The Correct Way to Optimize Your Car Insurance with Add-Ons

Motor insurance is mandatory by law. The Motor Vehicles Act of 1988 lays down this requirement and thus, no bike or car owner can skip buying one. When selecting an insurance cover for your car, it is best if you select a policy that offers comprehensive and adequate coverage. Since legal compliance is essential, it is advisable to look beyond that to ensure coverage for damages too.

Thus, when selecting a car insurance plan, you can pick among the two alternatives of insurance covers. One being a third-party policy whereas the other a comprehensive plan. A third-party policy, also known as liability-only cover, safeguards against the legal liabilities that may arise due to accidents and damages. While a third-party cover has limited scope, comprehensive plans provide for the damages to your car along with customisable coverage. Such customisation is possible using the add-on feature in a comprehensive cover. This article mentions how you can optimise the coverage of your comprehensive car insurance policy to avail maximum coverage. But before that, let’s look at what are add-ons.

Add-ons in your comprehensive car insurance policy is an optional feature that helps enhance the policy scope. These insurance covers help cover those events that are excluded from a standard comprehensive plan. With such add-ons in your insurance coverage, the policy strengthens thereby covering different events, otherwise which shall be required to be paid from your pocket. However, you must keep in mind since they are optional features, they come at an additional cost, which in comparison to the coverage it offers is minimal. Here are five crucial add-ons to consider:

  • Zero-depreciation cover

The most useful add-on cover that helps take maximum advantage of your car insurance policy is the zero-depreciation cover. All vehicles are subject to depreciation that lowers its value with each passing year. This, in turn, impacts the insurance pay-out as it accounts for such depreciation when honouring a claim. With a zero-depreciation cover, the vehicle insurance company compensates for the damages without considering the effect of depreciation, in effect, increasing the compensation provided.*

  • Engine protection cover

Engine protection cover is another essential add-on that can help to protect against damages to the engine and it hefty repair costs. A comprehensive policy otherwise excludes the repairs to the engine as part of its coverage and such add-on can help include it in your policy. Moreover, this add-on is useful for those people who reside in flood-prone areas where water ingression is a common occurrence damaging the heart of your vehicle, i.e. the engine.*

  • Consumables cover

For someone seeking an all-round coverage for their vehicle, consumables cover is nifty way to ensure complete insurance coverage. As the name suggests, the add-on provides for coverage of consumable spares that are commonly required in repairs and replacement. This way, you can expect minimal out-of-pocket expense as most of the cost, either by way of standard policy coverage and by way of consumables cover is covered by the insurance plan.*

* Standard T&C Apply

With these add-ons, you can maximise the insurance coverage provide for your car. Thus, it is essential to consider review the add-ons at policy purchase and at the time of car insurance renewal online. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.