Add-On Covers For Your Car Insurance Policy

Posted on: Sep 17, 2018 | 3 mins | Written by: HDFC ERGO Team

Add-On Covers For Your Car Insurance Policy

A few years ago, insurance companies used to offer a standard insurance cover, but with changing times, even the insurance companies seem to have evolved. Today there is no dearth of options to choose from when it comes to additional premium along with your basic car policy.

What is an Add-on Insurance for a Car?

Car insurance add ons, as the name suggests, offer insurance for several damages or occurrences in addition to the benefits that a comprehensive motor insurance policy offers. Clearly, it is a great way to make your vehicle insurance work a lot better for you. Depending on the type of car you own, each available add-on has the potential to save a huge amount of your money, which you may otherwise have to pay from your pocket at the time of making a claim.

Here are some HDFC Ergo car insurance add-on covers that you may consider purchasing for your existing insurance policy:

1. Zero depreciation

One of the most recommended add-ons, it authorises you to claim the full cost of replacing parts of a car damaged in an accident. As per your standard motor vehicle insurance policy, you only receive the depreciated value of car parts, not the original value. Usually, the insurance companies deduct depreciation from the value before they settle the claim. A ZERO DEPRECIATION CAR INSURANCE ADD-ON helps you recover a full claim without any such deductions. However, most of the companies provide this cover only to vehicles which are up to 5 years old.

2. Engine Protection

This is considered relevant for owners of high end cars and is usually available for cars that are up to three years old. An engine protection cover compensates for engine related repairs, even if they are not caused by an accident. Since the cost of repair of a damaged engine can go invariably high, this add-on can be very useful and worth spending money on. It should be noted that it does not cover the damages due to regular wear and tear or any damages caused by your own negligence.

3. Return to invoice

Purchasing a return to invoice cover in car insurance ensures that in case of loss or theft of your car, you get the original invoice value, including the registration cost and taxes and not the insured declared value. Such add-on plans pay the difference between the approved claim amount and the original cost of the purchase of your car. This cover is highly recommended for theft-prone areas or people who drive on long highways. This cover is also available for vehicles up to three years old.

4. Roadside assistance

With this add-on cover, the insurance company provides certain services round the clock like refuelling, towing, arranging a mechanic or getting a flat tyre changed and much more in case of a car breakdown. Certain companies offer it as an add-on cover and a few others are offering it under the basic motor vehicle insurance plan.

5. No claim bonus protection

When you drive carefully and don't have a claim requirement, the insurance provider rewards you by giving you a bonus called the no-claim bonus (NCB). It is a discount you get on the following year’s car insurance premium. This accumulates every year and can also go up to 50%. However, if you make even one claim, the entire NCB will become zero. The NCB protection rider allows you to keep your NCB intact even if you make a claim and this proves to be very beneficial.

6. Daily allowance

If your car has broken down or been damaged in an accident, you will need to send it for repairs. While that happens, you are left without a vehicle and will have to depend on public transport to get to your destinations every day, which can be expensive. The daily allowance rider offers a fixed sum of money to you for each day your vehicle is away for repairs. This proves to be very handy and financially helpful.

7. Consumables cover

The consumables of your car include lubricants, engine oil, brake oil, nuts & bolts, washes, AC gases, etc. These components are not included in the car insurance cover, so any damage or wear and tear to the consumables are excluded from the policy. However, with the consumables cover rider, you can get these components covered.

FAQ’s

1. Is comprehensive car insurance compulsory?

No, it is not compulsory for you to get a comprehensive car insurance plan. A basic third-party plan is mandatory. However, it is wise for you to opt for a comprehensive cover because it offers well-rounded and wholesome coverage. You can also attach add-on covers to your comprehensive car insurance plan and make it tailor-made for your requirements.

2. How does a rider impact my car insurance premium?

Add-on covers in car insurance are available at an added cost. So, for every rider you buy, the insurance premium will increase. The higher the number of riders, the more insurance premiums you have to pay.

3. Who should opt for a car insurance rider?

Everyone can benefit from getting some good car insurance add-on covers. However, if your car is new and expensive, you should definitely get a few riders to keep it extra safe and protected.

4. Do I need every single add-on cover?

No, you do not need to buy every single car insurance add-on cover. Check your needs and see which riders would be of the best use to you and only invest in those additional covers.

Conclusion

If you are looking to BUY CAR INSURANCE with these beneficial add-ons, you can easily buy these online at the HDFC ERGO website. The website makes online purchasing extremely quick and easy. All you need to do is log on to the website, fill up the form and check on the riders you would like to add and pay. The policy will be emailed to you within minutes which you can download or take a print of as and when you need.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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