In this complete guide, we explain what car insurance add-ons are, why they matter, the different options available, and how to choose suitable coverage based on your vehicle usage and financial priorities.
What are add-ons in car insurance?
Car insurance add-ons are optional covers that enhance the scope of protection offered by a comprehensive policy. These extensions provide financial support for specific risks that are not covered under third-party car insurance, making them valuable add on covers in motor insurance for modern-day driving conditions.
Are add-ons in car insurance mandatory?
Car insurance add-ons are entirely optional. In India, the only legal requirement is to have third-party insurance, as per MVA 1988. This covers the damage you might cause to other people or their property, but it doesn't protect your own car at all.
Think of comprehensive car insurance as your base layer of protection. While the law does not force drivers to opt for add-ons, many drivers find them essential for peace of mind. Without the right add-ons, you might find yourself paying for expensive repairs out of your own pocket, even if you have a policy.
To know the difference between third-party insurance vs comprehensive car insurance
Types of car insurance add-ons
Understanding the add-ons allows you to avoid unnecessary covers and select only those that genuinely add value.
Below are the most commonly chosen insurance add-ons for car policies in India.
- Zero Depreciation cover: Getting your car repaired without paying extra just because the parts are considered old. Standard insurance deducts depreciation, meaning you pay more out-of-pocket for older parts. This cover ensures you get the full claim amount, making repairs cheaper and stress-free.
- Useful for: Owners of new or high-value cars and city drivers who want full repair coverage.
- Engine Protector: Protects your engine from damage caused by water ingress, oil leakage, or flooding, which are usually excluded in standard policies. This add-on covers expensive engine repairs or even replacement, which can otherwise be a huge financial burden.
- Useful for: Cars driven in flood-prone areas, heavy rainfall regions, or low-lying urban zones.
- NCB Protection: Lets you retain your ‘No Claim Bonus’ even after making a claim. Without it, even a single claim can reduce your discount or reset it to zero, increasing your renewal premium.
- Useful for: Careful drivers, long-term car owners, and those aiming to maintain lower insurance costs.
- Consumables Cover: It covers the cost of small but essential items used during repairs, like engine oil, brake fluid, nuts, bolts, screws, and washers. These are usually not included in standard policies, so this add-on prevents extra out-of-pocket expenses.
- Useful for: Drivers who frequently use their cars in heavy traffic or vehicles that require regular maintenance.
- RTI Cover: Ensures that in case of total loss or theft, you receive the original invoice value of your car instead of the depreciated Insured Declared Value (IDV). This helps avoid major financial losses and protects your investment, especially in the first few years.
- Useful for: Cars up to 3 years old or owners wanting protection against major financial loss.
- Roadside Assistance Cover: Provides immediate help during breakdowns, including towing, dead battery jump-start, flat tyre repair, and fuel delivery. Some plans also offer minor on-the-spot repairs and emergency support, reducing the stress of being stranded.
- Useful for: Long-distance travellers, solo drivers, and owners of older vehicles who want immediate help on the road.
- Battery Protection Cover: It covers repair or replacement of EV batteries damaged by power surges, water ingress, or manufacturing defects. Considering the high cost of EV batteries, this add-on protects one of the most expensive components of your car.
- Useful for: Electric vehicle owners looking to safeguard a critical car component.
- Key Replacement Cover: The cost of replacing lost, stolen, or damaged keys, including electronic key fobs and smart keys. Modern keys are expensive to replace and sometimes require dealer assistance, so this add-on saves time and money.
- Useful for: Owners of modern cars, urban drivers, and those frequently using valet or public parking services.
- Tyre Protect Cover: Covers the repair or replacement of tyres damaged due to accidents, potholes, or punctures. Tyres are often excluded from standard insurance, and premium or performance tyres can be very costly. This add-on ensures you’re not burdened with sudden expenses.
- Useful for: Owners of sports or frequently used vehicles, and those driving on rough or urban roads.
What things to keep in mind when buying car insurance add-ons?
Deciding which add-ons are truly necessary and which might be superfluous requires careful consideration of several factors:
- Vehicle’s Age and Value: New cars benefit most from add-ons like zero depreciation cover and RTI cover, while older cars may only need practical covers such as engine protector or roadside assistance.
- Driving Habits: Frequent city driving or travelling in high-risk areas may require additional protection. Occasional drivers can focus on essential add-ons to avoid unnecessary premium increases.
- Clarity of Add-on: Read the policy wordings carefully. Some add-ons, like NCB protection or engine protector cover insurance, have specific eligibility or claim conditions.
- Compare Across Insurers: Premiums and coverage limits can vary significantly, so selecting the best car insurance add ons. Park+ helps you compare policies and add-ons in one place, making it easier to choose the most suitable combination based on value rather than quantity.
- Benefits on Add-on: Ensure the cost of each add-on justifies the potential claim coverage, and avoid overloading your policy with unnecessary options.
Car insurance add-ons offer flexibility and control, allowing car owners to move beyond standard coverage and focus on protection that reflects real driving conditions. Choosing the important add ons in car insurance thoughtfully can significantly improve financial preparedness and reduce unexpected expenses during claims. The car insurance premium calculator is a useful online tool that helps individuals get an idea of the payable premium. Understanding priorities, staying informed, and reviewing available options before making a decision is essential. Park+ can simplify the process by helping you explore, compare, and select suitable add-ons with ease.