Are add-on covers important for your car insurance?
Nutan Gupta
Last Updated: 15th December 2022 - 01:44 pm
Car is among one of the most prized possessions for an individual. Naturally, while buying a new car, one makes sure to buy all the necessary add-ons in order to protect his car from any major injury. Here are some of the riders one can purchase while buying a car.
| Rider | Benefit |
|---|---|
| Zero Depreciation | A zero depreciation cover does not factor in the depreciation and provides for the complete coverage of the vehicle. You will however have to pay the minimum deductible which is a fixed fee of Rs. 1000 for vehicles less than 1500 cc. The minimum deductible is higher if the vehicle is more than 1500cc. |
| NCB Protection | A NCB Protection cover is an add-on feature which will protect your no-claim bonus even if you have made a claim during the year. |
| Engine Protection | As the name refers, this cover is to protect your engine and electronic circuit cover especially during monsoons and at the time of flooding. Opting for this cover will help you save on major cost repairs |
| Roadside Assistance | Stuck in a remote location with a flat tyre? This cover will help you get roadside assistance no matter where you are stuck. There are times when you run out of fuel at an unknown location or face battery related issues, opting for this cover will give you all these benefits. |
| Daily Cash Allowance | If your vehicle stays in the garage for more than 3-4 days, the owner’s transportation costs are taken care of if he has opted for this cover. |
Now, the question arises, how many of these car insurance covers are important?
An add-on cover should not be bought only for the sake of buying it. Also, one should not spend unnecessarily by buying add-ons which are not required.
- A zero depreciation cover should be bought while you purchase a new vehicle.
- A roadside assistance cover should be bought if you drive a lot to far away places.
- The engine of any vehicle is usually the most expensive part of the vehicle. Even a small damage to the engine can prove to be very costly. So, it is very important for an individual to buy an engine protection cover. It can help you save a lot of money in case of damage in your vehicle’s engine.
Since add-on covers come at an additional cost, choose a cover wisely!
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Sachin Gupta
5paisa Research Team
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