Motor Insurance Add-ons Worth Exploring

For most of us, renewing our vehicle insurance policies is a no-brainer – we don’t really spend much time thinking it through. However, it’s advisable to not make the selection of your motor insurance policy an automatic “tick mark” exercise – doing so may lead to regrets when you need to exercise a claim. Here are a few add-ons you may consider buying. 

Zero dep 

A Zero Dep or “depreciation shield” cover is a must - especially as your vehicle gets older. Here’s how it works in case you don’t have the zero-dep cover add-on in place – if your vehicle does meet with an accident, a certain percentage of the claim amount is deducted as depreciation cost in case of plastic or rubber parts, or even paint. The actual quantum of the deductible goes up with each passing year, as depreciation increases year on year. If your airbags are released in the event of a collision, for instance, your entire dashboard will be replaced – and the cost could run into a few lakhs even for mid-segment vehicles. Having the zero-dep cover in place ensures that you’re reimbursed in full, without any deductibles. Unfortunately, most insurers do not provide this cover beyond a vehicle age of five years. 

Roadside assistance 

A simple add-on that could spare you a lot of trouble if you’re caught in a tough spot, the 24X7 roadside assistance cover is a sensible buy. The benefits of this add-on vary from insurer to insurer – ranging from help with a flat tyre or towing, to medical assistance. Either way, it’s a useful add on to have in place, and costs little too. You may choose to skip this is your car manufacturer already provides you with a comprehensive roadside assistance package – which is the case for most luxury car manufacturers. 

Engine protection 

A blessing in areas that are prone to flooding (such as Mumbai), the Engine Protection add-on covers consequential damage to your engine that may arise due to water ingression – a common occurrence in areas that receive heavy rainfall. This add-on also typically covers damage to the gearbox due to oil leakages.  

Tyre burst 

If you own a high-end car such as an Audi, Mercedes or a BMW, a burst tyre could cost you dearly. A tyre blowout could result from having over-inflated tyres, worn-out treads, road hazards and other factors. If you’re driving a luxury car, and your insurer gives you the option of a tyre-burst add-on, take it up! A blown-out tyre may potentially set you back by a lakh or more otherwise. 

NCB protection 

You may have accrued a sizeable NCB (No Claim Bonus) over the years, due to your impeccable driving record. Over a five-year period, this could have risen as high as 45 per cent, resulting in sizeable discounts on your renewal premiums. If you plan to hang on to your vehicle for a few more years, it would make sense to take up the NCB protector add-on. Put simply, this add-on ensures that your NCBs stay intact even if you were to make a claim. Beyond year three of your renewal, it’s a feature that makes quite a bit of sense – especially when you consider that according to the law of averages, three claim-free years may be followed up by a year or two when you’ll be needing to make a claim.