Everything About Car Insurance Add-ons You Should Know Before Renewing Your Car Policy


Every car operating on Indian roads must always carry at least a valid third-party vehicle insurance by the Motor Vehicles Act of 1988. You will be penalised if you are discovered to be using a vehicle without insurance or your policy has expired.

However, you can also get comprehensive insurance that covers your own damages. Another benefit of having a comprehensive cover is that you can customise it with add-on covers per your requirements, strengthening the coverage even better.

Continue reading to learn about the best add-ons you can include in your car insurance during renewal.

Why are Add-on Covers Important?

Add-on covers in car insurance policy play a pivotal role in enhancing coverage and tailoring protection to individual needs. These supplementary policies provide safeguards beyond standard insurance, addressing specific risks like zero depreciation, engine protection, and roadside assistance. Tailoring coverage ensures comprehensive financial security, making add-ons crucial for a well-rounded policy.

Top 7 Add-on Covers to Include In Your Insurance

  • Zero Depreciation 

A car’s market value decreases with every year that goes by. When settling claims, the insurance company only considers the insured car’s depreciated (or current) value. The policyholder may have to pay a sizable sum out of pocket.

The insurer will consider the market value of your car, as determined at the time of policy acquisition if you want to include zero depreciation coverage in your plan. Additionally, it covers the total projected claim amount on your behalf. The insurer will disregard the depreciation value deduction. Vehicles under the age of five may benefit from this coverage.

The type of vehicle, age, number of used parts, and other comparable criteria affect the depreciation value.

  • Engine Protection

This add-on is most suited for people who reside in regions that frequently experience natural disasters like flash floods brought on by severe rain, road flooding, or clogged drains.

This damage to the vehicle’s engine brought on by these disasters is classified as a consequential loss. If an engine protection add-on covers your car, you may file a claim with the insurance provider to get the amount of money that results from any engine damage.

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  • Consumables

A few consumable parts are needed when fixing an automobile. These components include pipes, ball bearings, coolant, engine oil, and grease. The tiny but crucial pieces are typically not covered by insurance plans and are susceptible to repair charges.

The insurer will be responsible for covering these expenses if the consumables add-on covers your vehicle.

  • Return to Invoice

This coverage works best in situations involving theft, total car loss, or damage that cannot be repaired. You can file a claim with the insurance provider using this add-on, and you’ll get paid the insured car’s current market value. It is also referred to as insurance-paid on-road price compensation.

The ex-showroom price, registration fees, and road tax make up the on-road pricing. Only when the car’s age is less than three years old will the policyholder be qualified to receive the benefits offered by this add-on.

  • Pay As You Drive (PAYD) Cover 

This is a significant cover you should add when renewing your car insurance. Pay As You Drive Car Insurance offers a reduction on the base policy’s Damage coverage for four-wheelers. It also allows you to increase the number of kilometres the base insurance covers for an extra price.

  • Tyre Protection

Considering India’s driving conditions, choosing a tyre protection add-on makes perfect sense. One of the most critical components of an automobile is its tyres, which can be costly to fix constantly.

Suppose you have selected this add-on option when renewing your car insurance. In that case, you can confidently travel anywhere nationwide, knowing that your insurance will protect you from unforeseen circumstances.

  1. Lock and Key Protect 

The Key and Lock Protect add-on cover is helpful if you inadvertently misplace your car keys or need the lockset on your four-wheeler fixed. This is a complicated matter because hiring a locksmith will cost you extra money and require legal paperwork; however, if you have this covered by your car’s insurance, the procedure will be much easier. The insurance will cover the amount you pay to fix or replace it. 

So, these were some of the most workable add-ons. Make sure to choose the car insurance add-ons very wisely when renewing your car insurance or buying a policy.