Add-on covers are known as additional covers. These covers are available in exchange of an extra premium. These add-on covers are purchased for extended protection. There is plethora of add-on covers to choose from. These covers serve very special purpose of protecting the vehicle against any unforeseen damage to your car.
Here are 4 effective add-on covers for your car that you should consider including with your vehicle insurance policy.
Engine Cover: Your basic car insurance plan won’t cover any damage to the engine if it is particularly damaged due to flooding. This can be a costly affair to repair the engine. Therefore, engine cover add-on is a ‘must-have’.
Roadside Assistance: Various insurance companies are gradually aiming to provide road-side assistance benefits to their customers. With an additional premium, customers are offered the benefits under this add-on cover. However, some insurers offer these benefits with their basic car insurance cover as value added services.
Zero Depreciation Cover: Zero depreciation, also known as Nil Depreciation or Bumper-to-Bumper Cover is an additional cover for your car. When it comes to the claim settlement by a vehicle insurance company, they will calculate depreciation on specific parts of your vehicle. This method of claim settlement basically results in availing less claim amount. You can however avoid the same, if you consider buying Zero Depreciation add-on cover with your auto insurance policy. You will be offered the full claim amount.
NCB Retention: NCB or No Claim Bonus is basically a reward offered by the insurers in case where no claim has been filed in a certain policy period. This bonus is applicable to the renewal premium upto a certain percentage which can go as high as 50%. You can accumulate this bonus over years. But, if you file a claim during a policy term, you will lose this NCB. However, if you buy this NCB Retention cover, your accumulated NCB will be intact even if you file a claim.
Although add-ons covers are good to have, a word of caution is required here. Too many add-ons can enhance your premium considerably. It doesn’t mean that you should not add more than one add-on cover to your car insurance. You just need to be careful that the add-on covers that you are paying for are helpful in terms of providing coverage.
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