5 Motor Insurance Policy Add-ons You Should Know About
It is no less than a dream come true, when you buy a car of your choice. As it arrives in your garage, you can see your adventurous ideas taking shape. You have no worries of damage or theft cover, since you’ve already bought a motor insurance. But, what if you were informed by your insurer that there are certain add-ons, along with yourinsurance that will offer more protection to your new car? It’s an offer no owner could possibly deny. As much as insurersbenefit out of add-ons, it’s the owners that take the larger piece of cake home.
So before you buy a motor insuranceonline, below mentioned are five add-ons that you should know about:
- Non claim bonus (NCB) Protection: It is an amountrightly claimed by the owner as a reward for not filing a single motor insurance claim throughout the year. In simpler words, it is a premium discount (up to 50%) that the insured receives. Even a small claim can lead to the cancellation of your NCB. A NCB protection, allows you to claim your insurance once in a year, while you retain your bonus. This helps you to get a discount in the substantial year’s premium. However, this cover is not available for vehicles older than three years.
- Zero depreciation cover: Being the most recommended add-on, it helps you to get a full cover of the damaged parts of your car, without any deductions of depreciation. According to a standard motor insurance policy, only the depreciated value of car parts are covered, and the amount received is lesser than the actual value. Hence, by using this add on you can replace the damaged parts without spending a penny from your pocket. The cover is however available only for cars that are less than 5 years old.
- Consumable expense: Although an add-on that is been offered by insurers only recently, it has gained popularity rather quickly. Consumables are basically substances that have very specific use and when used extensively, over a period of time, they are consumed completely. In most cases, these consumables degrade and cannot be used further. For example, AC gas oil, brake oil, AC refrigerant, etc. A consumable add-on cover helps you buy new ones under your insurance policy.
- Personal baggage: As the name suggests, this add-on will help you to file a claim for any loss of personal baggage placed inside your car. The luggage could be damaged during an accident or lost during a theft. This add-on covers any loss that took place anywhere in India. However, if the baggage includes consumables or money, then it is not insured. The cover is valid only for new vehicles up to 3 years old.
- Accident shield: A car accident can sometimes lead to unfortunate death of the passengers. This add-on helps the insured when the car meets with an accident and a death or permanent disability is caused. A lump sum amount is provided by the insurers. In case you have a personal driver, then while taking this add-on, his name has to be mentioned in the policy.
Although the insurance companies have started offering a list of unique add-ons, the above mentioned are the most important add-ons one must consider buying. An online motor insurance calculator will help car owners get a fare estimate of the premium amount they’d have to pay when they sign up for different add-ons. You can compare different policies offered by insurers and select the most suitable one.