A car is no longer a luxury in 2021 but in fact more of a necessity. Since cities are ever-expanding with transport networks catching up to maintain connectivity, a car can help to travel in comfort. But when you own a car, its insurance cover is an added responsibility. Firstly, it helps to comply with the law and secondly it aids in safeguarding your vehicle against damages and accidents.
There are two main types of 4 wheeler insurance that you can buy – third-party and comprehensive plans. A third-party policy is a minimum requirement as per the Motor Vehicles Act of 1988. This policy offers coverage against legal liabilities that may become payable due to third-person injury and property damage. To compensate for a third-party policy’s limited coverage, you can opt for a comprehensive policy. With comprehensive four-wheeler insurance, you have benefits of protection against theft, natural perils as well as man-made disasters. Further, a comprehensive policy can also be customized to fit your requirements using add-ons.
Add-ons are additional policy features that be opted for an additional price. Since these features are optional, only those that add value to your coverage must have opted. Let us look at some of the popular add-ons that enhance your car insurance coverage significantly.
- Zero Depreciation cover
One of the most popular add-ons that policyholders prefer to opt for is the zero-depreciation cover. All motor insurance claims account for depreciation while being compensated. This depreciation on your vehicle substantially lowers the claim amount. With a zero depreciation or nil depreciation cover, you no longer need to worry about a lower claim being sanctioned due to depreciation on your vehicle. Its popularity has made many insurance companies offer this add-on as a bundled service in some insurance plans. If you haven’t purchased this add-on in your current plan, make sure to not miss during your next car insurance renewal.
- Engine Protection cover
The engine is regarded as the heart of your vehicle. Monsoon is one season where water ingression is heard of damaging the critical components of your engine. A standard comprehensive policy does not cover the damages to the engine. With an engine protection cover, damages like water ingression, oil spill, the mechanical or electrical breakdown are included in your policy’s scope. With this add-on, you no longer need to be worried about the hefty repair costs that otherwise will be required to shell out to repair the engine in case of breakdown or damages.
- No-claim bonus protection cover
No-claim bonus or NCB is the renewal benefit passed by the insurance company for not raising any claim during the previous policy tenure. This benefit goes on increasing with each consecutive claim-free policy year but resets to zero once a claim is made. To avoid such a hard reset restoring the premium to its original amount, an NCB protection cover can come in handy. With this add-on facility, you can make claims up to a specified number of times without having to lose your NCB benefits. The maximum number of claims permissible is specified in your policy terms.
Apart from the above three, 24X7 roadside assistance cover can help to tackle situations where you are stuck during a vehicle breakdown. These are some effective add-ons that help increase the coverage of your car insurance policy. Since they are over and above your standard comprehensive policy, remember they increase the car insurance prices. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.