Motor insurance has evolved over the years, from providing standard motor insurance and base policy to optional add-ons. An add-on is additional protection to your motor that covers damages incurred to the engine or consumables.
Below are optional add-ons that can be bought, along with a car insurance policy. An important aspect to be mindful of is that these add-ons come at a negligible premium over and above the basic insurance policy. Nonetheless, it provides extended protection to your insured vehicle.
Roadside Assistance: This add-on assists the insurer in need of on-road help. Roadside assistance is provided to anyone who has opted for the add-on if they are stranded within a specific distance from the city as mentioned in the policy document.
It offers different benefits, such as getting the wheels fixed in case of tyre punctures, or towing your car facing engine damage, among others. Some insurance providers also offer taxi services to help you reach the destination.
Engine Protection Cover: Basically, a standard car insurance policy only covers damages caused during an accident. Usually, damage to the car's engine and gearbox is not covered.
Whereas, this add-on also covers damages in the car engine caused due to accident, or natural disasters.
Return to Invoice Cover: This add-on is available to new cars, or cars that are less than five years old. Insured customers with this add-on receive full compensation in cases like theft or damages beyond repair.
On the contrary to a normal insurance cover, in which the maximum claim that can be made is its Insured Declared Value (IDV ) – the depreciated value of the vehicle since usage – RTI covers the on-road price of the vehicle, without calculating its depreciated value.
Passenger Cover: While you protect your vehicle against different probabilities of loss, this motor insurance add-on ensures the protection of your family and loved ones.
Zero-Depreciation Cover: Depreciation is the decrease in the value of your car over time, caused due to factors like natural wear and tear. This add-on covers almost the entire cost of the parts that were replaced after the accident, without calculating the depreciation value.
Consumable Cover: Consumables are materials of your car that serve a specific purpose, and are entirely consumed in one use, usually replacement of nuts, bolts, grease, etc. With this cover, you can save on all those consumables that are unfit for further use, arising out of damage.
Tyre Protection Cover: An insurance that covers damages to tyres is also important, depending upon the road condition. This add-on covers your car tyre from accidental loss or damages, such as a bulge in the tyre, bursting of tyre and damage, or cut to the tyre, along with the replacement and labour charges.
The author is Chief Marketing Officer and Head of Direct (online) Sales at Digital Insurance