this add-on, you can recover the invoice value of your vehicle if it suffers a total loss or a constructive total loss. It lets you efficiently replace your lost or totally damaged vehicle with a car of a similar make and model without suffering a significant financial setback.

This add-on would be ideal for:

• Brand-new cars

• High-value models

• Urban areas with a higher theft risk.

5. No claim bonus protection (NCB Protect):

You can use a claim bonus (NCB) to gain discounts on your car insurance premiums. If you’ve earned NCB through claim-free years, one claim can reset the entire benefit.

To protect your earned NCB, you can opt for the no-claim bonus protection cover. With this add- on, you can make a specified number of applicable claims during the policy year, without resetting your NCB benefits.

This add-on is useful for:

• Drivers with a strong NCB

• Anyone tracking long-term premium savings.

Things to Consider When Buying Car Insurance Add-ons

Here are some things you must consider when buying car insurance add-ons for your new car:

1. Match add-ons to your actual driving needs:

Pick covers that fit your usage, such as city traffic, long highway drives, flood-prone areas, or a brand-new car with expensive parts. Add-ons are most effective when they solve real risks you face.

2. Choose a comprehensive or standalone OD policy first:

Add-ons only work with your own damage or comprehensive car insurance plans. If you’re on a third-party-only policy, you can’t attach add-ons, so select the right base plan before customising.

3. Avoid overloading your policy:

More add-ons don’t always mean better coverage. Each add-on increases your premium, so prioritise offers that provide meaningful protection and skip anything you won’t realistically use.

Conclusion

A new car deserves more than basic coverage. Add-ons like zero depreciation, engine protection, RSA, RTI and NCB Protect turn your policy into a stronger, more practical safety net. By choosing the right combination, you safeguard your investment and enjoy a smoother ownership experience, without unexpected financial surprises.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

Will Your Location Affect Your Car Insurance Premium? Know More

Layman's Guide to Understanding Car Insurance

Know why your car insurance premium increases every year

Impact of Different Regions on Car Insurance Policy Premium

Factors to Consider When Buying a Car Insurance Policy