The increasing cases of road accidents, thefts, normal wear and tear, have pushed people to invest in motor insurance covers to safeguard their vehicles. A motor insurance policy provides protection against any loss or damage caused to the vehicle and its insured accessories as a result of natural or man-made calamities. In India, the Motor Vehicles Act of 1988 makes it mandatory to have a motor cover.
Nonetheless, there are certain damage expenses that your regular motor insurance might not cover. For instance, suppose a specific part of your car needs to be changed, the final bill includes not only the cost of the spare part but also the additional labour charges for installing the item. Considering such situations, insurance companies came with a range of add-ons to give enhanced coverage for your vehicle, in addition to your base motor policy. While popular add-ons such as engine protection cover, zero depreciation, return to invoice are quite known to the people, there are other lesser-known add-ons that are just as significant and valuable. The following are some of these add-on covers that should become a need over time.
Daily allowance cover
When you reside in an area where taking public transportation is difficult and on top of that your car is being repaired, it puts you in a troublesome situation. Traveling in cabs or public transport till your vehicle gets repaired isn’t easy – it will cost you both time and money. In such scenarios, the daily allowance add-on cover will get you an allowance up to Rs 500. This is generally provided for a period of two weeks so that you don’t have to bear these daily transport expenses from your own pocket. However, the amount and the number of days vary from insurer to insurer. This cover is highly recommended for people who are dependent on one vehicle.
Loss of personal belongings cover
One of your worst nightmares is your car being stolen and with a lot of your belongings taken along with your car. Although your comprehensive car insurance will cover you for the stolen car, it won’t cover you for the belongings you had left in there. In such scenarios, a loss of personal belongings cover will come to your rescue. This add-on provides compensation to the vehicle owner in the event of baggage/belongings loss or damage. It's crucial to note that coverage is limited to electronic devices such as mobile phones and laptop computers. The most significant benefit of purchasing this add-on is that it will not reduce your No-Claim Bonus (NCB). Further, this add-on allows you to claim a maximum of Rs 25,000 for a mobile phone and Rs 50,000 for a laptop.
Key replacement cover
Losing your car keys is quite stressful, especially when you are in a hurry. Additionally, it can also prove to be quite expensive, considering that all mid-to-high-end cars now use computer-coded, encrypted car keys, which local dealers usually fail to duplicate. In this case, one has to go to the car manufacturer's authorized service centre, which may charge you in thousands for a duplicate car key. To avoid such expenses, insurers offer an add-on called the “key replacement cover”. Under this, the insurance company will compensate for the cost of the replaced key. Most insurance companies will additionally pay for the installation of the new lock. However, the number of times you can use this add-on cover within a policy period varies depending on the insurer.
Tyre protector motor cover
Tires are the most important part of a car. However, they suffer the most wear and tear, especially given the road conditions in India. Also, considering that your comprehensive insurance won’t cover you for routine wear and tear, one can invest in a Tyre Protector add-on to protect his/her car tyres along with your standalone car insurance plan. This add-on will cover you for scenarios such as car Tyre(s)/Tube(s) bursts without being involved in an accident. Additionally, this will also cover labour cost, which includes, shifting, moving and fitting the tyre.