Many of us buy car insurance online, select the cheapest option, and consider it a done deal. Also, most usually go with third-party car insurance because it is the minimum required. But when something like engine failure happens, that basic plan suddenly doesn’t offer much help. This is when you start wishing you had some of those optional add-ons. Add-ons are not just extras; they can actually cover the issues that end up costing you more.
5 Car Insurance Add-ons Worth Considering
Not all insurance policies are designed to handle real-world situations. That is why these five add-ons are worth knowing about:
1.Zero Depreciation Cover
Your insurer usually deducts a depreciation amount based on your car's age and part type when you file a claim for repairs or part replacement. This reduces the payout. However, when you have zero depreciation cover, the insurance company covers the entire cost of replaced parts without factoring in depreciation. This add-on matters because:
It is ideal for cars under five years old
It saves significant replacement costs, especially on parts like bumpers or plastic fittings
It is particularly useful after accidents where multiple parts need replacing
Example: A bumper replacement costing Rs 10,000 may only get Rs 6,500 under a standard plan due to depreciation. However, you will get the full Rs 10,000 if you have zero depreciation cover. This add-on may slightly raise your premium. However, the savings during claims are worth it.
2.Engine Protection Cover
A standard policy typically doesn’t cover engine damage resulting from issues such as water ingression or oil leakage. But an engine protection cover bridges this gap by protecting your vehicle’s most vital and costly component. This add-on is important because:
It helps in regions prone to waterlogging and heavy rains
It covers damages even when there's no direct collision
Real-life scenario: If your car stalls in a waterlogged street and water seeps into the engine, repairing or replacing parts can cost anywhere from Rs 40,000 to Rs 2 lakhs. You can avoid this financial shock if you have engine protection cover.
3.Roadside Assistance Cover
Imagine your car breaks down at night in the middle of nowhere. A roadside assistance cover (RSA) will make sure that you are never left stranded in such situations. This add-on offers services like towing, fuel delivery, flat tyre assistance, and battery jump-starts, all just a call away. This add-on is essential as it:
Offers 24x7 support, even in remote areas
Includes minor on-the-spot repairs
Some plans offer hotel accommodation or cab services if repairs take a long time
4.Consumables Cover
A standard car insurance policy typically doesn't cover consumables, such as engine oil, brake fluid, coolant, and nuts and bolts, during repairs after an accident. However, these items add up, and you have to pay out of pocket. The consumables cover reimburses such non-reusable items. This add-on:
Is perfect for new cars, where spare parts and service costs are high
Offers better claim settlement value during accidents
5.Return to Invoice (RTI) Cover
The standard insurance only pays the current Insured Declared Value (IDV) in the event that your car is stolen or declared a total loss following a major accident. This value is lower than what you originally paid. The return to invoice cover ensures you receive the original invoice value, including road tax and registration charges. The benefits of this add-on are that it:
Is best suited for cars under three years old
Protects you from steep depreciation within the first year of ownership
Bridges the gap between IDV and the on-road price you paid
Example: If your car was bought for Rs 10 lakhs and its IDV after two years is Rs 7.2 lakhs, you may face a Rs 2.8 lakh loss during theft or total damage. With RTI, the insurer pays the full Rs 10 lakhs.
Conclusion
Basic policies, such as third-party car insurance or a standard comprehensive plan, are a good starting point for financially safeguarding your car. They will cover you to an extent, but not everything. Real-life issues, such as a flooded engine or unexpected breakdowns, often fall outside the scope of what these plans cover. This is where add-ons come in. They are designed for situations that most drivers encounter at some point.
Always review your driving habits, vehicle usage, and region-specific risks before finalising your plan. Also, don’t forget that buying car insurance online offers easy comparison, better pricing, and instant policy access.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
