Due to sprawling urbanization of cities today, we are left with a questionable commute source and negligible public transport. In such a situation, people without a personal car find it difficult to manage their daily commute. However, owning a car is no longer a costly affair due to quick and efficient availability of finance and lucrative discounts. Moreover, the cost of car’s maintenance which comes with a lasting expense is the biggest reason to worry. If your car meets an unfortunate accident, the cost of repair could get you a wide hole in the pocket and your monthly cash flows could get disrupted severely.
According to the Motor Vehicles Act of 1988, having a Third-Party Motor Insurance is a statutory requirement for vehicle owners in India. However, under a third-party cover one gets the risk coverage for damages to third party or third party’s property only. Also, any basic car insurance pays only for the Depreciated Car value in case of total damage, loss, or theft.
Nevertheless, you never know when mother nature would decide to turn ferocious towards you and your property. Today, no city is completely safe from hail storms, potential flooding, lightening, earthquakes or any common natural disaster. Unfortunately, there’s nothing that can withstand the nature’s wrath. So, it is better for your car to be insured than to constantly worry about damages and repairs while you drive around.
By adding little extra amount to your basic car insurance premium, you can get a comprehensive auto insurance plans with some additional covers called Add-ons:
Zero/Nil Depreciation: This is the most popular add-on covers provided by all auto insurance companies. During claim settlement, insurance companies usually calculate the depreciation on certain parts of your car leading to a lesser claim amount. If you’ve added the zero-depreciation policy to your car insurance, you are eligible to receive a full claim on the value of parts without any deductions. Generally, the zero-depreciation add-on is valid for only first three years from the date of purchase pf the vehicle. The older the vehicle gets; the steeper can be the premium for this policy.
Comprehensive Insurance Plan: This plan, as the name suggests, cover for any loss or damage done to the vehicle due to natural disasters and other malicious activities: Fire, self-ignition, explosion, riots, burglary, or floods, cyclone, frost, earthquake, hailstorm, lightning, landslide and other natural calamities. Comprehensive coverage is needed to get your vehicle repaired for partial loss or to get complete compensation for a total loss. Preferably, report your loss to your insurer soon after the natural disaster is involved. This is important since your car insurer might be dealing with lots of claims during the natural calamity and a sooner withholding could speed up your claim process.
Quick Assistance of Road: In an event of an emergency while driving through a remote location, you might experience a flat tire or fuel run-out or battery related technical issues. In such cases, if you’re covered with the quick assistance of road policy, your car insurance carrier can get you a taxi for further commute, or fuel assistance and accommodation benefits. This is a very helpful add-on policy if you’re likely to be stranded in a remote destination without any assistance or service centers.
Personal Accident Cover: This is a rather important add-on cover often overlooked by vehicle owners. Your personal accident add-on policy covers both owner as well as the paid driver. In an unfortunate case of an accident, 100% claim benefit is provided over demise or irreplaceable damage to limbs. This policy doesn’t hold true if the vehicle is owned by some company or if the driver was driving without a valid state license.
Loss of Personal Belongings: Accidents and thefts don’t just affect the car, but also the stuff that’s kept inside the car. Under the loss of personal belongings add-on policy, users can report claim for their loss of laptop, smartphones, or other electronic equipment kept inside the locked vehicle. Several insurance firms offer an extensive range of claims under this policy which can go as high as Rs.50,000. However, the terms and conditions of the loss of personal belongings add-on vary from one insurer to another.
Auto insurance isn’t a fun expense, but it’s indeed a necessary one to avoid paying huge amounts of money in cases of accidents or emergencies. It’s very simple to just re-new your car policy every year. But in the long run, it can prove to be really excruciating – your situations change from year to year and you can reflect that in your auto insurance policy. We hope the above mention add-ons are favorably used for your beloved possessions!