Buying add-on car insurance? Here’s what you need to know

Car insurance add-ons cover the gaps typically seen in standard comprehensive insurance plans. To choose the right ones for your needs, get a thorough understanding of your policy terms and conditions.

Buying add-on car insurance? Here’s what you need to know

Buying a car insurance policy can save you a lot of anxious moments in case an unexpected emergency strikes while you’re on the road. Fuel hikes or long commute times due to increasing traffic are beyond the control of the layperson. Likewise, a comprehensive car insurance policy may have many conditions where coverage is not applicable.

Buying add-on car insurance covers can provide protection to your vehicle and make out-of-pocket expenses unnecessary. Think crater-sized potholes on our city roads leading to a breakdown, or a sudden cloudburst that floods the streets.

Related: Everything you need to know about car insurance 

Let’s take a look at some of the most useful motor insurance add-ons that are worth every rupee you spend on them.

1. Zero Depreciation Cover

In the event of a claim, your insurer will deduct a portion of the amount payable to you as per the standard depreciation rate applicable. Depending on the extent of the damage, the rate of depreciation can vary. Zero Depreciation Cover gives you the maximum possible benefit under your motor insurance plan.

2. Engine Cover

The engine is by far the most expensive and most critical component of any vehicle. If it suffers damage because of floodwater or oil leakage, this add-on takes care of the repair or replacement expenses.

3. Roadside Assistance

This provides for emergency repairs when your vehicle suddenly breaks down and leaves you stranded. It can be a lifesaver in situations when you have a flat tyre, require emergency towing, lose your key and want a spare, or need fuel to be delivered in an emergency.

4. Limited Liability Cover

This lets you recover the full on-road price of a lost/stolen car, including any miscellaneous costs such as registration fees, taxes, etc. It is an ideal add-on cover to have if your vehicle is less than six months old.

Related: All You Need to Know About Zero Depreciation Car Insurance 

5. Extended Medical cover

A standard comprehensive car insurance policy covers the owner-driver but excludes any accompanying passengers or third-party drivers. By opting for extended medical protection, you can ensure that medical expenses for your family members or paid drivers are covered.

Before you decide to buy add-on coverage for your vehicle, here’s what you need to consider:

Age of the vehicle: To get the most out of limited liability or zero depreciation cover, go for it only if your car is less than five years old. Remember that the premium payable can vary depending on the make and model of your vehicle.

Compulsory deductibles still apply: Expenses incurred for replacement of tyres, tubes, batteries, and standard deductibles are still considered to be the responsibility of the policyholder, even if a zero depreciation cover is in effect.

Add on specific coverage: It is well known that zero depreciation cover includes a vehicle’s engine and transmission. However, in case you opt only for engine protection cover and do not have zero depreciation cover enabled, depreciation will be deductible from the claim amount payable to you by the insurer.


Depending on the general conditions of your neighbourhood, identify the add-on coverage that you will benefit from the most before you buy one. And as always, read the fine print carefully! Read more about these 7 major car insurance riders to understand how to avail their benefits.


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