Add-on covers in Car Insurance: Is it worthwhile?

By SiliconIndia   |   Wednesday, 29 August 2018, 15:12 Hrs
cmt right
Comment Right
cmt right
cmt right
Printer Print Email Email

Add-on covers in Car Insurance: Is it worthwhile?

Getting by without a car today is getting increasingly difficult. Every middle-class family owns at least one car to commute with convenience. And with an elevated standard of living and increased salaries, purchasing a car has become a lot easier than a decade ago. However, the actual cost is in maintaining said car to its optimum capacity for long.

Car insurance policies, apart from being a mandatory requirement by law, it is a huge boon for car owners as it helps keep the car and driver safe – legally, financially and physically. That said, most car insurance policies provide basic coverage that is not adequate for all-round protection. In such cases, add-on covers are the ideal route to take.

Car insurance add-on covers are additional benefits meant to strengthen your coverage. These covers provide extra protection for your insured vehicle and can be purchased along with your base policy. The cost of add-on covers is extra but minimal, usually coming up to 20% of the base policy. Below are some beneficial add-on covers that would enhance your standard car insurance policy:

  • Zero Depreciation cover: A zero depreciation policy reimburses the full claim to the insured without any depreciation cost to the value of car parts that are replaced in an accident.

  • Engine and electronic cover: Provides protection from accidental damage to the engine and other internal parts of the car like the gear box, power steering pump, and more. Especially beneficial during monsoons or in flood-prone areas.

  • Loss of baggage cover: With this cover, you can file a claim for the loss or damage of your personal belongings from a locked car due to theft or robbery.

  • NCB Protection cover: In case of no claims being raised in a financial year, insurers reward policyholders with a No-Claim Bonus (NCB). This benefit is then used to lower premium rates in the following year. It works quite simply: the more no-claim years you accumulate, the bigger your discount on premiums is. The NCB is only reset when you file for a claim settlement.However, with NCB protection add on cover, you can preserve your accumulated NCB, even if you raise a claim.

Additional coverage is meant to enhance your existing policy protection. In that sense, the question of them being worthwhile remains moot. Improve the value of your car policy with useful add-on covers, but also keep in mind to only purchase those you truly need. Safe driving!

Read more news:

ConnXus Partners with Basware to Ease Procurement Processes

Benefits of Having Multi Trip Travel Cover on Your Next Trip

Facebook-owned messaging app WhatsApp is still developing its previously announced "Vacatio..
The Reserve Bank of India injected a total liquidity of Rs 2.98 lakh crore in the market in 20..
Wiley, a global leader in research and education has announced a series of blended learning progr..
"Game of Thrones" author George R.R. Martin doesn't want season eight to be the final chapter of "..
The Pentagon has selected Microsoft and Amazon Web Services (AWS, the cloud computing arm ..
US Indian
Facebook-owned photo messaging app Instagram has launched the beta version of its in-app sh..
Google Pixel and OnePlus smartphones are catching up and giving stiff competition to Samsu..
Enterprise IT
Taking on streaming giants like Netflix and Hulu, Walt Disney Co. has announced it will laun..
Startup City
Youth are leading India's start-up ecosystem where the median age of founder-entrepreneurs..