What is the crucial add-on covers to consider for car insurance?


Buying four-wheeler insurance is mandatory if you wish to drive on the Indian roads. According to the Motor Vehicle Act of 1988, all the owners must have the basic third-party liability cover. It protects the interest of the third-party individual, their vehicle in case of an accident. While such coverage is essential, it is not enough. Car insurance should cover your four-wheeler, the parts of the vehicle, and the passengers travelling along. All the insurers offer a range of add-on covers, and the premium of the policy depends on the ones you select.

If you opt for comprehensive car insurance online or offline, you have the choice of customising it. While buying the plan, consider the following add-on covers –

  • Personal accident cover:

There are two kinds of benefits that insurance owners can get from the personal accident cover – coverage for the driver and the passengers. If there is an accident, this cover safeguards both, and it handles the hospitalisation costs as well as the medical fees, owing to the injury or worse, death. The insured party receives a fixed sum according to the terms of the four-wheeler policy. Usually, you can add a specified number of passengers under one plan.

  • Zero depreciation cover:

It is a trendy cover and is also called as bumper-to-bumper cover. This add-on is available across all segments of cars. A zero depreciation plays an essential role in claim settlement ratio and reimbursements. When the insurer pays for the claim settlement amount, they deduct the depreciation value of the four-wheeler as on that day. Therefore, no insurer offers to pay the entire claim amount. However, if you opt for this cover, then the depreciation factor is not considered for claim settlement calculations. Such protection is ideal for those vehicles that are less than five years old.

  • No Claim Bonus cover:

It is a discount offered by the insurance companies at the time of car insurance renewal. If you experience a claim-free year, you are subject to no claim bonus. However, if you claim even once, the NCB is not applicable. You can use the NCB discount while renewing the policy and can be accumulated up to five years. The discount ranges from 10 per cent to 50 per cent. By claiming the NCB, you receive a discount on the premiums.

  • Roadside assistance cover

If the vehicle experience breakdown while travelling on city roads or highway, immediate assistance is a must. If you are in a remote area where getting a mechanic is tricky, the cover is a boon. You can call the insurer and inform about the scenario. The insurer either arranges for towing or organises for garage service with its network garage. Some offer it as a part of the policy, or you can buy it as an add-on cover.

The best part about add-on covers is they offer all-round coverage to you, your vehicle, and your loved ones. They reduce the financial liabilities significantly. If you opt for online car insurance, you can compare different plans and buy the one that meets your needs.