Vehicle Insurance Add ons

What are Motor Insurance Add ons (also known as Riders)?

Motor insurance riders or add-ons are additional coverage options that can be added to a basic car insurance policy to enhance protection. 

Types of motor insurance add-ons:

1. Zero Depreciation Cover: In the event of a claim, only the depreciated value of the parts are paid by the insurer. This add-on ensures that the insurance payout is not affected by the depreciation of your car’s parts, this ensures the full value of the damaged or stolen parts is paid by the insurer.
2. Engine and Gearbox Protection: This covers damage to your car's engine and gearbox due to water ingression, oil leaks, or other causes that are not typically covered under standard policies. This is beneficial for those living in floods prone zone
3. Roadside Assistance: This add-on provides 24/7 emergency services like towing, breakdown assistance, flat tire repair, or battery jump-start, among other on-road support services.
4. No Claim Bonus (NCB) Protection: No Claim Bonus, which is a discount on your premium for not making any claims during the policy term. If you make a claim, you are not eligible for the discount next year. NCB protection add-on allows you to retain your No Claim Bonus Discount.
5. Return to Invoice Cover: This add-on ensures that in case of total loss or theft of your car, the insurance company will reimburse you the entire invoice value of the car (including taxes, registration, etc.), rather than its depreciated value.
6. Passenger Cover: This provides coverage for injuries to passengers in your vehicle in the event of an accident. It is separate from the driver’s coverage.
7. Key Replacement Cover: This covers the cost of replacing lost or stolen car keys, including any associated costs such as key reprogramming.
8. Tyre Protection: This add-on covers the repair or replacement of tyres damaged due to road hazards or accidents.
9. Consumables Cover: This covers the cost of consumables such as brake oil, engine oil, lubricants, nuts, bolts, and other non-permanent parts that might need replacement during repairs after an accident.
10. Windshield Glass Cover: This covers the cost of repairing or replacing the windshield and windows in case of damage, without affecting the No Claim Bonus.
11. Personal Accident Cover: This provides coverage for the driver and sometimes the passengers in case of accidental death or injury.
12. Third-Party Liability Cover: This add-on increases your third-party liability coverage, which protects you in case your vehicle causes injury, death, or damage to a third party's property.

These add-ons help tailor your motor insurance policy according to your specific needs, offering more comprehensive protection and peace of mind. 

Please note that not all insurers provide all the riders for all vehicles. 

Factors Insurers consider while offering riders or add-ons

1. Type & Age of Vehicle

• New vehicles are mostly eligible for riders like zero depreciation or return to invoice
• Luxury or high-end cars may be offered more comprehensive rider options.
• Older vehicles may have restricted rider options due to wear and risk.

2. Geographical Location

• High-risk areas (flood-prone, theft-prone, etc.) influence add-ons like engine protection.
• Cities with poor roads might increase uptake of tyre or suspension protection riders.

3. Usage Pattern of the Vehicle

• Commercial vs personal use affects which riders are applicable.
• Vehicles used frequently or for long-distance travel may benefit from roadside assistance or engine protection.

4. Claim History of the Insured

• A high claim frequency may limit eligibility for certain riders or increase premiums.
• Good claim history may make more riders accessible with discounts.

5. Insured Declared Value (IDV)

• Riders are typically calculated as a percentage of the IDV, so a higher IDV makes the cost of riders higher.
• Some riders may only be available if the IDV exceeds a certain limit.

6. Policy Type

• Riders are mostly offered with comprehensive policies, not third-party only.
• The base policy must allow rider attachments.

7. Insurer’s Risk Appetite & Underwriting Guidelines

• Internal guidelines and risk models define which riders are offered, and to whom.
• Some insurers avoid high-risk riders in certain regions or for certain vehicle types.

8. Market Trends & Competition

• Popularity of certain riders in the market (like zero dep) may push insurers to include or promote them.
• Competitor offerings influence the availability and pricing of riders.