Add-on covers in Car Insurance: Is it worthwhile?

Getting by without a car today is getting increasingly difficult. Every middle-class family owns at least one car to commute with convenience. And with an elevated standard of living and increased salaries, purchasing a car has become a lot easier than a decade ago. However, the actual cost is in maintaining said car to its optimum capacity for long.

Car insurance policies, apart from being a mandatory requirement by law, it is a huge boon for car owners as it helps keep the car and driver safe – legally, financially and physically. That said, most car insurance policies provide basic coverage that is not adequate for all-round protection. In such cases, add-on covers are the ideal route to take.

Car insurance add-on covers are additional benefits meant to strengthen your coverage. These covers provide extra protection for your insured vehicle and can be purchased along with your base policy. The cost of add-on covers is extra but minimal, usually coming up to 20% of the base policy. Below are some beneficial add-on covers that would enhance your standard car insurance policy:

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  Zero Depreciation cover: A zero depreciation policy reimburses the full claim to the insured without any depreciation cost to the value of car parts that are replaced in an accident.


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  Engine and electronic cover: Provides protection from accidental damage to the engine and other internal parts of the car like the gear box, power steering pump, and more. Especially beneficial during monsoons or in flood-prone areas.


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  Loss of baggage cover: With this cover, you can file a claim for the loss or damage of your personal belongings from a locked car due to theft or robbery.


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  NCB Protection cover: In case of no claims being raised in a financial year, insurers reward policyholders with a No-Claim Bonus (NCB). This benefit is then used to lower premium rates in the following year. It works quite simply: the more no-claim years you accumulate, the bigger your discount on premiums is. The NCB is only reset when you file for a claim settlement.However, with NCB protection add on cover, you can preserve your accumulated NCB, even if you raise a claim.

Additional coverage is meant to enhance your existing policy protection. In that sense, the question of them being worthwhile remains moot. Improve the value of your car policy with useful add-on covers, but also keep in mind to only purchase those you truly need. Safe driving!

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