When it comes to car insurance, most people think only about the basic coverage. But did you know that you can make your policy even better with something called add-ons? Add-ons are extra benefits that you can add to your car insurance to protect yourself in more ways.
From covering damage to your car to helping with emergencies on the road, add-ons can make a big difference. In this blog, we will explain the different types of car insurance add-on policies in simple words, so you can choose the ones that suit you best.
What Are Add-Ons Covered in Car Insurance?
Add-ons, also called riders, are extra protections you can add to your standard car insurance policy. Think of them as bonus features. While your regular insurance covers basic things like accidents and damages, add-ons give you more coverage for specific situations.
For example, a basic policy might not cover the depreciation. But with the right add-on, you can get coverage for that too. Add-ons usually come at an extra cost. But in many cases, they are worth it because they save you money and trouble in unexpected situations.
Why Should You Buy Add-Ons?
You might wonder, “Why should I spend extra on add-ons?” Here are a few reasons:
- Gives Better Protection: Add-ons cover risks that a standard policy does not.
- Offers Peace of Mind: You don’t have to worry about small problems turning into big expenses.
- Provides Customization: You can choose add-ons according to your needs and car type.
- It Saves Money in the Long Run: Paying a little extra now can save you a lot if something unexpected happens.
List of Top Car Insurance Add-On Covers
There are many types of Car Insurance add-ons available in car insurance policies. Let’s look at the most common ones:
| Add-On | What It Covers | Why It’s Useful |
| Zero Depreciation Cover (ZDP) | Pays the full cost of replaced car parts without deducting depreciation | Higher claim amount, less out-of-pocket expense |
| Engine and Gearbox Protection | Repairs or replaces engine/gearbox damage due to water, oil leaks, or accidents | Covers expensive repairs, peace of mind |
| Roadside Assistance | Help during breakdowns, towing, emergency repairs, and fuel | Immediate help avoids being stranded |
| Return to Invoice Cover | Pays the full original car price in case of theft or total loss | Buy a new car without extra cost |
| Consumables Cover | Covers repair items like nuts, bolts, oil, and grease | Makes the repair process easier, no extra cost for small items |
| NCB Protection | Protects the No Claim Bonus even after making a claim | Maintains discount, reduces renewal cost |
| Personal Accident Cover for Passengers | Covers passengers for injuries or death in an accident | Protects everyone in the car, provides financial security |
| Daily Cash Allowance | Gives a daily allowance while the car is under repair | Helps with daily expenses during repairs |
| Key Replacement Cover | Replaces lost or stolen keys, including key fob and locksmith charges | Saves money on key replacement, reduces stress |
Let’s understand each car insurance add-on in detail:
Zero Depreciation Cover (ZDP)
Normally, when your car gets damaged, your insurance company does not pay the full cost of the parts. They deduct the value of depreciation because parts get old over time.
Zero Depreciation Cover, also called Nil Depreciation Cover, solves this problem. With this add-on, the insurance company will pay the full cost of replaced parts without deducting depreciation.
Who should take it?
- People with new cars
- Cars less than 5 years old
- Owners who want maximum coverage
Why is it useful?
- You get a higher claim amount
- Less out-of-pocket expense when repairing your car
Engine and Gearbox Protection
Your car’s engine and gearbox are very important. If they get damaged, repairs can be very expensive. Standard insurance may not cover engine or gearbox damage caused by water, oil leaks, or accidents. This add-on covers the cost of repairing or replacing the engine and gearbox.
Who should take it?
- People living in flood-prone areas
- Car owners who drive long distances frequently
Why is it useful?
- Covers expensive repairs
- Gives peace of mind in case of engine trouble
Roadside Assistance
Imagine your car breaks down in the middle of the road. You might need a tow truck, fuel, or a mechanic. Roadside Assistance add-on helps you in such situations.
Who should take it?
- People who travel long distances
- Those who often drive in remote areas
Why is it useful?
- Immediate help during emergencies
- Avoids being stranded on the road
Return to Invoice Cover
When your car is stolen or completely damaged (total loss), insurance usually pays the current market value, not the original price you paid for the car. This is often less than what you spent. Return to Invoice Cover ensures you get the full original price, including taxes and registration charges.
Who should take it?
- People with new cars
- Those who want full financial protection
Why is it useful?
- You can buy a new car without extra cost
- Covers total loss completely
Consumables Cover
Car repairs often need small things like engine oil, nuts, bolts, and grease. Standard insurance does not cover these consumables. Consumables Cover pays for these items when your car is being repaired after an accident.
Who should take it?
- Car owners who want complete repair coverage
- People who want hassle-free claims
Why is it useful?
- No extra cost for small repair items
- Makes the repair process easier
No Claim Bonus (NCB) Protection
No Claim Bonus is a discount you get on your premium if you do not make a claim in a year. But if you make a claim, you lose this discount. The NCB Protection add-on protects your bonus even if you make a claim.
Who should take it?
- People who want to save money on renewal
- Those with a low claim history
Why is it useful?
- You don’t lose your NCB after a claim
- Reduces insurance costs in the long run
Personal Accident Cover for Passengers
Basic car insurance usually covers only the driver in case of an accident. Personal Accident Cover for passengers ensures that anyone traveling in your car is also protected financially if they get injured or die in an accident.
Who should take it?
- People who often travel with family or friends
- Car owners who carry passengers regularly
Why is it useful?
- Protects everyone in your car
- Provides financial security in case of accidents
Daily Cash Allowance
After an accident, your car may need repairs. The Daily Cash Allowance add-on gives you a fixed daily amount while your car is in the workshop. This helps cover transport or other expenses during the repair period.
Who should take it?
- People who rely on their car daily
- Those who want extra financial support during repairs
Why is it useful?
- Helps with daily expenses
- Reduces financial stress
Key Replacement Cover
Losing your car key can be costly. Some add-ons cover the cost of replacing lost or stolen keys, including the key fob and locksmith charges.
Who should take it?
- People with expensive cars
- Car owners are prone to losing keys
Why is it useful?
- Saves money on key replacement
- Reduces stress if keys are lost
How to Choose the Right Add-Ons?
Choosing the right add-ons depends on your car, budget, and lifestyle. Here are some tips:
- Check Your Car’s Age: New cars may need Zero Depreciation and Return to Invoice cover.
- Consider Your Location: If you live in flood-prone or high-traffic areas, Engine Protection or Roadside Assistance can be helpful.
- Think About Your Driving Habits: Long-distance drivers may benefit from Road Trip or Daily Cash add-ons.
- Budget Wisely: Only choose add-ons you really need. Paying for unnecessary coverage is not worth it.
Conclusion
Add-ons in a car insurance policy are like bonus features that make your insurance stronger and more useful. They protect you from extra risks, reduce financial stress, and give you peace of mind. From Zero Depreciation Cover to Roadside Assistance, there are many options to choose from depending on your car, location, and lifestyle.
By understanding the different types of add-ons, you can pick the ones that suit you best and make your car insurance more complete. Remember, a little extra cost today can save you a lot of money and trouble tomorrow.
So, next time you renew or buy car insurance, take a close look at add-ons. They might just be the protection you didn’t know you needed!