A comprehensive motor insurance policy provides coverage against third-party losses and damages apart from damages and losses caused to insured vehicles. Despite its offerings, a comprehensive vehicle insurance policy does not offer complete coverage in unpredictable situations including vehicle engine damage, damages that occurred due to natural calamities, etc.
So, what are Motor Insurance riders?
The riders are optional add-ons to the basic comprehensive vehicle insurance policy. Motor insurance companies introduced rider benefits or add-ons to provide more comprehensive and 360-degree protection to your vehicle. In other words, the riders increase the basic coverage of a motor insurance policy and save you from various vehicle-related expenses.
Here we are discussing some common riders offered by motor insurance companies:
Common Motor Insurance Riders:
Engine Protection Cover: Whether you live in tire 1 cities of India or any other place clogged roads and undercover drains after rain are common everywhere. For such instance, engine protection cover rider comes as a relief. Under this rider, the insurer offers hydrostatic coverage wherein losses or damages caused to the vehicle’s engine due to consequential losses are covered.
Take an example of Bangalore flyover clogging due to heavy rains that occurred in August 2022. In videos and photos, we have seen many vehicles standing still in the middle of the flyover. The most common reason is the entry of water into their engines and consequently, the engines get damaged. This rider covers all such cases where your vehicle’s engine is damaged.
Zero Depreciation Cover: When you file a claim against your car insurance policy, then your insurer calculates the depreciated value of all the damaged parts of your vehicle instead their actual market value. The rate of depreciation depends on the model of your vehicle, its make, age, etc. Due to this reason, you may have to bear a good part of your claim amount by yourself. However, if you add a ‘Zero Depreciation’ add-on to your motor insurance policy, you will not have to bear the expenses of depreciation.
This means that when your vehicle meets with an accident, you do not have to bear any deductions as per the depreciation value of your vehicle. Because of the ‘Zero Depreciation’ rider, your insurer will bear all the expenses. Moreover, you become eligible to recover the full market value of your motor vehicle.
Towing and Road-Side Assistance Cover: Under this rider cover you get different types of round-the-clock assistance services from your insurer in case of a breakdown or accident of your vehicle. Replacement of flat tires, key replacement, towing of your vehicle, fuel refilling, etc. are covered under this rider benefit.
Personal Accident Cover: This is one of the most crucial riders that provides financial security to the family of the policyholder in case of an accident. Personal accident rider benefits cover instances like permanent or partial disability occurring to the policyholder or his/her death due to an accident.
Medical and Ambulance Assistance Cover: This rider benefit offers assistance in case of an accident wherein the policyholder needs immediate medical assistance and an ambulance. The insurer bears the cost of these expenses if you have added this rider to your motor insurance policy.
Vehicle Replacement: If your vehicle is stolen or wrecked beyond repairs, then this rider benefit comes as a rescue. If you have added a vehicle replacement rider to your base vehicle insurance policy, you get the replacement for your stolen or damaged vehicle equivalent to a new vehicle.
Rental Reimbursement Cover: Following an accident when your vehicle is sent for repair to the workshop, you may have to manage on your own to go to your home and for the same, you may rent a taxi or hire public transport. If you have added this rider, the insurer will reimburse the expenses of rental cars or taxis or public transportation.
Consumable Cover: This rider benefit covers the damages caused to any consumables like gearbox, coolant, and clutch box. The cost of these consumables is around 0.2 to 0.4% of your vehicle’s value.
Conclusion
The above-mentioned riders are some of the common and recommended riders that you can add to your base comprehensive motor vehicle insurance policy. However, you must remember that for these riders you have to pay an extra premium. So, select rider(s) wisely and as per your requirements.
