This is where optional add-ons come into play. While they increase the premium, they can significantly reduce out-of-pocket expenses if a claim arises. However, not every add-on offers the same value for every driver.
Insurance experts say motorists should choose add-ons based on where they live, the age of their vehicle, and the risks they are most likely to face.
Engine Protect is the first add-on experts recommend
Among all optional covers, Engine Protect is the one every expert recommends for motorists living in cities that experience frequent flooding or waterlogging.
"Engine Protect Cover is particularly valuable as it covers engine damage caused by water ingress, which is typically excluded under standard policies," said Nitin Deo, Chief Technical Officer at Zuno General Insurance.
According to Kiran A Kumar, Head of Motor Underwriting at Tata AIG General Insurance, an Engine Secure add-on can cover the repair or replacement of internal engine parts, gearbox, transmission, and differential assemblies damaged by water ingress, subject to policy terms.
For electric vehicle owners, additional protection can be useful as well.
Shivendra Pancholi, Executive Director, Affinity Business at Coverfox, also recommends Engine Protect, saying it covers engine damage caused by water ingress or hydrostatic lock, subject to policy terms.
Zero Depreciation and Consumables Cover can reduce repair costs
Many policyholders focus on whether a claim is approved, but overlook how much they may still owe after settlement.
One of the largest deductions in a standard claim is depreciation on replaced parts. A Zero Depreciation add-on helps reduce or eliminate these deductions, depending on the policy terms.
Kumar said Zero Depreciation Cover helps lower out-of-pocket expenses by covering depreciation on replaced parts.
Saigal added that the cover allows policyholders to receive the full replacement cost for eligible parts, including plastic, rubber and glass components, without age-based depreciation deductions as per the policy terms.
Experts also recommend the Consumables Cover, which pays for items typically excluded from standard claims. According to Deo, Consumables Cover reimburses the cost of engine oil, lubricants, nuts, bolts and other consumables replaced during repairs.
Pancholi said the cover extends to items such as coolant, screws and filters, which may otherwise have to be paid for by the policyholder even when the main repair is covered.
Return to Invoice offers additional protection for newer cars
Another add-on experts recommend, particularly for relatively new vehicles, is Return to Invoice (RTI).
Under standard policy terms, insurers generally compensate policyholders based on the Insured Declared Value (IDV), which accounts for depreciation. RTI bridges that gap by offering a higher payout if the vehicle is declared a total loss, subject to policy terms and conditions.
As extreme weather events become more frequent, insurance experts say reviewing add-on covers during policy renewal is just as important as comparing premiums.