5 Reasons Why You Should Consider Buying Car Insurance Add-ons With Your Car Policy

9 min read
Car Insurance

Financing car insurance is much easier these days. There are many car insurance companies offering amazing packages in their policies that enable policyholders to go for what according to them would be the best deal. Car insurance not only provides protection from the damages to the car but also relaxes the car owner’s financial burden for purchasing a car. However, if someone is opting for a car insurance policy, it is advisory they should go for certain add-ons that the insurance company provides against an extra premium. These add-on covers can turn out to be highly beneficial for a car insurance policyholder owing to the exclusive perks they bring.

Car Insurance

Listed below are the five benefits of car insurance add-ons which a car insurance policyholder can find to his own benefit:

  1. Offers Better Insurance Coverage: A standard car insurance policy will not cover parts of the car such as engine and gearbox components. Add-ons like Engine Cover will add these parts and cover your overall expense for any damage done to the car. This benefit can come off as the most important one because it covers the engine of your car, which is prone to damage due to waterlogging, overheating, etc. The heart of any car is its engine. Without it, a car is as good as a toy. Also, an engine is an expensive part to repair or replace. Therefore, keeping the engine safe should be the utmost priority of any car owner. Under a basic car insurance policy, damages sustained by the engine and gearbox of the given car are usually not covered. With the help of this add-on, though, the car owner can ward off his burden of paying the heavy expense on the engine. Engine protection add-on will provide cover for the damages done to the car engine such as engine malfunction, damages done due to water entering the circuit, leakage of engine oil, etc. Opting for the engine protection option can save you a good deal of money.

Car Insurance

There are certain limitations, however, in the protection accident cover add-on. A policyholder will not be entitled to get reimbursed from the insurance company if he was driving while being drunk or under the influence of drugs. Intentional accidents such as suicide attempts or using the car for any criminal activity too would deprive the car owner of availing this add-on benefit. Anyhow, these conditions are applicable to the standard cover as well.

Discounts on Premiums: A No Claim Bonus cover or NBC refers to the discount which a car owner would get if he does not make a claim on his car insurance policy in the previous year. The benefit will allow him a reduction in his premium payments for the insurance. Moreover, the discount continues to increase and can get upto 50% for five claim-free years.

On-site Repair Service: For every car owner, there comes the possibility of a situation that his car may get dysfunctional right in the middle of the road. The situation can go worse if this mishap happens in a remote place far off from the city. The roadside assistance cover will greatly help the car owner in this situation. This cover helps the policyholder in various ways. Firstly, you will not be required to pay the towing expense of your car because the insurance company will bear that for you. Secondly, apart from towing, this add-on cover will also allow you to get services for replacing a flat tyre or a dead battery, arranging for a car mechanic, etc. Basically, the roadside assistance add-on will cover all your problems related to the dysfunctionality of your car on the road.

Car Insurance

Cover For Depreciation: The zero depreciation add-on cover can be of great help. When you will be making a claim for the car in the near future, the car insurance policy provider will have to take into consideration the total cost of the parts of the car exclusive of the depreciation. This implies that there would be a deduction for the depreciation which a car undergoes over time.  Zero depreciation add-on is mostly provided to the cars which are less than five years old. So with a new car, this benefit would be most effective. By the help of this add-on, the insurance company will be bearing the depreciation cost of your car as well. Getting a thorough understanding of zero depreciation car insurance will make you understand why it is so beneficial for you.

Invoice Cover: In a standard insurance cover, the maximum amount of claim one can make is limited to the policy’s Insured Declared Value or IDV. RTI or Return To Invoice Cover add-on option bridges the apparent gap between the Insured Declared Value and the invoice value of the car. With this cover, the policyholder will get compensation equal to the showroom price of the car in case of Constructive Total Loss or Total Loss.

Having a good idea about add-ons, therefore, can be of great help to car owners. Be it zero depreciation car insurance or invoice cover, all car insurance including at least the aforementioned five add-on benefits ensure that a policyholder can be financially covered in the best way possible.

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