Experts propose a few essential car insurance add-on covers to improve the total financial protection for your vehicle and guarantee you have a stress-free ownership experience.
Car Insurance Add-on Covers
Car insurance is regarded as an efficient instrument for financially protecting your vehicle from dangers such as road accidents, vehicle theft, and third-party liabilities that may arise while driving. While possessing a legal third-party (TP) car insurance is required for all cars on Indian roads, experts say few owners are aware that conventional comprehensive car insurance only includes an own damage (OD) policy.
“Other losses like engine damage due to floods or depreciation on the value of components replaced are not covered under own damage protection, which may dramatically raise the owner’s obligation in many instances,” explains Rakesh Jain, CEO of Reliance General Insurance.
Experts propose a few essential car insurance add-on covers to improve the total financial protection for your vehicle and guarantee you have a stress-free ownership experience.
Coverage for Zero Depreciation
Your automobile’s value depreciates with time, and you may not be able to recoup the whole cost of automotive components replacement. This leads in a partial recovery of the cost of components replaced during an insurance claim and might lead to considerable responsibility in the event of medium to large losses.
“A Nil Depreciation add-on policy protects against this depreciation and increases coverage of repair expenses to the greatest degree feasible,” explains Jain.
Cover for Engine Protection
While contemporary automobiles are thought to be relatively dependable, industry experts claim they are prone to hydrostatic lock-related issues when driven through flooded regions, which may result in costly repairs.
“Choosing an engine protection add-on insurance aids in recovering the cost of repairs to one’s car’s engine in such cases and also covers scenarios where engine damage originates from lubricating oil leaks in case of underbody vehicle damage,” Jain notes.
Back to Invoice
If your automobile is stolen or damaged beyond repair, it will not only bring you emotional anguish, but it will also burn a large hole in your wallet. In such cases, having a Return to Invoice Policy (RTI) add-on cover will give complete refund of the car’s final invoice value.
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Other key add-ons include EMI protection, consumable cover, No Claim Bonus Protection insurance, and Tyre, Key, and Rim protection cover.
“It is essential to examine vehicle insurance plans on more than just cost grounds and pick for these add-on covers as per the automobile’s demand and protect oneself from countless charges that might come in different driving situations,” Jain continues.