Add on insurance cover for vehicle: things to remember

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Add on insurance cover for vehicle: things to remember
Add-on cover in your automobile insurance policy is made to expand the scope of coverage in the insurance cover. However, these covers also increase your cost and so the decision to go for these extensions can only be made based on the requirement of the policy. Now-a-days. various companies are offering such covers, but it should be need based, otherwise it can work to amplify your premiums. If purchasing a car is a luxury, insuring it is a necessity in order to save from contingent risks. There are several add on covers available in the market, it is up to you to choose which cover to take. There are some decent and useful vehicle risk covers available in the market.

Insurance of CNG kit

The rise of petrol and diesel prices has resulted in many car owners switching to diesel and LPG kits in their vehicles. The risk of fire increases in such kit during the summer. These kits can be insured with the help of certain additional premium policies offered by the companies.

No claim bonus and retention

This is a bonus that you get in case you don't opt for any claim within a year or after inception of the policy. In other words, it is a reward for your actions. These claims start from 20 percent and can go up to 50 percent depending on no claim made or pending during the preceding year of insurance. Earlier, a small claim used to nullify the "No claim bonus" from a policy holder. But, this is not the case now as many insurance companies are giving the offers of protection of this bonus up to a certain limit and additional premium.

Also read when and how to claim motor insurance

Co passenger's insurance

In case of a mishap, the life of not only the driver, but other persons sitting in the vehicle is also at stake. In such cases, one can take benefits of Co passenger's insurance against death or disability due to an unfortunate accident.

Assistance on road

This is another important cover that saves you from a lot of frustration and covers your vehicle in a situation of any technical break down on the road. It is possible that your vehicle gets affected in the middle of the road or your car tyre gets punctured. Such a scenario can be dealt with by taking a road assistance cover that provides safety against odds.
About the author: Amit Sethi is an MBA (Fin) graduate and a Financial Consultant. He has spent over 10 years in Equity research, Stock broking and Financial Consultancy Sector. He can be reached at


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