Purchasing a car is considered an essential milestone for anyone’s journey to financial success. With the number of road accidents due to reckless driving increasing, it becomes essential to protect your car with four-wheeler insurance. Most four-wheeler owners have insurance for cars because the law mandates it.
However, even standard comprehensive car insurance does not offer complete coverage. Policyholders can extend their car insurance coverage at an extra premium by purchasing add-on covers. Let’s examine some of the most essential add-ons in car insurance.
Important Add-Ons in Car Insurance
Zero Depreciation Cover
The value of a four-wheeler starts depreciating as soon as you take it out of the showroom.
When you raise a claim under your four-wheeler insurance, the depreciated value of the damaged four-wheeler or its parts is not compensated. This means you will have to pay the cost of depreciation sustained by your four-wheeler from your pocket.
To overcome this, insurance companies provide zero dep insurance cover (nil dep/bumper-to-bumper cover) that covers the depreciation of your four-wheeler. This add-on cover can easily be included in your standard car insurance plan at a very nominal premium.
Important Note: This cover can only be purchased for cars below 5 years of age and you can file a maximum of 2 claims under this cover during the policy’s tenure.
NCB (No Claim Bonus) Protection Cover
NCB is a reward that insurance providers give to an insured individual for not raising any claims during the policy year. NCB reward accumulates over time with up to a 50% discount on the insurance premium amount when you renew four-wheeler car insurance.
However, you can risk losing your NCB discount if you raise a claim. NCB protection cover allows you to make a “single” claim against your four-wheeler insurance policy within a policy year without affecting your overall NCB.
Consumable Cover
Consumables in four-wheelers include brake oil, screws, lubricants, engine oil, nuts and other items that wear and tear regularly, thus requiring replacements. Usually, a car insurance policy does not cover the cost of replacing and repairing these items.
This is where consumables add-on covers can help. This add-on cover compensates for replacing and repairing consumables damaged at the time of the insurance claim. Consumables cover is essential for four-wheelers as it helps your car run smoothly and covers expensive repairs and replacements of these parts.
Roadside Assistance Cover
Imagine you are driving your car, and it breaks down in the middle of the road. During such times, finding a mechanic can be challenging and expensive, leaving you in a state of panic. However, with a roadside assistance add-on cover in your car insurance plan, you can deal with such situations without hassle.
A roadside assistance cover protects your car from unexpected damages on the road. This add-on cover assists with flat tyres, fuel provision, minor repairs, provision for spare keys and battery breakdowns.
The insurance company sends a mechanic to repair the damage caused to your four-wheeler. Additionally, using road assistance add-on cover does not count as an insurance claim, keeping your earned no-claim bonus intact.
Return to Invoice Cover
Return to invoice or RTI coverage is an essential add-on you should consider when you buy car insurance. This add-on ensures that in case of losses beyond repair or total loss, the insured gets the entire invoice value of their four-wheeler, irrespective of the chosen insured declared value (IDV).
When a four-wheeler is deemed a total loss, the insurance provider pays the IDV amount, which is the market value of the car, after deducting the depreciation. However, a return-to-invoice add-on cover bridges this gap by covering the difference between the actual invoice value of the four-wheeler and the IDV.
Any road tax and registration charges are also reimbursed with the invoice value. Therefore, you can recover the full amount you paid for the four-wheeler, getting financial protection beyond the standard car insurance coverage.
An RTI cover offers peace of mind to four-wheeler owners, assuring them that their investment is secure and they can replace their damaged or lost four-wheeler with a new one without facing an overwhelming financial setback.
To Wrap It Up
It is essential to have comprehensive car insurance coverage for your four-wheeler to financially secure yourself while driving. By carefully considering and purchasing must-have add-ons in car insurance, including RTI cover, zero-dep covers, consumables cover, roadside assistance cover and NCB cover, you can protect your four-wheeler from uncertainties and risks.
You should also note that the add-ons provided under comprehensive car insurance plans will vary across insurers. For example, most online providers like Tata AIG offer the add-ons listed here, but some offline insurers may not.
So, it’s always best to check what add-ons are offered under a plan before you buy car insurance.
