In general, people do not like to spend a lot of time shopping for an auto insurance policy. They think that there are only two options available on the market, that is, third party civil liability, which is required by the Motor Vehicle Law, and the second is fully comprehensive insurance. But the reality is that there are so many additional coverages that can increase your auto insurance coverage for a small amount of money when you buy or renew your auto policy.
In order to choose the ideal supplemental coverages to enhance your auto insurance policy coverage, it is very important that you understand the essential role of supplemental coverages.
Zero Depreciation – No one likes to be in a situation where they are surprised to learn that they have to lose out of pocket to fix their damaged car, even if they have an auto insurance policy. But, the fact is that no insurance policy offers complete coverage for your car in the event of loss or damage in an accident. To avoid such a situation, you should opt for No Dep. or Zero Dep. Extra, which gives you a full claim on the value of parts repaired or replaced after an accident. Ideally designed for new cars only, companies generally do not offer this type of add-on for cars that are more than 5 years old.
No Claim Bonus (NCB) Withholding – Going by its name NCB Withholding, this add-on works as a protection hedge for your NCB. NCB is a reward for not making any claims against the insurance policy in the previous year. Normally, people do not take advantage of any claims but renew their insurance every year. The insurance company grants a reward in the form of a discount of up to 50% on the cost of the premium that will be withdrawn by the company if the claim is taken once. So there is a NCB hold provision even if you make any claim.
Roadside Assistance – Imagine that you are driving back home and your car gets stuck somewhere in the middle of the night for some reason like out of fuel, some technical problem or dead battery, now what? As the name suggests, this plugin will help you get home in such an emergency and take care of your car. If you have opted for this supplement along with the standard car insurance policy, you do not have to worry about assistance while driving in a remote location or at night.
Personal Accident Coverage: With this additional coverage, the insurance company offers protection to both the owner and the paid driver in case it exists. You can opt for personal accident coverage by combining it with fully comprehensive car insurance. This supplement gives you a lump sum benefit in the event of permanent disability or accidental death caused by an accident.
Daily Cash Allowance: In the event of a serious accident, the procedure to repair your car is too long and your car has to stay in the garage for days or weeks or even more than a month depending on the condition of the car. In that situation, you have to change public transportation or hire a taxi, which is an expensive option, especially if you have budget constraints. Therefore, under this add-on, the insurance company will bear the cost of such daily commuting expenses.
In addition, there are many other add-ons available on the market including Return to Bill, Motor Coverage, Key Replacement that you can combine with your standard insurance policy. So, choose wisely according to your requirements to enhance your policy coverage.
