Top Car Insurance Add-Ons For New Cars In India 2024

Updated On: 2024-03-22

Author : Team Policybachat

Did you know that despite careful driving and maintenance, every new car in India is subject to unforeseen risks on the road? That’s where car insurance add-ons step in, offering an extra layer of protection tailored to your vehicle’s needs. In this article, we unveil the top car insurance add-ons essential for safeguarding your new ride and ensuring peace of mind on the roads.

What is an Add-on Cover in Car Insurance?

An add-on cover also known as a rider, is an optional feature that can be added to a standard car insurance policy to enhance its coverage. These add-ons provide additional protection beyond the basic coverage offered by the standard policy. Add-on covers typically address specific risks or offer extra benefits that may not be included in the standard policy. These add-on covers can be customized based on the individual needs and preferences of the policyholder, offering an extra layer of security and peace of mind while on the road.

Benefits of Car Insurance Add-On Covers

Car insurance add-on covers offer a range of benefits that go beyond the standard coverage provided by basic insurance policies. Here are some key benefits:

  • Enhanced Protection: Add-on covers provide additional protection against specific risks or incidents that may not be covered under a standard car insurance policy.
  • Customized Coverage: Add-on covers allow policyholders to tailor their insurance policies to suit their needs and preferences. They can choose specific add-ons based on their driving habits, vehicle usage, and the level of protection required.
  • Financial Security: Add-on covers provide financial security by offering compensation for various damages, repairs, or losses that may occur due to accidents, natural disasters, or other unforeseen events.
  • Peace of Mind: With add-on covers, policyholders can enjoy peace of mind knowing that they have comprehensive protection against a wide range of risks on the road.
  • Value for Money: While add-on covers may involve an additional premium, they often offer excellent value for money by providing extensive coverage and benefits. Policyholders can save money in the long run by avoiding hefty expenses associated with repairs, replacements, or legal liabilities.
  • Additional Services: Some add-on covers may include additional services such as roadside assistance, emergency support, or alternative transportation arrangements in case of accidents or breakdowns. These services enhance the overall customer experience and ensure prompt assistance during emergencies.
  • Retained No Claim Bonus (NCB): Certain add-on covers such as NCB protection, allow policyholders to retain their accumulated No Claim Bonus even after claiming during the policy period. This helps maintain or increase the NCB discount on future premium payments.

Top Must-Have Car Insurance Add-Ons for Brand New Cars in India

For brand-new cars in India, it’s crucial to ensure comprehensive protection right from the start and it is mandatory to purchase insurance as per the motor laws of India. However, many individuals don’t know they can also enhance their insurance coverage while purchasing a new car insurance policy, particularly comprehensive or own damage coverage. Here are the top must-have car insurance add-ons tailored specifically for new vehicles in India:

  • Zero Depreciation Cover
  • Road Assistance Cover
  • Engine Protection Cover
  • Consumables Cover
  • Return to Invoice (RTI) Cover
  • Key and Lock Protection Cover
  • No Claim Bonus (NCB) Protection

Zero Depreciation Cover - Get 100% Coverage

Zero Depreciation Cover, also known as Nil Depreciation or Bumper-to-Bumper insurance, is a popular add-on in car insurance policies and it offers significant benefits to car owners, especially those with brand-new vehicles.

When you purchase a new car, its value depreciates over time due to wear and tear. In the event of an accident, the insurer usually deducts the depreciation value of the damaged car parts before settling the claim. However, with Zero Depreciation Cover, you can receive the full cost of repairing or replacing these parts without considering depreciation.

Road Assistance Cover - Emergency Assistance Anywhere

Road Assistance Cover is a vital add-on feature in car insurance policies. This add-on cover provides prompt help to drivers in various roadside emergencies including vehicle breakdowns, flat tyres, battery jump-starts, and towing services, ensuring you stay safe on the road.

Imagine you’re driving on a remote highway and your car suddenly breaks down due to a flat tyre or engine failure, with Road Assistance Cover you can simply call the provided helpline and a professional will be dispatched to assist you.

Moreover, Road Assistance Cover isn’t just for mechanical failures. It can also help if you lock yourself out of your car, run out of fuel, or encounter any other unexpected issue that leaves you stranded. In essence, Road Assistance Cover offers peace of mind and reassurance to drivers, knowing that help is just a phone call away, no matter where or what problem they encounter on the road.

Engine Protection Cover - Prevents Costly Repairs

Engine Protection Cover offers financial security and peace of mind against unexpected engine damage. Imagine, you’re driving your brand-new car through heavy rain when suddenly, you encounter a deep pothole, causing significant damage to your car’s engine.

Without an Engine Protection Cover, repairing or replacing the damaged engine can lead to hefty expenses, potentially running into thousands of rupees. However, with Engine Protection Cover, you’re shielded from such financial burdens.

The insurer covers the repair or replacement costs of the damaged engine, ensuring that you’re not left stranded with a hefty repair bill. Moreover, the Engine Protection Cover isn’t just for accidents, it also extends to other unforeseen events such as engine seizures, water ingression, lubricant leakage, etc.

Consumables Cover - Repair Cost Savings

Consumables Cover is a beneficial add-on to your car insurance policy that many overlook but can save you significant costs during repairs. This cover specifically addresses the replacement cost of consumable items like engine oil, coolant, nuts, bolts, and other similar components that are typically not covered under standard insurance plans.

In real-life scenarios, imagine your car is involved in a minor accident that damages the radiator, leading to a coolant leak. With Consumables Cover, the insurance will cover the expenses of refilling the coolant, saving you from an unexpected financial burden. This add-on ensures that you’re not caught off guard by these often-overlooked expenses, providing peace of mind and financial protection when you need it most.

Return to Invoice (RTI) Cover - Financial Protection after Theft

Return to Invoice (RTI) Cover is an add-on that ensures you receive the original invoice value of your vehicle in case of theft or total loss. Imagine you’ve recently purchased a brand new car worth Rs. 10 lakhs. Unfortunately, a few months later, your car gets stolen. With RTI Cover, instead of receiving the depreciated value, which might be significantly lower, you’ll get the entire Rs. 10 lakhs back. This coverage effectively bridges the gap between the market value and the initial purchase price, offering financial protection and peace of mind.

In real-life scenarios, RTI Cover proves invaluable. Consider a situation where your car is involved in a severe accident, resulting in irreparable damage. Without RTI coverage, your insurance payout might not suffice to purchase a new vehicle of the same make and model. However, with this add-on, you can reclaim the original invoice amount, ensuring you can replace your lost car without enduring a financial setback.

Key and Lock Protection Cover Safety Net for Car Keys

The Key and Lock Protection Cover serves as a vital safety net for car owners, safeguarding against the inconvenience and expenses associated with lost or damaged car keys. In real-life scenarios, this add-on proves its worth when faced with situations like accidentally locking keys inside the car or losing them altogether.

Imagine a hectic day at work when you absentmindedly lock your keys inside your car. Without this add-on, you might find yourself stranded, facing the hassle of arranging alternative transportation and potentially incurring hefty locksmith fees. However, with Key and Lock Protection Cover, you can swiftly contact your insurer for assistance. They’ll arrange for a locksmith to help you gain access to your vehicle without any out-of-pocket expenses.

Moreover, in the unfortunate event of losing your car keys entirely, the cover provides financial relief by covering the costs associated with obtaining a new set of keys. This not only saves you from the stress of dealing with unexpected expenses but also ensures that you can quickly regain access to your vehicle without significant delays.

No Claim Bonus (NCB) Protection- Maintains Discount after Claim

No Claim Bonus (NCB) Protection is a valuable add-on cover in car insurance that rewards policyholders for safe driving by offering discounts on premiums for every claim-free year. This protection ensures that even if a claim is made during the policy term, the accumulated NCB remains intact, allowing policyholders to maintain their discount upon renewal.

Let’s consider a scenario where a driver purchases a brand-new car and opts for NCB Protection. Throughout the year, the driver maintains a clean driving record without making any claims. At the end of the policy term, the driver is eligible for a significant NCB discount on the premium for the following year. However, due to unforeseen circumstances, such as a minor accident or damage to the vehicle, the driver needs to file a claim. With NCB Protection, despite making a claim, the driver retains the accumulated NCB discount, resulting in lower premium costs for the next policy term. This ensures that the driver is rewarded for safe driving behaviour despite encountering a claimable event, making NCB Protection a valuable asset for new car owners seeking to minimize insurance costs while maintaining comprehensive coverage.

Wrapping Up

Selecting the right add-on covers for your new car insurance policy is crucial for ensuring comprehensive protection on the road. From zero depreciation cover to roadside assistance and NCB protection, each add-on offers unique benefits tailored to address specific risks and enhance your peace of mind. By carefully considering your driving habits, vehicle usage, and individual needs, you can customize your insurance coverage with the top add-ons, safeguarding your investment and driving with confidence knowing you’re well-protected against unforeseen events.

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