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Are you fond of pizza? Then you must have added toppings of your choice to make your pizza more delicious, haven’t you? Your motor insurance policy, though compulsory, also comes with various facets which take your car or bike insurance to another level. The plan provides various additional covers which, when added, increase the scope of coverage available under the plan. These additional cover options require an additional premium payment and are voluntary.
There are various types of add-on covers which are offered with a car or a bike insurance policy. As such, you are spoilt for choice. But, given the additional premium involved, you must be careful about the add-on covers which you choose. Choose only those covers which are extremely important. Do you know which covers are important? Here is a list to help you find out:
Zero depreciation cover: As your car ages, its value depreciates. Moreover, the various parts of your vehicle are also subject to depreciation. For instance, the plastic and rubber parts of your car depreciate by 50% while the fiber glass parts depreciate by 30%. When you raise a claim in your motor insurance policy, the insurance company deducts the applicable depreciation and then pays a claim. As such, your claim is largely reduced due to the effect of depreciation. To protect against this low claim settlement, a zero depreciation add-on comes in handy. This cover, when opted, ignores the effect of depreciation when a claim is made and the insurance company pays the full claim without deducting depreciation.
Why this add-on is important?: A zero depreciation add-on protects your out-of-pocket expenses whenever a claim is made. Since the add-on nullifies the applicable depreciation, the company pays a higher claim. This cover is important in case of new cars and luxury cars where the cost of replacement of parts is very high and would not be feasible to be paid from your pockets.
Roadside assistance: How many times have you faced a vehicle breakdown in the middle of nowhere? Your car facing a breakdown is a common occurrence and if you are not prepared to deal with the breakdown, you can face multiple difficulties. Roadside assistance provides you help in case your car breaks down and you face any difficulty. A normal roadside assistance add-on covers a flat tyre, empty fuel tank, electrical breakdown on your car, towing facilities, spare key arrangement, etc. Moreover, the add-on also provides you accommodation and transportation facilities till your car gets repaired.
Why this add-on is important?: The cover gives a wide scope of coverage and provides any type of assistance in case of breakdown of your car. Since breakdowns are very common, having help at hand is quite beneficial. Moreover, a roadside assistance cover becomes all the more relevant in case of female drivers and old-age drivers who require help in case of a breakdown.
Engine protect: If water seeps into your car’s engine and damages it, such damages are not covered by a normal motor insurance policy. Having an engine protect rider allows such coverage. The engine protect rider covers the cost of repairing of the engine damaged by water.
Why this add-on is important?: Engine protect is important because it covers the cost of repairing the engine which is otherwise excluded from coverage. If you live in areas where water-logging in monsoons is a common problem, having this rider becomes important.
NCB Protect: Every year when you do not make a claim in your policy, you earn a No Claim Bonus (NCB) discount in the next year’s premium. This discount keeps on increasing for each subsequent claim-free year and goes as high as 50%. If you are in the higher discount brackets of 45% or 50% and you incur a claim, you tend to lose the entire NCB discount. The NCB protect rider saves your accumulated NCB even after a claim.
Why this add-on is important?: Since the add-on protects your accumulated NCB it saves on your premium outgoes. Thus, this rider is important.
Though there are other add-ons also available with a motor insurance policy like return to invoice, baggage cover, cover for personal items, etc. the above-mentioned are more important. These add-ons are economical and provide beneficial coverage. So, the next time you are considering add-ons for your vehicle, don’t forget to pick these important ones.
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