According to the Motor Vehicles Act 1988, every car owner must purchase a car insurance policy. However, a standard plan offers you financial protection against accidental damages caused to your vehicle or safeguards from third-party liabilities.
In this regard, opting for add-on covers to your comprehensive car insurance policy is beneficial. These covers may increase your overall insurance price but offer additional protection against damaged car components or other uncertain emergencies.
Several insurance providers offer different types of car insurance add-ons. Listed below are a few common types of additional insurance covers that help you extend the financial coverage available on a comprehensive car insurance policy:
Your car's engine may experience accidental damages and lead you to bear the extra repairing cost. In this regard, purchasing an engine protection cover can be useful.
Insurance providers deduct the depreciating value of your car and its components from the insurance claim amount while settling it. Under this add-on cover, you can lower the burden of incurring depreciation costs. As a result, it increases your insurance claim amount. This cover is ideal when you purchase a new car or own a vehicle under 5 years.
You may face a circumstance where your car has been stolen or is damaged beyond repair. In that scenario, the insurance provider provides you with the amount specified in your car's invoice. Therefore, with a small hike in the premium amount, you can receive substantial coverage to safeguard your finances in case of any accidents.
Being stranded in the middle of the road due to a sudden vehicular breakdown can be frustrating. Under roadside assistance cover, providers arrange services, including changing flat tires, towing the vehicle to the nearby garage for repair, etc.
Consumables like nuts and bolts, brake fluid, etc., extend the cost of repair. However, if you opt for this add-on cover, your car insurance provider will reimburse the consumables costs to lower your burden of bearing expensive repairing bills.
No Claim Bonus is a discount earned by a comprehensive policyholder for each claim-free year. As a policyholder, you can enjoy up to a 50% discount on the premium payments. This further reduces the overall comprehensive car insurance price. However, this discount becomes nil when you file a claim against your policy.
This add-on cover ensures that you do not affect your NCB when you file an insurance claim.
To conclude, add-on covers may increase your payments but widens the coverage of a standard comprehensive car insurance policy. However, before investing, make sure to go through the car insurance plans available on various online platforms. This will help you to up your financial planning game and make an informed choice of a suitable add-on cover based on your requirement.