The primary concept of any insurance product is to offer financial protection against an unforeseen disaster in the future. While insurers try to create comprehensive policies, it is impossible to take a one-size-fits-all approach, especially in car insurance. There is a long list of external and unpredictable factors like weather, quality of roads, usage of the vehicle, etc., that can expose the car owner to unique risks. Hence, most insurers provide riders or add-ons that you can include in your policy for a nominal cost to avail of 360-degree protection. Today, we are going to talk about ten such rider options that you might want to consider before you buy or renew your car insurance the next time.
Riders are necessary, especially in today’s times with fast-paced lives, increasing cars on the roads, and minds diverted by smartphones. Here are ten rider options for enhancing your car insurance:
- Return to Invoice
The Return to Invoice rider helps you claim the full invoice value or the current market price of the car, whichever is lower. This is available in case of theft of your car or total/constructive loss due to an accident. If you buy this rider, the insurer will reimburse the difference between the price at which you bought the car and the insured declared value of the vehicle.
- Depreciation reimbursement
If your car is damaged and you replace some parts at a garage or workshop authorized by the insurer, then this rider allows you to receive reimbursement of the deducted depreciation amount under own-damage claim.
- Engine Secure
Under this rider, the insurer usually reimburses the expenses incurred due to repair or replacement of engine parts, gearbox, transmission, differential assembly, etc. Some insurers also pay for the lubricating oil. You need to understand the options provided by the insurer before buying this add-on since it can vary with each insurance company.
- Tyre Secure
If you accidentally damage your tyres or tubes, this rider ensures that the insurer covers the expenses of repair or replacement of tyres. However, if you decide to get a tyre of superior quality than the one you had before, then you need to bear the differential cost.
- Road-Side Assistance
This is one of the essential riders if you drive your car regularly. In the event of your car breaking down in the middle of the road, the road-side assistance rider ensures that you can avail of services like towing, flat tyre assistance, fuel delivery, battery jumpstart, spare key retrieval, etc.
- Consumable expenses
In case of an accident, this rider helps cover the expenses arising out of the replacement of parts like the nuts and bolts, washers, clips, etc. or replenishment of consumables like lubricant, gearbox oil, engine oil, air conditioner gas, etc.
- Key Replacement
As the name suggests, this rider provides cover against expenses incurred due to the replacement of the car keys if they are lost or stolen. It also covers the labour cost of the lock replacement.
- Emergency Transport and Hotel Expenses
If you are driving across cities and your car has an unexpected breakdown or damage, then this rider will pay for the taxi cost and overnight stay until you return to your city of residence. This is particularly useful for people who frequently drive their cars across cities.
- Courtesy Car
Under the courtesy car rider, in case of theft or total loss claim, the insurer pays for the courtesy or hire car for 15 days. This is made available within 24 hours of the time of intimation of the claim. If the car is under repair, then the insurer pays for a maximum period of 10 days, starting within 24 hours from the time the car reaches the garage. Usually, the insurer provides the courtesy car for 80km/8 hours (the lower of the two).
- Loss of Personal Belongings
Every insurer offering this rider has a detailed list of personal belongings that are covered under the policy. Usually, it includes items like clothes, CDs, etc. and excludes cash, jewellery, debit/credit cards, etc.
The best insurance policy is one that is tailored to suit the requirement of the individual. While car insurance companies can’t design policies for every client, they create a range of riders that you can choose from and create a combination that is in sync with your lifestyle.
While riders or add-ons can increase the premium amount, the benefits that they can offer in the event of a theft or accident can easily outweigh the costs. However, you must ensure that you only buy riders that you need. Consider how you use your car and try to gauge the potential risks. Based on that, you will be able to create a policy that is truly comprehensive for your beloved car.