Branded content: five essential supplements for your car insurance
Posted Nov 29, 2021 3:20:00 PM
Here are some important additions that will help improve your car insurance policy.
Always keep your driver’s license and auto insurance policy documents handy when driving a car. These documents are mandatory and not having them when requested can result in hefty fines and even jail time in some cases. Are you wondering what makes auto insurance so crucial? Well, auto insurance is insurance for financial support in the event of an accident.
While Indian laws require third party insurance that only covers third party liability, a standard auto insurance policy provides financial coverage against third party liability as well as damage to your car. However, there might be certain situations that are not covered by a comprehensive policy. In such situations, to improve coverage, you can purchase additional coverage or supplemental policies for an additional premium.
Since you have to pay extra to purchase supplemental coverages, be sure to weigh the need against the cost and choose the ones you need, as they can significantly expand the scope of the policy’s coverage. A little extra premium today can mean big savings tomorrow. To help you pre-screen, here are the top five add-ons that can dramatically improve your policy coverage.
Usually, the cost of replacing and repairing the engine is quite high. This add-on protects against damage to the engine and its parts due to non-accidental reasons such as natural disasters. Flooding can lead to lubricating oil leaks, water infiltration, damage to the gearbox, connecting rods and more. Repairing or replacing the engine is usually very expensive, especially in the case of premium or imported category cars. Hence, this add-on is very useful because damage to car engines other than due to accident is not covered by standard policies.
Roadside assistance coverage (RSA)
Does the thought of your car breaking down in a secluded place at odd hours make you tremble? Then you need to go for RSA coverage, also known as car breakdown coverage. With this coverage in your kitty, all you need to do is inform your insurance company of the incident to get prompt coverage at no additional cost. The insurer would send a mechanic on site or organize a towing service to a nearby network garage. In the garage, you can have the car repaired in cashless mode.
Personal accident cover for passengers
An accident can cause serious bodily injury and permanent disability to any passenger in the car at the time of the incident. As part of this add-on, your insurer would take care of the financial burden related to the costs of treatment or the lack of income of your co-passengers. The insurer will transfer part or all of the sum insured, depending on the terms of the policy, to cover their financial loss. In the event of death, the attorney of the deceased would receive the amount of compensation.
No Claim Bonus (PNE) protection cover
This coverage would keep the NCBs intact even if you make claims during the policy period. Without this add-on, you lose valuable BCNs that you have accumulated over the years by avoiding claims. NCB components remain active according to the terms and conditions of the additional cover. Generally, this option allows up to two claims per insurance year. This coverage will give you additional protection and you will also be able to benefit from the renewal discount regardless of the loss (or losses) during the term of the policy.
The zero amortization or zero amortization guarantee provides for the disbursement of the full amount of the sum insured without any depreciation deduction. Depreciation is the decrease in the market value or price of the car due to aging. Depreciation begins immediately after a new car leaves the showroom and increases every year due to natural wear and tear. If your car is stolen or irreparably damaged in an accident, with this add-on, no depreciation amount will be deducted for wear and tear on parts. The auto insurance provider would be required to pay the full amount. The add-on also provides 100 percent coverage for the fiber, rubber and metal parts of the car body.
Supplemental coverages are beneficial because they provide financial protection in situations where your standard auto policy may fail. Buy add-ons that enhance your policy coverage without hitting your budget.
Copyright (c) Autocar India. All rights reserved.