With changing weather patterns, frequent natural calamities, increasingly unpredictable driving conditions, and vehicles becoming more and more technologically advanced, motor insurance add-on covers are no longer viewed as optional luxuries, but as essential components of a well-rounded motor insurance plan.
We talked to Paras Pasricha, business head of Motor Insurance at Policybazaar.com, who said that customers are becoming more proactive about risk protection, and there is a clear shift in how policyholders are approaching motor insurance. “Add-ons are no longer seen as optional, they are becoming essential to a comprehensive motor insurance plan,” he said. “This shift isn’t limited to new vehicles, and even owners of older cars are opting for add-ons to boost coverage.”
Here are a few add-ons you possibly didn’t know you needed:
Clutch protector: This add-on cover provides financial protection for damage or wear-and-tear of the clutch assembly – a part typically excluded under standard motor insurance policies. It covers the repair or replacement costs of the clutch plate, pressure plate, and related components even due to non-accidental damage.
Legal protect: It’s an optional add-on that covers legal costs and expenses arising from disputes or legal proceedings following an accident. Pasricha said it covers defence costs in case of criminal charges related to the accident, and also the cost of hiring a lawyer or legal representative in case of a third-party conflict.
Daily allowance cover: It provides a fixed daily payout to the policyholder when her insured vehicle is undergoing repairs at a garage after an accident or damage covered under the policy, and Rs 500-1,500 is paid to the owner for each day the vehicle is in the garage. “It sounds too good to be true, but if your car is being repaired after an accident and you’re unable to use it for seven days, and your policy includes a daily allowance of Rs 1,000, you would receive Rs 7,000 as compensation,” Pasricha said.
Loss of personal belongings cover: Although a comprehensive car insurance covers a stolen car, it won’t cover the belongings left in there. This add-on provides compensation if the vehicle owner’s personal items are stolen, damaged, or lost from an insured vehicle due to an accident or a break-in.
Battery protection cover: In an EV, the battery repair/replacement can cost from Rs 50,000 to lakhs of rupees. Standard policies don’t cover battery wear and tear, age-related failure, or manufacturing defect, but a battery protection cover can ensure coverage for electrical/mechanical failure like water ingestion or short circuit and even damage from an accident. “Some insurers also offer battery diagnostics and jump-start assistance under this add-on,” Pasricha said.
Hotel & travel expenses: It pays for cab and hotel expenses in case an accident happens far from home.
Key replacement cover: All high-end cars use computer-coded, encrypted keys, which local dealers may not be able to duplicate. To avoid expenses related to lost car keys, insurers have started offering key replacement cover, and the insurance company will compensate for the cost of the replaced key.
Tyre protector cover: Pasricha said that considering Indian road conditions, it’s important to take this cover, which can protect tyres even if the car isn’t involved in an accident. Some insurers will also cover labour cost.
