When it comes to car insurance, it is better to opt for the right coverage rather than the least expensive one. A car is usually an expensive investment and it makes sense to insure it in the best possible way. So, you need to pick an insurance policy that offers the coverage your car needs as per your unique requirements.

It is easy to dismiss additional cover options as unnecessary buy. But if you choose wisely, you can opt for the right policy extras (add-on covers) for maximum insurance benefits.

The Various Aspects of Additional Car Insurance

There are plenty of add-on cover options you can avail when buying car insurance. It can be helpful for you to assess your need for each one before deciding on the coverage plan.

Here are some of the common additional cover options in car insurance.

Zero Depreciation – This is a really useful add-on cover option as it allows you to claim full coverage forthe parts you need to replace, post an accident. Without zero depreciation additional cover, you will be entitled to receive the reimbursement only for the depreciated value of that specific car part. But if you opt to buy a zero-depreciation cover, you get the benefit of your insurer not accounting for any depreciation when covering the claim amount.

If you travel frequently in high traffic prone areasor often find your car just about to bump into another on the road (or vice-versa) then this add-on cover may be just right for you. A car’s value begins to depreciate almost immediately upon its sale. When you file a claim, you will get the cover for the entire damage amount if you purchase azero-depreciation cover. It will help you reduce your out-of-pocket expenses considerably in case your car gets damaged. This type of add-on cover is also sometimes referred to as nil depreciation.

Return to Invoice –Also known as invoice protection, the insurance claim is doneon the basis of the value of the invoice and not the current value of your car after accounting for depreciation. The original value is referred to as ‘insured declared value’ or IDV.

If you live in areas prone to vehicle thefts or need to frequently drive your car over long distances thenbuying an invoice cover may be helpful for you. When you file your claim, you will be compensated as per the IDV, which will include all other costs as well,such as for the registration of the vehicle and any road taxes paid.

Such an add-on cover can come in very handy in case a vehicle gets damaged quite extensively. Return to invoice is only available for new cars up to a few years after the purchase. This period can vary for different insurers. But usually return to invoice is not available for cars that are older than three years. If you wish to protect your new car against thefts or extensive damage, you can consider buying return to invoice add-on cover.

Engine Protect – This is an add-on option where the insurance company will compensate you for the engine breakdown not related to any accident.

Engine repairs, particularly for expensive cars, can be really high. If this cost is of particular concern to you then checking out this add-on cover option can be worth your while. For example, if you live in an area prone to water-logging or flooding then there is always a risk of the engine incurring water damage. So, you can pay a little extra for an engine protection add-on cover and enjoy peace of mind when it comes to protecting the expensive engine of your car.

Under engine protection, you can also get coverage for gearbox damage or oil leakage (unrelated to accident damage) depending on the insurance company.

NCB Protect –Your Car Insurance Policy will earn NCB or ‘No Claim Bonus’ if you don’t file a claim in any given year. You can accumulate it every year and benefit from lower premium payment in the subsequent year. With your NCB protection cover, you can retain your NCB even if you need to file a claim. This type of add-on cover is useful if other people also drive your car every once in a while, or if you start feeling less confident about your driving skills.

It can be beneficial for car owners to protect their NCB as it is transferrable to a new vehicle. So, even if you buy a new car, you can continue to enjoy the NCB. But without NCB protect add-on cover, there is a risk that you might lose your discount when in any given year you file even a small claim.

Consumables Cover – You can even buy add-on covers for consumables such as screws, nuts, brake fluid etc. for your car. Usually, compensation for these parts are not covered by general polices for cars in case of an accident claim.

Roadside Assistance Cover – It can come in handy as your insurer will arrange for road side assistance for you. The help can be for arranging fuel, medical emergencies, lost key assistance, minor roadside repairs, towing etc.

In a Nutshell

The availability of additional cover options in car insurance depends on the insurance provider. It is,however,a good idea to inquireabout the add-on optionsand their costsalong with benefits,before purchasing one from your insurer. Doing so will ensure that you are able to buy optimal coverage for your car.

Jeffrey Connolly