There are a few indispensable car insurance add-on covers that are recommended by experts to enhance the overall financial protection for your car and to ensure you enjoy a stress-free ownership experience.
Car insurance is considered an effective tool to financially protect your car from risks such as road accidents, vehicle theft or third-party liabilities that may occur while driving. While having a valid third-party (TP) car insurance is mandatory for all vehicles plying on Indian roads, experts say few owners are aware that in standard comprehensive car insurance only an own damage (OD) cover is payable.
Rakesh Jain, CEO of Reliance General Insurance says, “Other losses like engine damage due to floods or depreciation on the value of parts replaced are not covered in own damage cover, which can significantly increase the owner’s liability in many scenarios.”
There are a few indispensable car insurance add-on covers that are recommended by experts to enhance the overall financial protection for your car and to ensure you enjoy a stress-free ownership experience.
Nil Depreciation Cover
As your car ages, its value depreciates with time, and you may not be able to recover the full cost of replacement of car parts. At the time of insurance claim, this results in partial recovery of the cost of parts replaced and can lead to substantial liability in case of medium to major damages.
Jain says, “A Nil Depreciation add-on cover protects one from this depreciation and expands coverage of repair costs to the fullest extent possible.”
Engine Protection Cover
While modern cars are considered to be highly reliable, industry experts say, there are susceptible to hydrostatic lock-related damages when the car is driven through flooded areas which can lead to huge expenses.
Jain explains, “Choosing an engine protection add-on cover assists in recovering the cost of repairs to one’s car’s engine in such situations and also includes scenarios where engine damage arises out of leakage of lubricant oil in case of underbody vehicle damage.”
Return to Invoice
If your car is stolen or damaged beyond repair, it will cause not only a lot of mental stress but also burn a big hole in your pocket. Therefore, having a Return to Invoice Cover (RTI) add-on cover will provide full reimbursement of the final invoice value of the car in such situations.
In addition to the above add-ons, other important covers include EMI protection, Consumable cover, No Claim Bonus Protection cover, Tyre, Key and Rim protection cover.
Jain adds, “It is advisable to compare car insurance policies on more than cost grounds and opt for these add-on covers as per the car’s requirement and protect oneself from myriad expenses that can occur in different driving conditions.”