Buy Niche Riders to Improve Car Insurance Coverage

improve car insurance coverage.

Everyone should know that since car insurance coverage is mandatory in India, everyone who possesses a vehicle has a motor insurance policy. But, how many policyholders know actual features of this insurance product and how it helps other than reimbursement for an auto accidental claim?

The current trend in vehicle insurance sector is to have high-end additional features along with compulsory car insurance in India.

Riders help in making a policy tailor-made for auto-owners’ requirements. Generally, by paying extra money, insured purchase himself a host of benefits.

No Claim Bonus Protection

In car insurance coverage, policyholder is not eligible for a ‘no claim bonuses’ only in case of a claim in the subsequent year. However, in case this extra coverage of NCB protection had been chosen for, even in case there has been a claim in the previous year, the current NCB can be retained.

Hydrostatic Cover

There have been many situations where Indian car insurance companies rejected to pay a claim because the covered vehicle was flooded in water or it was damaged when parked a building for too much time.

In case insured person has ever come across this incident, he would surely understand how maddening the whole situation is because Indian car insurance companies describe exclusions that they have the right to reject to pay a claim.

In such incidents, hydrostatic cover proves to be very helpful as an extra rider. This rider covers vehicle damages which are caused by a consequential loss.

Depreciation Cover

Depreciation is the area of concern for majority of vehicle insurance policyholders when it comes to claim. Under this plan, the basic wear and tear is not covered. In such a situation, an additional rider of depreciation coverage depends on the age of a vehicle as well as on components types can surely save some handsome amount of money.

In case metallic part of a car is damaged within six months of purchase, then depreciation is not deducted. However, if insured vehicle is damaged after six months and before one year, then five percent depreciation is deducted.

At this stage, around 95 percent of the claim will be paid. Those who have been opted for this rider don’t need to experience deduction for depreciation irrespective of the claim time.

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