What is Add-On Premium in Car Insurance?

Standard Car Insurance Coverage vs. Add-On Coverage

If you are not familiar with Car Insurance Add-Ons, it is likely that you are wondering, “Why should I choose Add-On coverage over standard coverage?”. Well, here’s why. Although Comprehensive Auto Insurance offers broad coverage by default, there are some coverage gaps.

 

For instance, if you make a claim for accident-related damages in Comprehensive Car Insurance, it is likely that your insurance provider will compensate you only for the depreciated cost of the replaced vehicle parts. However, if you buy a Zero Depreciation Add-On, you would be eligible for complete financial compensation of the replaced car parts.

 

In the next section, we will discuss the different types of Add-Ons and their respective benefits. That will give you a clearer picture of what you will be missing out on if you don’t opt for Add-Ons with your Comprehensive Car Insurance. Also, it will give you an idea on what Add-Ons are useful for you and need to be selected at the time of policy purchase.

 

Types of Add-On Covers in Car Insurance

The following are some of the types of Add On Car Insurance Covers generally available with Shriram General Insurance.

 

Nil Depreciation Cover

This is the cover we briefly mentioned in the previous section. Also popularly known as Zero Depreciation or Bumper-to-Bumper Insurance, this Add-On ensures that you receive full compensation while replacing damaged vehicle components with new parts. In the absence of this cover you will end up receiving financial aid only up to the depreciated value of the car parts. In such a case, it is likely that you will end up paying a part of the repair-related cost from your own pocket.

 

Engine Protection Cover

As you may be aware, the engine is the heart of your car. Thus, damage to it can have some serious repercussions. Fortunately, with an Engine Protection Cover, you can offset the expenses of replacing your car engine if it gets damaged in an accident. This Add-On will especially come in handy if you are situated in a flood-prone area. In such places, if flood water causes engine damage, you can claim monetary compensation.

 

Key Replacement Cover

Losing your car key can be a nightmare. The Key Replacement Cover is meant to alleviate such fears. It covers the expense of replacing or repairing car keys, including electronic ones. Thus saving you costs that would have otherwise gone into repairing/replacing the car key or reprogramming the key systems altogether. So, buy the Key Replacement Cover and keep your fears of losing your car key at bay.

 

Personal Belongings Cover

Did you know that the personal belongings in your car are not covered under your Car Insurance? This may come to you as a surprise, but don’t fret! We offer a Personal Belongings Cover to address just that. With this cover, you can benefit from financial protection of the valuables inside your car. So, financially safeguard your car and your valuables by buying our Personal Belongings Cover.

 

Roadside Assistance Cover

While embarking on a road trip, if your vehicle abruptly stops mid-journey, it is likely going to be difficult to find help nearby. However, if you have a Roadside Assistance Cover along with your Car Insurance, you can call us and get instant on-road support. If it is a minor repair, we will send a mechanic over to solve the issue so you can continue your trip. Alternatively, if it is a more complex repair, we will arrange for your vehicle to be towed to a nearby car service centre.

 

How Much Does an Add-On Cost?

Depending on the Add-On you choose, the cost will vary. As mentioned earlier, you can buy Add-Ons only with a Comprehensive Car Insurance. Consequently, the cost of the Add-On will be billed on top of the Comprehensive Car Insurance premium. To get an idea of the applicable cost, you can enter your details in the “Insure Now” text box on this page and get a free quote.

 

Choosing the Right Add-On Covers for You

Depending on your insurance needs, you can select the right Add-On Covers with your Comprehensive Car Insurance. For instance, if you are a frequent long-distance traveller by car, we would recommend getting a Roadside Assistance Cover. On the other hand, if you are situated in a flood-prone area, we would suggest getting a Motor Protection Add-On. Also, keep your budget in mind. The more Add-Ons you choose, the higher the premium payable. So, choose only the essential Add-Ons as per your requirements.

 

Benefits of Opting for Add-On Covers

Comprehensive Car Insurance is the ideal extent of coverage your car requires to avoid financial liabilities. That being said, to avoid more specific financial risks it is wise to choose the necessary Add-Ons. There are multiple options to choose from, each offering safety from a unique financial burden. So, depending on your insurance needs and risk appetite, select the necessary Add-On Covers and experience the benefits of Add-Ons on Car Insurance.

 

To Conclude

Add-Ons are a useful addition to your Car Insurance coverage. You can buy them along with Comprehensive Car Insurance. There are multiple Add-Ons to choose from and the price of each will vary. Thus, choose the appropriate Add-On Covers based on your budget and the financial risks your car is exposed to. Shriram General Insurance offers a host of useful Add-Ons. So, if you are looking to enhance your Car Insurance coverage, please visit our website/app and choose from our range of handy Add-Ons.

 

FAQs

1. What are Add-Ons in Car Insurance?

Add-Ons in Car Insurance are additional coverages available at an extra cost. They can be selected under Comprehensive Car Insurance or an Own Damage (OD) Cover. There are different types of Add-Ons, each providing protection against a unique financial liability.

 

2. Does it cost to select Add-Ons in Car Insurance?

Yes, it does cost to select Add-Ons under Car Insurance. Each Add-On option is priced differently based on the type and extent of coverage. To find out the price of Add-Ons, you can visit our website and generate a free Car Insurance quote.

 

3. How many Car Insurance Add-Ons can I pick at a time?

You can pick as many Add-Ons as you require based on your budget and insurance needs. Please note that the cost of your Car Policy is directly proportional to the number of Add-Ons you choose. So, the more Add-Ons you choose, the higher the premium payable.

 

4. Is it possible to get Add-Ons along with Third-Party Car Insurance?

No, it is not possible to get Add-Ons along with Third-Party Car Insurance. The option to select Add-Ons is available only with Comprehensive Car Insurance or an Own Damage (OD) Cover. Nonetheless, please note that Third-Party Car Insurance is mandatory as per Indian law.