Most car insurers provide two kinds of motor insurance policies – a third-party liability policy and a comprehensive policy. The former compensates you against liabilities arising out of damage to the vehicle or property of a third party. The latter provides coverage for not just third party liabilities but also for your vehicle and its parts.
But, what if you need a motor insurance policy to provide you with some other benefits? Say, for instance, coverage for a passenger in your vehicle or assistance if you are stranded due to a car breakdown in a secluded place. Here is where add-on covers can be a boon.
As the name suggests, add-on covers in motor insurance policies add on or supplement your basic motor insurance and provide extended coverage, serving as additional protection to your insured vehicle.
Read on to understand a few add-on covers that are provided by insurance companies.
Nil depreciation cover
All cars and their parts undergo natural wear and tear with age and consistent usage. This results in the depreciation of the overall value of the car and its parts. Whenever you submit a claim to your car insurer, the settlement amount is calculated by taking into account this depreciation.
With the nil depreciation cover, however, the depreciation of your car and its parts will not be factored and you are eligible for compensation against the amount of claim that would have otherwise been subtracted due to depreciation.
This add-on cover is especially useful for owners of luxury cars, as the car parts of such cars are expensive. Also, new drivers will find this cover useful as they might be prone to accidents.
Conventional motor insurance policies would cover your insured vehicle and protect you against third-party liabilities. However, in case of an unforeseen eventuality, these policies might not protect your co-passengers or loved ones accompanying you in the vehicle.
A passenger cover add-on compensates for financial liabilities arising out of fatality, and temporary or permanent disabilities to passengers in the insured vehicle.
If you generally drive along with your family and loved ones, this policy can be beneficial for you.
Engine protection cover
The engine is the soul of your car, and a conventional motor car insurance policy might not cover you for damages to the engine if the insured car is not involved in an accident.
An engine protection add-on cover indemnifies you against expenses to repair the damaged engine of your car for a wide range of reasons. This includes harm caused due to leakage of lubricating oil, and mechanical or electrical breakdown of the engine due to water ingression.
Tyre protection cover
Tyres do get worn out due to continuous usage and exposure to chemicals, extreme temperatures, heat, cold, and corrosive materials on the roads. It is important to remember that worn out tyres can be disastrous to the safety of the car, spiralling them out of control.
And, replacing them could be an expensive affair. A tyre protection cover would compensate for any expenses that you incur in replacing damage tyres.
This is most useful if you drive often and drive late at night. Imagine what you would go through if your car breaks down suddenly in the middle of the night and you are left in a lurch. This is where a roadside assistance add-on can come in handy.
This facility provides services such as fuel delivery, on-site repair services, towing of your car to the nearest garage, taxi services to help you reach your destination, and changing flat tyres, among many others.
Loss of personal belongings
There can be times when your personal belongings, which include electronic equipment such as phones and laptops, can be left unattended in your vehicle. And they can be stolen from or damaged in your insured car. An add-on for personal belongings covers you against such losses.
However, you must remember that there could be certain conditions for you to avail such an add-on. For instance, if your belongings were stolen because of your negligence or your car not being locked, you might not be eligible for a claim.
In sum, there are a wide range of add-on covers that are provided by insurers. Some might be expensive, and not very useful. Hence, it is imperative that you analyze your requirements and select the ones that fit your needs in the best possible manner.