People generally don’t like to spend a lot of time shopping for a car insurance policy. They think that there are only two options available in the market, that is, third party civil liability, which is mandatory by the Motor Vehicle Law, and the second is comprehensive insurance. But the reality is that there are so many additional coverages that can increase your auto insurance coverage by spending a minimal amount when you buy or renew your auto policy.
In order to choose the ideal supplemental coverages to enhance the coverage of your auto insurance policy, it is very important that you understand the essential role of supplemental coverages.
Zero Depreciation – No one likes to be in a situation where they are shocked to learn that they have to lose out of pocket to fix their damaged car, even if they have an auto insurance policy. But, the fact is that no insurance policy offers comprehensive coverage for your car in the event of loss or damage in an accident. To avoid such a situation, you should opt for the No Dep or Zero Dep add-on, which gives you a full claim on the value, parts repaired or replaced after an accident. Ideally designed for new cars only, companies generally don’t offer this type of add-on for cars that are more than 5 years old.
No Claim Bonus (NCB) Retainer – Going by its NCB retainer name, this add-on works as a protective hedge for your NCB. NCB is a reward for not making any claims against the insurance policy in the previous year. Typically, people do not take advantage of any claims but renew their insurance every year. The insurance company grants a reward in the form of a discount of up to 50% on the cost of the premium that will be withdrawn by the company if the claim is taken once. So there is an NCB retention provision even if you make any claims.
Roadside Assistance: Imagine you’re driving home and your car gets stuck somewhere in the middle of the night for some reason, like lack of fuel, some technical problem or a dead battery, now what? As the name suggests, this plugin will help you get home in such an emergency and take care of your car. If you have opted for this add-on along with your standard car insurance policy, you do not need to worry about assistance while driving in a remote location or at night.
Personal Accident Coverage: With this additional coverage, the insurance company offers protection to both the owner and the paid driver if it exists. You can opt for personal accident coverage by combining it with comprehensive car insurance. This supplement provides you with a lump sum benefit in the event of permanent disability or accidental death caused in an accident.
Daily cash allowance: In case of a serious accident, the procedure to repair your car is too long and your car has to stay in the garage for days or weeks or even more than a month, depending on the condition of the car. In that situation, you have to change public transport or hire a taxi, which is an expensive option, especially if you have budget restrictions. Therefore, under this add-on, the insurance company will bear the cost of such daily switching charges.
Also, there are many other add-ons available in the market including Return to Bill, Engine Cover, Key Replacement which you can combine with your standard insurance policy. So choose wisely based on your requirements to enhance your policy coverage.