Car insurance: additional cover helps protect your car better


When buying a car insurance policy, consider a comprehensive policy plus additional coverages such as zero depreciation, engine coverage, vehicle replacement, roadside assistance and towing, etc These optional additional coverages will cover items that are excluded from the policy.

Full coverage

Comprehensive car insurance will cover personal damage as well as mandatory third party liability insurance. Liability insurance only covers damage caused by his insured vehicle to other vehicles or property and persons and rates are set by the Insurance Regulatory and Development Authority of India (Irdai). Comprehensive insurance coverage will cover damage to the car due to an accident and the accidental death or disability of the owner-driver of the insured vehicle. If the vehicle is stolen, the insurer will pay the full insured declared value (IDV) of the vehicle. Insurers set the vehicle’s IDV each year at policy renewal based on the year of manufacture, make and model selling price, and vehicle depreciation. Comprehensive car insurance will cover damage from natural disasters, fires and acts of vandalism.

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Additional blankets

An individual should opt for additional coverages with the comprehensive auto insurance policy. Zero Depreciation coverage is the most popular add-on coverage in which the policyholder gets the full claim on the value of parts such as plastic items, fiber, rubber, windshield, etc. due to an accident. Most insurers offer zero amortization endorsements for the first five years with an additional premium.

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In fact, every year the value of the car depreciates due to wear and tear. Depreciation varies from 5% in the period from zero to six months to 50% for vehicles over 10 years old. In addition, in the event of an accident, the insurers pay for the replacement of the parts after deducting the depreciation and the insured must pay the difference between the value of the new parts and the depreciated value. In the case of a complementary zero amortization guarantee, the insurer will cover the full amount of the damaged parts.
An additional engine cover will protect the car’s engine in the event of flooding, since hydrostatic locking is a major cause of engine failure. This additional cover will allow the insured to be compensated for the costs of electrical breakdown of the motor following water infiltration. Invoice return top-up coverage will help the insured get the full invoice price of your vehicle if your vehicle is damaged (total loss) as a result of an accident or theft. Under the additional assistance cover in the event of a breakdown, the insured will benefit from roadside assistance and towing equipment. Additional coverages are not expensive and it is good to choose some to protect your expensive vehicle.

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