Wednesday, June 17, 2009

CAR INSURANCE ADD ONS - COVER ENHANCERS

Generally the insurance companies pay upto 60-70% of the total repair cost of your car post an accident , under the car insurance cover. This is because the insurance companies pay based on the depreciated value of the car, do not pay for rubber,glass ,plastic ,fibre items etc. This results in significant monetary burden on the owner during car repair inspite of him having insurance cover. However, there are various add ons which are available in the market which will ensure that your cover on the car goes up and you are saved from the stress of paying for your repairs post any eventuality. Following are few of the options that one can look at

1. On Road Protector - Under this option, the insurance company pays for the assistance you might need in case of your vehicle getting immobilised post an accident. This will cost less than Rs 1000 per year.

2. Return to invoice - Biggest issue with vehicle insurance is that they tend to pay you the depreciated cost of the vehicle. So in case, you loose your vehicle to theft, you get depreciated value of the car while you may need to buy a new car. The insurance claim wont suffice then and you would have to cough up extra money to replace the car. However, under this cover, you will get the replacement cost of your vehicle as your claim amount.

3. Depreciation Reimbursement - This offers the full value of the parts which are replaced ,without any deduction.

4. Daily Allowance - Daily Allowance cover intends to meet the daily expenses of hiring another car till your vehicle is under repair in a garage. The rent for the vehicle is paid by the insurer.

5. Key Replacement - Covers the cost of replacing lost or stolen vehicle's or residence's keys or locks . This really comes handy when your residence keys gets stolen along with the car.

6. Loss of Personal Belongings - Offers to pay for the loss or damage to personal belongings that were in the vehicle at the time of loss or damage to the vehicle .

7. Repair of glass,fibre,rubber items as well - Under this add on, the insurer will pay for the repair/replacement of glass,fibre,rubber items in your car/vehicle as well, which is generally not paid for in a plain vanilla vehicle insurance.

8. Emergency Transport and Accommodation expenses - Covers the cost of overnight stay and taxi charges for returning to the place of residence, or the nearest city, if the insured vehicle has met with an accident and cannot be driven .


So, next time you are renewing your car insurance, think about getting some of these add ons to make your car insurance cover more extensive and meaningful.

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