Understanding the benefits of the 7 major car insurance riders

Due to various unpredictable factors like weather, road quality and other drivers, even comprehensive car insurance plans sometimes fall short of giving you 360° protection.

Car insurance riders are essentially additional benefits you receive at an additional cost; optional add-ons to any standard plan that provide protection against situations that a regular comprehensive plan might not cover.

Related: Comparing car insurance- how to choose the right policy?

Engine Coverage Rider

For a country like India, where the arrival of Monsoon means clogged roads and smoking exhaust pipes, the Engine Coverage Rider can provide plenty of relief. Insurers provide hydrostatic cover, which covers car damages caused due to a consequential loss. The insurance company will cover engine repair in case it is damaged due to leakage of oil, water stalling etc. if you opt for this rider.

Roadside Assistance and Towing Rider

The RSA rider provides car owners a number of extremely important services that could be of great help in case you have an accident or even if your car breaks down in the middle of the road. RSA offers 24x7 varied kinds of assistance, such as fuel refilling, lost key recovery, flat tyre change, battery jumpstart, etc. To know more, read this comprehensive guide to RSA.

Related: What to do after a car accident

Zero-Depreciation Cover

When you file an insurance claim, a standard third party insurance plan will consider the depreciated value of the damaged parts rather than their present market value. The depreciation rate varies depending on factors like the make, model and age of the car. You, thus, end up paying a considerable portion of the full claim amount from your own pocket. A zero depreciation cover, however, guarantees full claim amount with zero depreciation deduction. Thus, if your car is damaged in a car accident, your insurer will cover the entire cost, rather than just a portion of it.

Personal Accident Cover

This secures your family's future in the event of a permanent disablement or in the unfortunate circumstance of your death. You can get coverage of up to 2 lakhs for any damage caused to the driver while travelling, mounting, or dismounting from the car. Some insurers also offer optional accidental covers for co-passengers. This rider applies in case of accidental death, temporary partial disability and permanent partial/total disability caused by road accidents.

Ambulance and Medical Expenses Rider

The worst case scenario with a car accident is that you or another involved party suffers grave injuries and need to be rushed to the hospital for emergency treatment. This rider compensates you for the ambulance charges as well as medical expenses of up to approximately 10,000 INR.

Vehicle Replacement

In case your car gets damaged beyond repair in an accident, or is stolen, surviving without a car, even for a couple of days, can be extremely inconvenient. Insurance companies declare these cases as a 'total loss', which means that the claim amount received under such circumstances is less than the actual market value of the car and not nearly enough to provide sufficient cover or get a replacement. Having a vehicle replacement cover will get your car replaced with a new equivalent car.

Related: Just bought a new car? Here’s what to do next!

Rental Reimbursement

Once your car has been sent to the repair centre, managing without one can be extremely cumbersome. You would have to carpool, take public transport, or even rent a car in the absence of your own, so you can go to work or for other commitments. Having a rental reimbursement insurance plan would help you cope with these costs, by paying for your car rental bills during this time.

The next time you’re buying or renewing a car insurance policy, make sure you ask about these riders and include the ones you feel are suitable to your needs.

[Source: https://www.tomorrowmakers.com/articles/car-insurance/understanding-the-benefits-of-the-7-major-car-insurance-riders-]