When buying car insurance, you should review your comprehensive policy, along with add-on covers such as zero depreciation, engine cover, vehicle replacement, roadside assistance and towing. These optional add-on covers cover these elements. Excluded from policy.
Comprehensive cover
Comprehensive car insurance covers self-life insurance and mandatory third-party insurance. Third party insurance covers only the damage that the insured’s vehicle causes to other vehicles or assets or people, and the rates are fixed by the Insurance Regulatory Development Authority (Irdai) of India. Comprehensive insurance covers vehicle damage due to accidents and accidental death or disability of the insured vehicle owner and driver. If the vehicle is stolen, the insurance company will pay the full amount of the vehicle’s declaration (IDV). Each year, the insurance company corrects the vehicle’s IDV at the time of renewal of the insurance policy based on the year of manufacture, the selling price of the brand and model, and the depreciation of the vehicle. Comprehensive car insurance covers damages from natural disasters, fires and vandalism.
Add-on cover
Individuals should opt for add-on covers along with comprehensive car insurance policies. The Zero Depreciation Cover is the most popular add-on cover for policyholders to fully claim the value of parts such as plastic products, textiles, rubber and windshields in the event of an accident. Most insurers offer additional premiums to riders with zero depreciation for the first five years.
In fact, every year, the value of cars is declining due to wear and tear. Depreciation ranges from zero to 5% for 6 months to 50% for vehicles over 10 years. Also, in the event of an accident, the insurance company will bear the cost of replacing parts after depreciation, and the policyholder will have to pay the difference between the value of the new part and the depreciation. For a zero depreciation add-on cover, the insurance company will pay the full amount of the damaged part.
The engine add-on cover protects the car’s engine in the event of a flood, as hydrostatic locks are a major cause of engine failure. This add-on cover helps policyholders to be compensated for the cost of electrical destruction of the engine due to water intrusion. Returning to the invoice add-on cover will help the insured to get the full bill for the vehicle if the vehicle is damaged (total loss) due to an accident or theft. The fault support add-on cover gives the insured access to roadside assistance and towing facilities. Add-on covers aren’t expensive, and it’s good to go for some of them to protect your expensive car.
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