How Useful Are Add-On Car Insurance Covers?

Add-on car insurance covers are designed to strengthen your Comprehensive Car Insurance policy. These covers originate from the exceptions of the comprehensive policy. If you want a slightly personalised and wide insurance coverage, then going for Add-on covers in motor insurance can be extremely beneficial for you.

Do Add-ons Increase The Premium?

Yes, Add-ons will increase your car insurance premium. However, they will provide additional coverage. When it comes to making a claim, the amount received from the insurance company will help you to minimize financial losses. This wouldn’t have been possible in the first place if you didn’t have the Add-on. Therefore, paying more premium is justified when you look at the risk-reward equation associated with it.

Which Are The Popular Add-on Covers In Motor Insurance?

Most of the insurance providers offer the following popular Add-on covers. Want to know how useful are these Add-on covers? Read ahead to find out.

  • Zero Depreciation Car Insurance

Zero Depreciation Car Insurance is also known as Bumper-to-Bumper cover. The value of a car depreciates with time. Therefore, when a claim is raised, the insurance company deducts this depreciation amount from the claim amount and then settles the claim. However, if you have Zero Depreciation Car Insurance, the insurance company will not reduce the depreciation amount and settle your claim accordingly.

  • NCB Insurance

NCB Insurance or NCB Protect as it is referred to, is an Add-on that can help you fetch discounts while renewing your car insurance policy. Insurance companies provide a No Claim Bonus (NCB) if you do not raise a claim during the policy year. If you make a claim, you lose the NCB Insuranceadvantage. If you purchase the NCB Protect Add-on, your NCB will remain intact in spite of you making two claims in a year.

  • Roadside Assistance

Imagine you are going on a road trip and your car stops working midway! If you have a Roadside Assistance Add-on, all you have to do is call your insurance company and they will arrange a mechanic for you. If the car can’t be repaired on the spot, it will be towed. You do not have to face the hassle of searching for a mechanic or arranging for your vehicle to be towed to the garage.

  • Engine Protect

Expensive cars have expensive engines and if the car’s engine gets damaged in an accident or due to natural calamities, repairing it will be a costly affair. A basic comprehensive policy does not cover damages to the car’s engine. Protecting car’s engine can be ensured with the help of an Engine Protect Add-on. This Add-on is extremely useful in flood-prone areas.

  • Passenger Cover

This Add-on extends the benefits of insurance to the passengers seated in the car as well. This Add-on is suitable for those who often drive with passengers in the car. For example, four professionals pooling a car to office daily or a family that goes out in their car quite regularly.

  • Personal Belongings Cover

Nowadays, gadgets such as smartphones and laptops have become an integral part of our lives. Often, such gadgets are kept in the car while commuting. Thus, such expensive personal belongings can get damaged if the car is involved in an unfortunate event such as an accident. With a Personal Belongings Add-on cover, your belongings kept inside the car will be insured against major risks.

Research and Purchase

Above-mentioned popular Add-ons might not be suitable for everyone. Thus, it is important to research about what is covered and what is exempted by such Add-ons and then decide if they are suitable as per your needs.

Author: Eddy

Eddy is the editorial columnist in Business Fundas, and oversees partner relationships. He posts articles by others on various topics related to strategy, marketing, supply chain, technology management, social media, e-business, finance, economics and operations management. The articles posted are copyrighted under a Creative Commons unported license 4.0. To contact him, please direct your emails to