Auto Insurance Add-Ons: 4 Options Worth Considering

A car insurance add-on is the additional plan insurers offer to strengthen their policyholders' coverage. Given that add-ons are supposed to provide extra protection to an already-insured vehicle, your insurance premium will increase if you take it. Remember that these covers are available in comprehensive and not third-party car insurance policies. This is because third-party insurance covers the damages and injuries to another driver, not your insured vehicle. Check out some common add-ons worth considering. 

The Roadside Assistance Add-On

Taking out this insurance add-on covers you for any services you receive if your car sustains damage while on the road. Some circumstances that may leave you stranded on the roadside include a mechanical breakdown, tire punctures, the need for jumpstart services, or running out of fuel. This is an invaluable add-on if you are on the road a lot.

The Engine Protection Add-On

The engine is an essential part of the vehicle, and taking up engine protection coverage establishes financial protection against different forms of engine damage. Notably, various things can cause your vehicle engine to malfunction, including the ingress of water and engine part failure due to oil leaks. Moreover, engine repairs and replacement can be expensive, yet you don't have to worry about paying for repairs out of pocket when you have this cover.

The Return to Invoice Add-On

If your vehicle gets stolen or suffers a total loss, your insurer will typically pay you the Insured Declared Value (IDV) to settle the claim. The IDV refers to the depreciated value of your vehicle based on its age, an amount that is significantly lower than what you paid to purchase your automobile. However, when you take out the return to invoice plan, the IDV of your vehicle will remain equal to the original price at which your vehicle was purchased. This means that you can replace your automobile without any financial difficulties.

The Zero Depreciation Add-On

Over years of continued use, your vehicle will experience wear and tear, which, generally, isn't covered under your vehicle insurance. In case of damage, worn-out parts may be repaired or replaced. Since insurance doesn't cover depreciation, the devaluation cost will be deducted from the parts repair or replacement costs. While auto repair professionals charge the full amount, your insurer will pay after they deduct depreciation. As such, you'll pay the depreciation cost out of pocket. However, this doesn't have to happen if you take the zero depreciation add-on.

The add-on options highlighted above are worth considering if you've taken out comprehensive car insurance. They offer additional protection that standard auto insurance may not provide. Speak to your auto insurance provider to learn more about these add-ons.