Your car is one of your most priced possessions, hence taking good care of it is of utmost importance. However, today more than buying a car, maintaining it is more of an expensive process. Hence, that’s why car insurance policies have come into being to protect you from any financial contingencies arising due to the damages caused to the car.

A car insurance policy also covers damages caused to a third party or property. There are two types of car insurance policies-third party cover and a comprehensive cover.

A third party car insurance covers damages caused to a third party or property and personal accident cover for owner driver. Whereas, a comprehensive car insurance policy provides coverage towards loss or damage caused to your vehicle in addition to the third party liability cover and personal accident cover to owner driver.

But today one of the common mistakes people make while buying a car insurance policy is that they don’t spend enough time understanding the policy due to which they miss out on a plethora of coverages that come with an added advantage with a car insurance policy.

Unlike a few years ago, when car insurance was offered as a standard insurance policy, today they are offered with optional covers that provide extra facilities at an additional premium rate.

Here are a few add-on covers that you can buy with a comprehensive car insurance plan

Zero depreciation:

At the time of claim settlement, a standard car insurance policy only calculates depreciated value of certain parts of the car but not the replacement value. And, this won’t cover the full costs of the damages and you will have to splurge the rest from your pocket. But if at the time of buying a car insurance policy if you opt for a zero depreciation cover then you are entitled to receive the full claim with any deduction or zero depreciation. Also, you are eligible to use this cover for a minimum of two claims during the policy period. Generally, insurance companies provide a zero depreciation cover only for the first three years from the date of purchase.

Depreciation of the parts is calculated on the following basis:

Material Amount to be paid by the customer
Plastic/Rubber 50%
Fibre 30%
Glass 0%
Painting 50% (of painting material cost)
Consumables 100%
Labor 0%
Metal Upto 50%

The depreciation for metal parts is calculated on the following basis:

Age of vehicle % of Depreciation
Not exceeding 6 months Nil
Exceeding 6 months but not 1 year 5%
Exceeding 1 year but not 2 years 10%
Exceeding 2 years but not 3 years 15%
Exceeding 3 years but not 4 years 25%
Exceeding 4 years but not 5 years 35%
Exceeding 5 years but not 10 years 40%
Exceeding 10 years 50%

Consider this: Arun’s newly bought car met with an accident due to which the doors of the car were damaged. But Arun was not worried as he had a car insurance policy which would cover the damages. On contacting the insurance company, Arun was disappointed as he just received 40% of the amount of damages and the rest of 60% he had to pay from his pocket. Now, if he would have had a zero-deprecation cover then the company would have covered the total cost without depreciating the value of the doors.

No-claim bonus protection:

This cover is more like a reward for the policyholder if he does not many any claim throughout the policy term. Through this cover, the insurance company rewards the policyholder by offering them up to 50% discount at the time of the renewal of the policy. In the first year, up to 20% discount is offered which goes increasing every year till a maximum limit of 50%.  If you don’t have any claim bonus add-on then a single claim can bring down the discount to zero. The benefit of this cover is not available if you make more than one claim or if you have a total loss claim.

Roadside assistance:

In this type of cover, the policyholder gets round the clock benefit of services like refuelling, towing, change of flat tyre, mechanic’s services and others. In case if the policyholder is stranded in a remote location, then taxi and accommodation benefits are also provided.

Engine protection:

Primarily, the purpose of this cover is to ensure that the damage to your engine doesn’t burn a hole in your pocket. This type of cover provides for the protection of the engine so that the policyholder does not have to bear massive cost repairs. However, if there is a hydro lock or you are running a moist engine then the insurance company won’t cover damages for the same.

Return to invoice:

This rider provides you with the benefit of availing the full value of the vehicle in case of total loss or theft. This add-on benefit covers original invoice value including registration taxes and road paid tax.

Personal accident cover:

In the case of an accident, this add-on provides complete financial coverage in case of death, permanent or partial disability caused during an accident. Typically, this type of cover provides maximum coverage of up to 1 lakh and is subjected to vary from insurer to insurer. This cover provides protection to the policyholder as well as the paid driver.

Accident coverage for co-passengers:

This type of coverage provides financial coverage for co-passengers in case if during an accident any co-passenger dies or if there is any permanent or partial disability.

Daily allowance:

In case your car is stolen or is under repair then you are liable to receive a daily allowance of Rs. 500-1000 depending on the car model. You are not entitled to receive the benefit of this cover if your car is not repaired at an authorised garage or if it is under repair for less than three days.

Personal belongings:

If there is any theft or loss of any personal belongings from a locked vehicle then you are eligible to claim the amount for the same.

Key replacement:

You are eligible to receive compensation for a lost key if you have misplaced your key or is stolen. If there is a case of burglary then you will have to register a police complaint.

Strengthen your car insurance policy by opting for the above riders as per your budget, need and requirement.