Understanding Add-On Car Insurance Covers And How Much They Are Useful
You actually start feeling importance of your car insurance when standing in a garage and waiting for your damaged car to be repaired post an accident or in a police station reporting for your last car. This is what your car insurance plan does for you. Though you might feel much pinch on your pocket in scenario like this but still in most cases least 20% of the loss have to be borne your pocket only. This is because though your car policy is called a comprehensive but still there are many things which the basic cover of the plan doesn’t cover and that is where the Add on car insurance cover come as a great help. Though the extra premium that you pay for these add-ons may not be affecting your overall premium and but it always important to understand where to spend and where not so that you can get maximum benefit from your car policy.
To understand all these add-on covers let’s try to understand some important ones-
Road side assistance, the extra premium which your insurer might charge you for this add on may be only Rs.100 to Rs.200 for a particular term but at times it can become. Think of a situation you are out of fuel in the middle of highway or you have flat tyre or your car broke down in the middle of night and nothing is close to for help. This add-on becomes a help tool. As we analyze this would be very helpful for women drivers or old aged car owners. You at least have somebody to always call upon for your help in case of unforeseen emergencies like this.
So we feel it worth paying for this cover.
Zero depreciation, this is an add on cover which comes very handy in the initial years your car purchase but if it is an older car it doesn’t makes any sense. Generally policies bought without zero depreciation the insurer would deduct the depreciated value from the claim but that doesn’t happen in case when you have opted for zero depreciation. If we try to evaluate the add-on cover by getting into more minute details we find that the same has is more effective for cars with on road price higher than Rs.10 lacs because in this case the cost of parts are also on the higher side. Plus if you feel your driving habits are quite disciplined the add on is generally of no use to you.
Engine damage add on, this particular add-on is generally priced in the range of Rs.600 to Rs.1000 so technically it is not a huge to your base premium but is it worth investing that money. Engine damages generally happening due to unwanted events other than accidents are not generally covered under your base cover. Mistakes like running the ignition in a state when the car is already drowned in water which happens due to careless can lead to engine damages for which you need this particular add on cover. But if you consider a regular the add on is generally of no use to you.
Consumables cover, this may an important add on to look into. Things like engine oil, brake fluid, coolant and minor nuts and bolts which form a large part of any repair cost are generally not covered by the base cover of the policy. So even if you get a claim for repair for accidents all these consumables are to be paid out of one’s own pocket and so this particular add-on cover makes a large to be applied while renewing car insurance policy every time whether done online or offline.
Other than the above add on there are lot of other add cover like Daily garage allowance and accident cover for passenger which any policyholder can apply for but it doesn’t makes sense to wasting money into them. So to make an effective car insurance buying decision, you need to analyze factors like driving habits, cost of your car etc to build the right construct of the policy with the right base cover and the correct add-on.
Effective decision making needs effective comparison between many car insurance plans offered in the market online and then as per need and affordability selects the right one.