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Friday, September 27, 2019

Important Add On Covers To Consider While Buying Car Insurance


Basic car insurance or the 3rd party liability insurance type pays only for the Depreciated Car value for losses done due to accident or theft. Add on covers in car insurance offer additional protection and benefits towards your vehicle insurance. These extra covers can be purchased for better financial car protection during damages or loss. 


Best Add On Covers

There are different types of add ons that can enhance your car insurance. Some of them are as follows -
·         Understand No Claim Bonus and NCB Retention Add on Cover

No claim bonus or NCB in car insurance is a discount (ranging between 20% and 50% on own damage (OD) premium or own premium amount). This bonus is given by an insurer to a policyholder as a reward for their supportive driving behavior and making no claims during the policy term. NCB Retention Add on Cover valid only on annual policies, this add on cover safeguards insured person’s NCB even on their own damage during policy term. This add on cover is provided if a policy renewal is performed with a company within 3 months of policy NCB expiry date. NCB of the insured is protected in case of one own damage during the policy term. Keep in mind that claim amount should not go higher than 25% of IDV.

·         Zero Depreciation

A new car owner highly benefits using this add on cover as insurance providing company is responsible to accept the total cost of repair without considering the depreciation factor while making a claim. The standard car insurance plan reduces the depreciation value of vehicle components such as wood, metal, fibreglass, etc.

·         Consumable Cover

Minor items such as nuts & bolts, lubricants, etc refilled or replaced during car repair are called consumables. Consumable cover pays for the cost of consumables refilled or replaced due to accident. All consumables such as gear oil, engine oil, lubricants, nuts & bolts, and others are included in this cover.

·         Roadside Assistance

Whenever you get in a trouble on the road, you can simply call your insurance company. Under this add on cover, you’ll get a certified mechanic to repair the car on the particular place. In case, the damage is not handled by a mechanic, insurer will bring a towing car for you and take the full care of your own car.

·         Engine Protection Cover

This cover will pay only for engine repairs no matter if the damage is caused due to any natural calamity such as flood, etc.

·         Total Cover

The total amount invested on the Octroi, registration fee, or other charges by any government authority is paid by this add on cover. This cover also pays for insurance premium.

·         Loss Of Personal Belongings

To cover the loss of personal belongings you lost in an accident, you must choose this type of cover. Please note that terms and conditions of this cover differs from one insurer to another. 

The cost of every add on differs based on the age and make-model of the car. Higher the number of add ons, higher will be your premium.

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