HomeCar Insurancecar insurance add on: These car insurance add-ons worth Rs 6,500 can...

car insurance add on: These car insurance add-ons worth Rs 6,500 can save you from paying Rs 3.5 lakh for rain damages


If your car gets stuck in the middle of waterlogged roads and the engine is choked, your comprehensive car insurance policy will not be adequate to protect against those damages. Damage to your car engine can cost you several lakhs if you are not prepared. Heavy rainfall, waterlogged roads, duststorms, or thunderstorms pose added risks to your vehicle. A couple of add-on covers can come in handy for the holistic protection of your dream car.

A comprehensive insurance policy does not cover damage to the engine or gearbox or tyre or upholstery. “While comprehensive insurance covers damages due to natural disasters, theft, accidents, and third-party liabilities, certain aspects specific to monsoon-related risks may not be adequately covered. A few add-ons can help address these gaps,” said Amit Goel, Director & Principal Officer at Raghnall Insurance Broking & Risk Management.

Which add-on covers should you buy to protect your car during monsoon season?
Some of the must-have add-on covers during monsoon season are — engine protection cover, zero depreciation cover, 24×7 roadside assistance, return to invoice and consumable covers.

Before you buy add-on covers, you must take a look at how much they cost and how much you will save. Read on.

Engine protection cover: The engine protection add-on will cover the cost of repairing your engine if it gets damaged due to the ingress of water. Keep in mind not to forcefully start your car if it is stalled. If you do so and water enters the engine, it will be considered negligence. You can’t claim for damages due to regular wear and tear and negligence on your part. It could be useful for those living in areas where frequent waterlogging during the monsoon increases the chances of damage to the engine.

“A zero-depreciation add-on protects all the vehicle components completely, while there is 50 per cent coverage for tyres, tubes, and batteries,” said Nitin Kumar, Head – Motor Insurance, Policybazaar.com.

Damage to the engine bears a heavy cost, which can run into lakhs because the engine is a critical and most expensive part of your car. “For a vehicle that costs Rs 5 lakh, an engine overhaul can cost anywhere between Rs 50,000 to Rs 2 lakh,” Kumar added.

“The cost of engine protection cover will cost approximately Rs 1,500 to Rs 3,000 per year. It usually adds an extra 5 per cent to 10 per cent to the premium of the Own Damage (OD) insurance,” said Goel.

Flood damage can cause extensive harm to the engine, electrical systems, and interiors of the car, making the Engine Protection Cover essential, he added.

Zero depreciation cover
: Usually in the case of a motor insurance claim, the insurer pays for replacement for the part after deducting depreciation, which you will have to pay from your own pocket despite having insurance. However, if your car parts get damaged in accidents or submerged in water, you can claim the full cost of replacing the car parts. You don’t have to pay a penny if you have this add-on. As per standard motor insurance policies, only the depreciated value of car parts is reimbursable.

“A car is a depreciating asset, which means the policyholder has to pay for the difference between the depreciated parts and the replacement of new spare parts. One can save on this out-of-pocket expense (depreciation charges) by taking a nil or zero depreciation add-on which will cover repair and full replacement costs of rubber, plastic, and fiber components of the vehicle,” said Kunal Jha, Head – Motor Product and Actuarial, Go Digit General Insurance.

“It typically costs around 10 per cent to 20 per cent of the Own Damage premium. For a mid-range car with an OD premium of Rs 20,000, the zero-depreciation cover may cost around Rs 2,000 to Rs 4,000,” said Goel.

24×7 roadside assistance: Vehicle breakdowns are most common, especially during the monsoon season. You may get stuck during incessant rains with the vehicle not starting or your tyre bursting while you are on the road. To get assistance in such situations, you can take this 24×7 roadside assistance add-on. You can get assistance in getting your wheels fixed or towing your car, among others. Opting for a 24X7 roadside assistance add-on cover can prevent the vehicle owner from being stranded without any help for several hours.

“These packages typically include towing, battery jump-start, fixing flat tires, providing rental vehicles, and relaying messages to relatives. This coverage is particularly useful for individuals who frequently travel long distances by road, as it assists in mechanical breakdowns, tire punctures, or other emergencies. In extreme cases where the vehicle cannot be repaired immediately, the package may also cover towing to the nearest garage and arrangements for alternate transportation or accommodation,” said Aftab Chaz, Associate Director and Business Head at Elephant.in (Alliance Insurance Brokers)

This add-on can save the vehicle owner from the inconvenience of finding a repair garage, and saves the cost of services like a jumpstart, towing, on-site repairs, flat tyre assistance and emergency fuel delivery which can be anywhere from Rs 500 to Rs 2,000 (depending on how far the workshop is), Kumar added.

Those who drive long distances to work every day can purchase this cover. In addition, those who frequently plan long-distance getaways, vacations, etc. must consider buying this add-on.

Consumables cover: This is another cover that one can take to reduce their out-of-pocket expenses. “The Own Damage policy does not typically cover costs of consumables like oil, nuts, bolts, AC refrigerant, radiator coolant, etc. Any car repair due to damage would typically involve such costs. Taking this add-on can help you save on such expenses,” said Jha.

Depending on the model and variant of a new car, the consumables cover will cost around Rs 250 to Rs 350 for a Rs 5 lakh car and Rs 500 to Rs 700 for a Rs 10 lakh car insurance. The rate depends on the average cost of consumables which varies by make, model, variant, etc., and is usually charged as a rate per insured value of the vehicle, said Akanksha Jain, VP – Motor Product, Digit Insurance.

Return to invoice: In case of comprehensive insurance, the maximum amount that the insurer pays is limited to IDV of the car for which insurance was taken. IDV usually gets depreciated every year and when the car gets older it is insured for much lower value than the original price. The return to invoice add-on cover is an optional coverage that compensates the vehicle’s actual value at the time of purchase in the event of a total loss or irreparable damage. Suppose the insurance company determines the vehicle is beyond repair or a total loss. In that case, this cover ensures that the policyholder receives the original invoice value of the vehicle rather than its depreciated value. It helps the insured recover the total amount they paid for the vehicle, minimising financial loss.

If you live in an area that is prone to flooding, where roads get waterlogged easily, or where the water levels rise significantly during the monsoon season, these add-ons can provide valuable protection, said experts.

While there are other add-on covers, the ones mentioned above are the most used by consumers due to their relevance and significance during monsoons.

How much will you save in the monsoon if you buy car insurance add-ons?
These cost estimates are approximate and can vary depending on the insurance provider, specific car model, and coverage options.

For a car costing Rs 5 lakh, add-on covers can range from Rs 2,500 to Rs 3,000. For normal damage to the car, one can save close to Rs 10,000 by taking such add-ons. Monsoon-related damages can be severe and can help save up to Rs 1 lakh to Rs 1.5 lakh in cost, said Jain.

For a car costs Rs 5 lakh
Add-on Cost Savings
Zero-depriciation Rs 3,000 to 5,000 In a repair claim of Rs 50,000, customers save Rs 25,000. Without zero depreciation add-on, they would spend Rs 25,000 from their pockets
Engine protector Rs 500 to Rs 3,000 You will savings Rs 1.5 lakh if engine parts are replaced. You could save up to Rs 2.5 lakh for full engine replacement
24×7 Roadside Assistance Rs 200 to Rs 500 Savings would be Rs 1,000 to Rs 2,000 (but saving on time and convenience would be an additional benefit)
Daily Rs 500 to Rs 1,500 Savings would be Rs 1,500 per day till car is repaired and given back to you.

Source: Policybazaar

For a car costs Rs 10 lakh
Add-on Cost Savings
Zero Depreciation Rs 7,000 to Rs 12,000 In a repair claim of Rs 80,000, customers would save Rs 40,000. Without zero depreciation add-on, they would spend Rs 40,000 from their pockets
Engine protector Rs 1,000 to Rs 4,000 Value can be Rs 2 lakh (engine parts replaced) to Rs 4 lakh (full engine replaced)
24×7 Roadside assistance Rs 200 to Rs 5,00 Savings would be Rs 1,000 to Rs 2,000 (but saving on time and convenience would be an additional benefit)
Daily Allowance Rs 500 to Rs 1,500 Savings would be Rs 1,500 per day till car is repaired and given back to you

Source: Policybazaar

Similarly, for cars costing Rs 10 lakh, add-on covers can range from Rs 4,500-6,500. For normal damage to the car, one can save close to Rs 15,000 and up to Rs 1.5 lakh for monsoon-related damages by taking these add-ons. However, the price and claim cost differs based on the make and model of the car. For a few makes, the savings could be higher going up to Rs 3.5 lakh for monsoon-related damages, said Jain.

In a country like India where we are currently witnessing extreme weather conditions and constantly changing climate, every vehicle owner should ideally buy the add-ons to protect against natural calamities, said Jagjeet Singh, Chief Distribution Officer, Kotak General Insurance.



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