Car insurance policy – Most vehicle owners consider auto insurance to be a recurring annual expense, especially when liability insurance is required by the Auto Insurance Act. However, the benefits of motor insurance and supplementary insurance are only provided by the insured person if his vehicle is involved in an accident. In order to ensure complete peace of mind for vehicle owners, insurers now offer a variety of complementary coverages that bring multiple benefits.
In this blog, we talk about the benefits of supplemental coverage and how to leverage your auto insurance policy.
Here are 5 additional coverages to increase your auto insurance benefits:
1. Zero Depreciation Additional Coverage:
This is a very popular additional coverage offered by auto insurance companies. It ensures that policyholders fully claim the repair costs of the vehicle incurred as a result of an accident. Zero depreciation coverage is typically offered for new vehicles or until the vehicle is three years old. The premium for this additional insurance increases as the vehicle ages. This additional coverage is beneficial for policyholders as they can receive the full loss without considering the depreciation factor of parts replaced after an accident.
2. Supplementary accident insurance:
This additional insurance is also very important because it can be taken out for both the vehicle owner and the employed driver. If this additional cover is taken out for the owner-driven vehicle, the nominee is entitled to 100% compensation in the event of death. In the event of permanent loss of arms or legs, the insured person is also entitled to 100% compensation, depending on the sum insured. However, the insured person has no claim if the owner or driver of the vehicle is not in possession of a valid driving license at the time of the accident. This additional cover can only be purchased for one vehicle, even if the owner owns several vehicles. Policyholders with this additional coverage also receive coverage in the event of loss or theft of personal belongings locked in the vehicle.
3. Additional Roadside Assistance Coverage:
This is also an important additional coverage offered at a very low cost. It offers policyholders immediate help and support in the event of a car breakdown or an accident. With this add-on, the insurer simply calls the insurer’s helpline number and they will be reached for help immediately. For minor repairs, the vehicle will be repaired immediately on the road and the insurance company will have to cover the cost of replacement parts if it is changed. This additional coverage also provides coverage for a flat tire replacement, an alternate wrench, a tow vehicle, an alternate battery, alternate vehicle configurations, and emergency refueling configurations. If alternative vehicle keys are used, the insured must present identification.
4. Engine Cover:
This additional cover is ideally recommended for vehicle owners residing in areas that experience heavy rainfall. This is because a vehicle’s engine is more susceptible to damage from waterlogging during the monsoon. Hydrostatic lock damage is the leading cause of engine failures, mainly caused by repeated attempts to start a wet engine. The cost of engine repairs is not covered by regular car insurance, so vehicle owners can save a lot of money by using this coverage. However, policyholders must remember that this coverage will not apply if the vehicle has not been driven in accordance with the laws and regulations of the Motor Vehicles Act.
Policyholders are offered a variety of additional coverage options to choose from based on their needs and budget. However, policyholders need to wisely choose the right supplemental insurance policies that will prove useful and beneficial to them in times of crisis.