Choose the right add-ons to enhance your car insurance coverage

A comprehensive motor insurance policy which covers third party liability as well as damage to one`s own vehicle is a must to safeguard against expensive repairs or replacement of the car in case of total damage. Often, a basic policy may not suffice when faced with high repair bills. In such a case, add on covers or riders available with your normal policy can stop an accident or vehicle breakdown from burning too deep a hole in your pocket. Typically, a basic policy insures the vehicle for a certain value termed as the Insured Declared Value. In case of an eventuality, the maximum claim settlement amount is equivalent to the IDV. Add on covers provide extra protection to the policyholder, over the IDV, at an additional premium. Depending on the car model, owner`s profile and usage of the vehicle, one can opt for different types of add-ons, each of which are designed to augment the cover and deal with a particular situation.

The most common add-ons which can prove useful to any motorist are depreciation cover, engine protector and roadside assistance.
Depreciation cover is a recent innovation in the Indian auto insurance market, meant to protect policyholders from loss on account of depreciation of the vehicle.  In any normal motor insurance policy, the full value of the car is not covered. The insurer takes into account the depreciation cost ranging from 10-50 per cent depending on the age of the car and the part being replaced or repaired. However, depreciation shieldcovers the depreciation amount, partly or fully without deductions on the value of parts replaced. Moreover, this cover also applies to the repairing costs of fiber, glass, rubber parts and plastic which are excluded from normal auto policies. The validity of this cover varies from insurer to insurer, but mostly is applicable to cars which are not more than 3-5 years old. Thus under this cover, for a car, you can get the full claim amount without any deduction for depreciation on the parts being repaired/replaced. The premium difference between a basic policy and an add-on is the least in the first year. As the car gets older, the cost of the add-on does tend to rise.
An engine protector cover secures you against certain kinds of damage to the engine and gear box which are not included under a normal policy like consequential damage due to water ingression or leakage of lube oil. You can also opt for 24/7 roadside assistance services. This would save you much hassle in case of a car breakdown by providing access to a host of benefits. Towing facility to the nearest garage, assistance for changing a flat tire, transport of occupants through a hired cab, accommodation benefits in case of long distance travel, spare keys in case the keys are lost or locked inside the car, fuel assistance in case of a dry tank are some of the most useful services that you can avail of with this cover. Such cover is advisable particularly for women drivers and the elderly as well as those who have frequent intercity travel and thereby higher chances of getting stranded in remote areas. Yet another cover which can protect you from substantial financial loss, especially if you own a high end car is return to invoice. This plan would provide you with the invoice value of the car (the cost of a new car of similar make) in case of total damage or theft. Since the replacement cost of a luxury car would be huge, this can be very handy. A traditional policy on the other hand, would only give you the IDV calculated after deducting depreciation. No Claims Bonus protector is also a useful cover for expensive cars. This allows the policyholder to avail of NCB benefit even if a claim has already been made in the same year. This is very useful as the even a minor repair for a luxury car is extremely expensive.Some insurers also provide a daily allowance cover for the duration when the car is at the garage for repairs. If you are engaged in a field job or use your car extensively every day, this could be the cover for you.
Each rider comes at a cost. If you blindly go in for everything suggested by the agent you would end up spending a huge sum for irrelevant ones. Understand your requirements, evaluate the options available and then go for riders which would really augment the cover. The easiest way to do so is check the various online portals, carry out a comparative assessment and then take a judicious decision.