Types of add ons in car insurance

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In this blog, We are going to discuss about the add on part of a motor policy.
These are the most common add ons;

Depreciation reimbursement ; This add on is also called as zero depreciation, bumper to bumber, nil depreciation. To understand this add on in simple words let's take an example;

Suppose you bought a product at 100$ two years ago. As you know that every asset has a value and it decreases day by day. So as the product is 2 years old its value is decreased by 30$ and the current value is 70$. Now you have to get claim on your product so you go to the insurance company. So, the insurance company will give you 70$ which is the current value of the product. But if you have opted Zero depreciation add on the company will give you 100$ because you have paid the premium of depreciation (30$) in advance. So,basically it is the premium which you pay to the insurer to cover the normal wear and tear.

2. Key protection ; This add on secures vehicle keys as well as the risk of damage of keylock. We know that changing the whole keylock charges too much. If you have opted this cover you can get claim when vehicle's key lost or damaged.

3. Engine secure ; Whole the vehicle is covered in zero depreciation including engine but only in the case of accident. Suppose some liquid gets into the engine and engine get seized then it won't be cover in zero depreciation. It will be cover in engine secure. If you have not opted this addon you won't get any claim in the seizing situation.

4. Return to invoice ; As the name is defining the addon, If you have opted this add on then you will get the purchase invoice amount of the product doesn't matter what is the insured declare value of product. Suppose the insuredndeclare value of vehicle is 4 lakhs but you have purchased the vehiclenin 6 lakhs. If you have not opted the return to invoice cover you will the insured declare value which is 4 lakhs. But if you have opted this cover then you will get 6 lakhs. And this add on is only triggers in the case of theft or constructive total loss means the product left unrepairable.

5. Tyre secure ; Tyre is also cover in zero dep but in the case of accident only. If the tyre got damaged or burst and whole the vehicle is undamaged then it won't be cover in zero depreciation. It will be covered in tyre secure but again if you haven't opted this addon you won't get any claim in that particular situation.

6. Consumable cover ; There are some parts which is not covered in zero depreciation. These are consumables which is nuts, bolts, screws, AC gas filters, distilled water. In simple words those parts which can be used only once cannot be repaired are consumables. If you have not opted this add on have to pay for consumables at the time of claim.

Note ; We will discuss about Roadside assistance in another blog.