Car insurance is not just about having a basic policy to meet legal requirements. While a standard comprehensive car insurance policy offers essential protection, it may not always cover every real-life situation you face on Indian roads. This is where add-on covers play an important role. Add-ons are optional benefits that you can include in your car insurance policy by paying a small extra premium to enhance your protection.

Choosing the right add-ons can significantly reduce your out-of-pocket expenses during claims and provide peace of mind in unexpected situations. However, many car owners either skip add-ons completely or choose them without understanding their real value. This guide explains the different types of add-on covers in a car insurance policy, their benefits, and who should consider them.

What Are Add-On Covers in Car Insurance?

Add-on covers are additional protection options that extend the coverage of your standard comprehensive car insurance policy. These covers address specific risks that are usually excluded or only partially covered under the basic policy.

You can select add-ons while buying a new policy or during renewal. Each add-on has its own cost and benefits, so it is important to choose only those that match your driving habits, vehicle condition, and usage.

Why Add-On Covers Are Important

In real-world scenarios, car damages often go beyond what basic insurance pays for. Add-ons help by:

· Reducing repair expenses

· Protecting expensive car parts

· Covering special situations like engine damage or roadside breakdowns

· Improving claim settlement value

Instead of paying large sums during repairs, the right add-ons can save money in the long run.

Different Types of Add-On Covers in Car Insurance

1. Zero Depreciation Cover

This is one of the most popular add-ons, especially for new cars. Normally, insurance companies deduct depreciation on car parts during claims. With zero depreciation cover, you receive the full cost of replaced parts without any depreciation deduction.

Best for:

· New cars

· Expensive vehicles

· Owners who want maximum claim value

2. Engine Protection Cover

Standard car insurance does not cover engine damage caused by waterlogging, oil leakage, or hydrostatic lock. Engine protection add-on covers repair or replacement costs of the engine and gearbox due to such issues.

Best for:

· Areas prone to floods or heavy rains

· Luxury cars with expensive engines

· Vehicles frequently driven in traffic-heavy areas

3. Roadside Assistance Cover

This add-on provides emergency help if your car breaks down on the road. Services usually include towing, battery jump-start, fuel delivery, flat tyre assistance, and minor repairs.

Best for:

· Frequent travelers

· Long-distance drivers

· People who drive alone often

4. Return to Invoice (RTI) Cover

In case of total loss or theft, this add-on ensures you receive the full invoice value of your car, including registration and road tax, instead of the depreciated IDV amount.

Best for:

· Brand-new cars

· High-value vehicles

· Owners worried about financial loss after theft or major accidents

5. Consumables Cover

During repairs, items like engine oil, nuts, bolts, coolant, and brake fluid are not covered in standard policies. Consumables add-on pays for these small but frequent expenses.

Best for:

· Cars that undergo frequent repairs

· Owners who want complete repair coverage

6. Key Replacement Cover

Modern car keys are expensive and contain electronic chips. This add-on covers the cost of replacing lost or damaged keys and even lock-set replacement if required.

Best for:

· Cars with smart key systems

· Urban drivers where key loss is common

7. NCB Protection Cover

No Claim Bonus (NCB) reduces your premium if you do not make claims. This add-on protects your NCB even if you make a claim during the policy period, subject to conditions.

Best for:

· Safe drivers with high NCB

· Those who want long-term premium savings

8. Tyre Protection Cover

This add-on covers tyre replacement costs due to cuts, bulges, or bursts, which are not included in standard insurance.

Best for:

· Cities with poor road conditions

· Cars with expensive alloy wheels and tyres

9. Passenger Assistance Cover

This add-on provides benefits such as hotel stay, alternative transport, or medical assistance for passengers in case of breakdown or accident far from home.

Best for:

· Family travelers

· Long road trips

10. Daily Allowance Cover

If your car is in the garage for repairs, this add-on offers a daily cash allowance to help cover transport expenses.

Best for:

· Office commuters

· People who depend heavily on their car

How to Choose the Right Add-Ons

Not every add-on is necessary for every driver. Smart selection depends on:

· Age and value of your car

· Driving frequency

· Road conditions in your area

· Parking safety

· Repair and maintenance costs

For example, zero depreciation and return to invoice are more useful for new cars, while roadside assistance is helpful for frequent travelers. Choosing unnecessary add-ons can increase premium without adding real value.

Common Mistakes to Avoid While Choosing Add-Ons

· Selecting too many add-ons without understanding benefits

· Ignoring engine protection in flood-prone cities

· Skipping NCB protection after building high bonus

· Not reviewing add-ons during renewal

Always reassess your needs every year instead of renewing the same add-ons automatically.

Conclusion

Add-on covers play a crucial role in making your car insurance policy truly effective. While a standard policy offers basic protection, add-ons help cover real-world risks that can otherwise result in heavy expenses. From zero depreciation and engine protection to roadside assistance and tyre cover, each add-on serves a specific purpose and can provide valuable financial support during emergencies.

Choosing the right combination of add-ons ensures better claim settlements, fewer out-of-pocket expenses, and greater peace of mind. Platforms like Square Insurance help car owners understand coverage options clearly and choose suitable add-ons based on individual needs, making the process of buying and renewing car insurance simpler and more transparent.

Also Read -

Frequently Asked Questions

1. Are add-on covers mandatory in car insurance?

No, add-on covers are optional. However, they provide additional financial protection and can be very useful depending on your driving conditions and vehicle type.

2. Can I buy add-ons with third-party car insurance?

Most add-ons are available only with comprehensive car insurance policies, not with third-party-only plans.

3. Do add-ons increase car insurance premium a lot?

Add-ons increase premium slightly, but the benefits during claims often outweigh the additional cost.

4. Can I change add-ons during renewal?

Yes, you can add or remove add-ons at the time of policy renewal based on your current needs.

5. Which add-on is best for new cars?

Zero depreciation cover and return to invoice cover are highly recommended for new vehicles.

6. Is engine protection necessary for all cars?

It is especially important in areas with waterlogging or heavy rainfall, as engine repairs can be extremely expensive.