When it comes to purchasing a vehicle insurance coverage, most people prefer to spend as little time as possible. They believe there are just two options available on the market: third-party liability, which is required by the Motor Vehicle Act, and comprehensive insurance.
However, there are numerous add-on covers that can significantly increase your auto insurance coverage for a small additional cost when purchasing or renewing your policy.
It is critical that you understand the importance of add-on covers in order to select the best add-on covers to expand your auto insurance policy coverage.
Zero Depreciation: Nobody wants to be in a scenario where they are surprised to learn that they would have to pay out of pocket to fix their damaged car, even if they have car insurance. However, no insurance policy provides complete coverage for your car in the event of a loss or damage in an accident. To avoid this, choose the No Dep. or Zero Dep. add-on, which allows you to make a complete claim on the value of repaired or replaced parts following an accident. Companies normally do not offer this type of add-on to cars older than 5 years because it is designed for new automobiles exclusively.
No-Claim Bonus Retention (NCB): As the name implies, this add-on serves as a safeguard for your NCB. The NCB is a prize for not filing any insurance claims in the previous year. People usually do not file claims and instead renew their insurance every year. The insurance company offers an incentive in the form of a reduction of up to 50% off the premium cost, which the firm will withdraw if the claim is made only once. So, even if you don’t make any claims, there is a provision for NCB retention.
Imagine you’re traveling home from work and your car breaks down somewhere in the middle of the night due to a lack of gasoline, a mechanical issue, or a dead battery. What do you do now? As the name implies, this add-on will help you get home in an emergency and will also look after your car. If you get this add-on along with your usual auto insurance coverage, you won’t have to worry about getting help if you’re traveling in a distant area or at night.
Personal Accident Coverage: With this add-on coverage, the insurance company protects both the owner and the hired driver in the event of an accident. Personal accident coverage can be added to a comprehensive vehicle insurance policy. This add-on provides you with a lump-sum payout in the event of permanent disability or accidental death as a result of an accident.
Daily Cash Allowance: In the event of a big accident, the process of having your automobile repaired is too lengthy, and your car may have to stay in the garage for days, weeks, or even more than a month, depending on the car’s condition. In that case, you must either take public transportation or rent a cab, which is an expensive alternative, especially if you are on a tight budget. As a result, the insurance company will cover the cost of such daily commuting expenses under this add-on.
There are also a plethora of different add-ons on the market, such as Return to Invoice, Engine Cover, and Key Replacement, that you can combine with your normal insurance policy. So, to improve your policy coverage, choose intelligently based on your needs.