It is quite common to see people buying car insurance Policy
in a rush without even bothering to know if the policy adequately covers all the potential risks or not. With Inflation
hovering around high single digit to low double digit, people’s ability to save from their income is heavily compromised. In such a scenario, if you have to spend a big sum on your car because of a loss or a damage which your current insurance policy does not cover, your financial planning can go for a toss.
In order to avoid such a situation, individuals should opt for a policy that provides them with add-on covers apart from the basic motor insurance cover.
Some important add on cover that you should look to get included in your motor car policy have been discussed below.1) Zero Depreciation -
People are usually shocked to learn that their car insurance provider will not entirely reimburse the cost of repair for the car damage for which they have sought a claim. This is due to the fact that insurance companies pay for a part after deducting the cost of depreciation on the part. However, if you have policy that offers zero depreciation benefit, you could get 100% of the cost spent on replacement of parts reimbursed. This benefit is usually restricted to vehicles which are not older than 5 years.2) NCB Retention -
In a basic car insurance cover, No Claim Bonus
is provided to those who do not file for a single claim during the year. The No claim bonus
can be accumulated over years to get a 50% discount on the Premium
amount. The Risk
with a No Claim Bonus benefit is that even if you file for a single claim you receive no bonus at all. To avoid such a situation, you can opt for NCB retention, under which if the claim filed is below a certain amount, you will still be allowed to retain a given percentage of the NCB.3) Medical Expenses Cover -
If your car meets with an accident, the risk is not just limited to the car, but extends to the passenger in the car. Hence, insurance policies offer medical expenses cover, which reimburse medical expense on the treatment of passengers. The Reimbursement
is subject to a limit.4) Personal Accident Cover -
Your normal life insurance Term
plan will not cover you for an accidental death or permanent disability. With car insurance, you can opt to buy a personal accident cover which would provide a lump sum benefit in the event of permanent disability or partial permanent disability or accidental death. 5) Daily Cash Allowance:
Those living on a tight budget, would find this add on particularly important. It provides the Insured
an allowance to cover the transportation costs, in case the car has to stay in the garage for a couple of days for repair.Compare Car Insurance Online
These days, it is possible to do an online car insurance
comparison. So, take time to understand the features of different policies and their costs and then make a decision on which of these add on covers would particularly make sense for you.