There are a few must-have auto insurance add-on coverages that are recommended by experts to improve your overall car financial protection and ensure you have a stress-free ownership experience.
Car insurance is considered an effective tool to protect your car financially against risks such as road accidents, vehicle theft or civil liability that may arise while driving. Although valid third party (TP) car insurance is compulsory for all vehicles driving on Indian roads, experts say few owners are aware that in standard car insurance only personal damage (OD) cover is payable.
Rakesh Jain, CEO of Reliance General Insurance, says: “Other losses such as engine damage due to flooding or depreciation in the value of replaced parts are not covered by the own damage cover, which can increase significantly owner’s liability in many scenarios.
There are a few must-have auto insurance add-on coverages that are recommended by experts to improve your overall car financial protection and ensure you have a stress-free ownership experience.
Zero amortization cover
As your car ages, its value depreciates over time and you may not be able to recoup the full cost of replacing auto parts. At the time of insurance claim, this results in partial recovery of the cost of replaced parts and may result in substantial liability for medium to major damage.
Jain says, “Nil Depreciation Supplemental Cover protects a person from that depreciation and extends coverage for repair costs as much as possible.
Motor protection cover
While modern cars are considered to be very reliable, according to industry experts, they are susceptible to hydrostatic lock damage when the car is driven through flooded areas, which can result in huge expense.
Jain explains, “Choosing additional engine protection coverage helps recoup the cost of repairs to his car’s engine in such situations and also includes scenarios where engine damage results from leaking lubricating oil. in the event of damage to the underside of the vehicle body.
Back to invoice
If your car is stolen or damaged beyond repair, it will not only cause a lot of mental stress, but also a big hole in your pocket. Therefore, having additional Invoice Return (ITR) coverage will provide full reimbursement of the final invoice value of the car in such situations.
In addition to the add-ons above, other important coverages include EMI protection, consumables coverage, claim-free bonus protection coverage, tire, key and rim protection coverage.
Jain adds, “It is advisable to compare car insurance policies for reasons other than cost and opt for these add-on covers based on the needs of the car and to protect yourself from countless expenses that may arise under different conditions. driving.”
