Understanding The Various Add-Ons Available For Your Car Insurance Policy
Nowadays, car owners insure their car without giving a second thought and end up in a financial trouble at the time of claim. If you are looking for a car insurance policy, then it is significant you also know about various add-ons that provide you enhanced protection with your base comprehensive car plan. Though you may be under the impression that insuring your car with comprehensive cover is enough to offer you adequate coverage, but in reality, it isn’t. You may instead end up bearing the expenses of the crucial liabilities that are not covered under a comprehensive car plan. So by paying a little extra premium, you can avail an additional protection for your four wheeler.
Read about various add-ons available for your car insurance policy
Zero depreciation: Known as bumper to bumper or nil depreciation cover, this cover entitles you to receive full coverage, negating/minus the depreciation factor. At the time of claim settlement, insurance company takes into account the value of depreciated car parts such as metal, wood, fiberglass, etc. it does not cover replacement value of such parts. But having a zero depreciation cover offers you 100% coverage for all the parts of the car without factoring in deduction for depreciation. Excess/deductible mentioned on the policy schedule has to be borne by you.
Return to invoice: Buying a return to invoice cover for your car ensures you are eligible to receive full coverage towards the amount you pay for purchasing the car. You will receive the differential amount between the Insured Declared Value and value of the vehicle as per the first sale invoice of the insured vehicle and this is in addition to the first time registration charges and road tax incurred on the vehicle. Unlike a comprehensive policy, this cover not just compensates you with the insured declared value. Ideally, this add-on is offered only for brand new cars.
NCB protection: For every claim free year, you are eligible to receive a discount of up to 20%-50% on car insurance renewal in the form of a no claim bonus. A single claim in a year can make you lose out on the no claim bonus and you will instead end up paying a higher premium at the time of renewal. But with a no claim bonus protection cover, you can preserve the discount even when you make a claim. Benefit would be applicable for upto 3 claims during the policy duration..
Key replacement: This cover will compensate you in case of loss of theft of the cars keys. If you need to replace the keys of the car, the insurer will provide you coverage for the same. However, if the keys are lost due to the act of theft, then an FIR stating the same has to be registered and submitted to the insurance company.
Emergency Roadside assistance: With this add-on cover, you are eligible to receive round the clock assistance with services such as towing, refuelling, change of tyre and others. In case if your car breaks down on a highway, you simply need to call the insurance company and can avail on the spot service for its repair. And if the damages are beyond repair, the insurance company would tow the vehicle to the nearest garage.
Add-on covers provide you enhanced protection and can help you save a lot on additional expenses. Simply understand each cover and its benefits and analyze your requirements before making a pick.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.