It is compulsory to avail a motor insurance policy if you have your own vehicle and you should renew that policy each year. Availing motor insurance helps protect your vehicle against the financial consequences of an accident, theft or loss in the event of natural calamities and so on. But, many citizens commit mistakes while availing motor insurance in a hurry. Before availing a motor insurance policy, you must spend enough time to understand the policy. In this blog, we will discuss the various Add-On Covers for motor insurance.
No claim bonus is an offer provided by the insurance company to the policyholder who has not made a single claim during the term of the insurance policy. The policyholder can avail this discount at the time of renewing the policy. You can accumulate no claim bonus for many years to get a good discount on the premium amount. But, the drawback of no claim bonus is even if you make a single claim, you will not receive the bonus. You can avoid this by availing a NCB retention cover. In case of this bonus, if the claim filed by you is below a certain amount, you will be eligible for a given percentage of No Claim Bonus.
If you avail this add-on cover, the insurance company will provide emergency services such as refueling, towing, change of flat tyre, mechanic’s services in case your car breaks down and so on.
When you make an insurance claim, normal motor insurance plans deduct depreciation on replaced parts. If you opt for an add-on cover that offers the zero depreciation benefit, your insurer will not deduct depreciation on replaced parts. When you avail motor insurance, you can opt for this cover by paying a slightly higher premium. This cover should be availed only for the vehicle which is not older than 5 years or premiums will be high.
See Also: How to claim insurance on a stolen car?
You should avail engine protection add-on cover if you live in an area where there is constant flooding during the rains. This add-on cover provides protection in case your engine is damaged due to water ingression leading to hydrostatic lock. This cover also provides protection against leakage of lubricating oil and damage to the gearbox.
As road accidents are very common these days, you must avail personal accident cover. If you avail personal accident cover, you will get protection against any physical loss or disability during a car accident.
The normal insurance policy will not cover the damage caused to personal belongs such as a laptop, tablet, smartphone when the car is involved in an accident. So, if you avail personal belonging cover it will cover the loss of other personal belongings from your car.
If you feel buying a motor insurance is expensive, you can opt for a voluntary deductible. Under voluntary deductible, you need to share the cost of repairs in case of a claim.
This add-on cover provides you transportation costs, if your vehicle stays in a garage for more than 3-4 days for repairs.