Strengthening Your Car Insurance
Comprehensive car insurance covers your vehicle against own damage yet you are not fully covered against accidents and theft
. Even if you want a claim for a car you bought not very long ago, you will get the claim for depreciated price. There might be other scenarios that may land you in emergency situations that cause a lot of inconvenience and expenditure like loss of keys, getting stuck on a highway due to breakdown.
Vehicle insurance companies are now offering add on covers over car insurance to fill these gaps. Add-ons are value added covers that you can specifically ask for over the regular comprehensive insurance depending upon your specific requirements. While comprehensive car insurance covers many risks on own damage part, add-ons now offered by car insurers can make the vehicle completely covered. They come for an extra price but prove handy in emergencies. Here are a few add on covers fast gaining popularity.
Zero Depreciation Cover
For a car, value is depreciated the moment you buy it. So if you need an insurance claim, you get it at the depreciated price. Depreciation also depends on the part of the vehicle, if it is rubber, plastic or metallic. Depending upon the part, depreciation may be anywhere between 10% and 50%.
If you take a zero depreciation cover your car parts will be covered for full value and not the depreciated price. You can opt for this add-on if the car is not more than 2-3 years old.
Back to Invoice Cover
Your car is almost new, hardly a year old and is stolen or is declared total loss after an accident. Normally the insurance company will pay you as per the IDV or the insured declared value that is the depreciated price of the vehicle. If you take back to invoice cover, in case of theft or total loss, your insurance company has to pay the price mentioned in your invoice at the time of buying the vehicle.
Back to invoice cover can be taken for car not older than 2-3 years depending upon the insurance company.
NCB Protection Cover
The moment you make a claim, the no claim bonus you have acquired over past years is lost and you do not get the NCB discount at the time of insurance renewal. And the whole process of accumulating NCB starts from scratch. You can protect no claim bonus acquired over the period by taking NCB protection cover.
With this add on you can avail the NCB discount even if you have made a claim in previous cover. You are entitled to this cover only once or twice during the whole tenure of insurance.
Roadside Assistance Cover
If you are stuck on a highway with a flat tire or vehicle breakdown, you will have to undergo a lot of trouble and may even have to pay a lot of money to get the vehicle moving again. Apart from the inconvenience, you will have to bear the cost of car towing, mechanic and hotel stay if it takes longer to rectify the problem.
Roadside insurance cover can prove to be very handy. The toll free number of the insurer can guide you to the nearest help available. The costs will be covered. It is specifically good for those who travel a lot by their own car.
Loss of Keys Cover
You have lost your car keys and need to replace them. The cost is enormous specially in case of a high end car. Loss of keys Cover pays the cost of replacement of vehicle keys and some even offer the cost of changing the locks if the car has been broken into.
There are covers like daily allowance cover if the car is in repair, personal belongings cover if the personal belongings are damaged or stolen from the car, hired driver cover if you have hired a driver for your vehicle.
Each add on to car insurance has its own importance but this does not mean you need to take all of them. They strengthen your car insurance and come at a price. Consider your needs and opt for those that are beneficial.
by: SjoerdN
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