Car Insurance Add OnsMarch 21, 2023
Imagine you are buying a pizza. Just like how a plain cheese pizza can be enhanced with various toppings such as pepperoni, mushrooms, olives, etc.
a basic car insurance policy can be enhanced with various add-ons such as roadside assistance, rental car reimbursement, or coverage for high-value items.
And similar to how the toppings on a pizza can vary in cost, add-ons in insurance can also vary in cost. Also, different pizzerias may offer different toppings. Likewise, different insurance companies may offer different add-ons.
This means that it becomes imperative to carefully review and compare the add-ons available to ensure that you are getting the best value for your money. In this article, we discuss everything that you need to know about add-ons in car insurance.
What is an Add-on?
An add-on is an additional feature that you can add to your policy to enhance and extend its coverage at additional premiums.
What Add-ons are available with Car Insurance?
By understanding the different types of add-ons available in car insurance and carefully considering your needs, you can ensure that you have the right type of coverage. Here are the types of add-ons available with car insurance:
1️. Personal Accident Cover
The Personal Accident Cover is an add-on that provides financial compensation for expenses incurred due to bodily injuries sustained in an accident. It is particularly useful for individuals who may have a high risk of accidents, such as those who travel frequently or have a high-risk occupation.
The coverage provided by the Personal Accident Cover can vary depending on the policy and insurance company.
2️. Agency Repairs Add-On
This is an add-on offered by insurers that provides coverage for car repairs. It ensures that your car is repaired at the original manufacturer's workshop and only genuine spare parts are used. Having your car repaired at the original manufacturer's workshop will ensure that your car is repaired correctly and to the manufacturer's specifications. This will retain the performance of your car and using genuine spare parts also means that your car is covered.
The add-on is generally provided for 2 years and can be increased to 5 years by certain insurance companies in exceptional cases.
3️. Roadside Assistance Add-On
Roadside Assistance is offered by car insurance companies either as a part of their basic cover or as an add-on. It provides coverage for various types of emergency services while you are travelling on road. This assistance can be particularly useful for individuals who frequently travel long distances, or for those who drive older vehicles that are more prone to breakdowns.
This feature provides coverage for –
Say you are on a long drive and your vehicle breaks down. It needs a battery jumpstart or any further repairs arising due to a mechanical issue. Such assistance will be covered under the roadside assistance cover.
If your car cannot run on its own either due to an accident or needs repairs at a garage, the insurance company will provide you with a towing facility. Your car will be moved with the help of another heavy vehicle.
If your car has a flat tire, the insurance company will send a mechanic or technician to replace the flat tire with another one. They might also suggest that you visit the service centre later for a regular service check-up.
If in case you run out of fuel and are unable to locate any fuel stations nearby, your insurer will also make arrangements for fuel. A technician will assist you with the required fuel to get your vehicle started and reach the nearest service station, fuel station, or even your destination.
This feature might be inbuilt or an add-on. It provides coverage for emergency medical services that may be needed in the event of an accident or other emergency while on the road.
4️. GCC Coverage Add-On
GCC Coverage, also known as Gulf Cooperation Council coverage, is an add-on offered by some car insurance companies if you frequently travel to neighbouring GCC nations such as Bahrain, Kuwait, Oman, Qatar, etc. This feature provides coverage for any damages or injuries sustained while driving in these countries.
GCC coverage is particularly important as it can be mandatorily required under their motor laws. Without GCC coverage, you may not be able to enter the country or may be subject to fines or penalties.
5️. Car Rental Add-On
This add-on provides coverage for the cost of renting a car in the event that your own car is damaged or unable to be driven due to an accident. This feature can be particularly useful if your car is involved in an accident or suffers significant damage that requires repairs. If in such cases, you need a replacement vehicle, this add-on will help you get a rental car while yours is being repaired.
6️. Off-Road Cover
This add-on provides coverage if you frequently participate in off-road activities in the UAE. Off-roading is a very common adventure sport that includes desert rallies, dune bashing, and other adventures. These activities can be high-risk in nature and hence, may result in significant damage or injuries to vehicles, drivers and passengers. The add-on covers any injuries sustained during these activities and any damages incurred to your vehicle.
7️. Oman Extension Cover
This add-on is a mandatory requirement if you’re travelling to Oman by car. Without it, you will not be permitted to enter Oman. It covers damages and injuries caused to you and your car. However, third-party damages will not be covered under this add-on. You can buy third-party liability insurance online or while you are at the border.
8️. Passenger Cover
This add-on offers coverage for passengers in the event of an accident. It works in two ways -
If they pass away due to the accident, their family is given financial assistance.
If they face a permanent disability because of the accident, they are given financial coverage for the same.
Please note that these add-ons will vary from insurer to insurer and some might provide these features as an in-built feature, while others might offer them at additional premiums. And, these are just a few of the many add-ons insurers offer - you can go through the policy wording to know about the same.
How to Add These Add-ons to Your Policy
Many insurance companies include certain add-ons as part of their policies, while others require an additional premium to add them. To find out which add-ons are available -
➔ You can either visit the insurance company's website or a broker's website.
➔ Enter your vehicle details, after which you will be directed to the quotes page.
➔ From there, you can compare the in-built add-ons offered by different insurance companies
➔ Choose the policy that best meets your needs.
➔ If you are using a broker's website, you can also compare quotes from multiple insurance companies.
➔ You can then select the one that offers the most add-ons as part of their policy.
Add-ons are available either as additional coverage or as an in-built feature in car insurance. However, this may vary from policy to policy. To find out which add-ons are available and at what costs, it is recommended to check and compare the various options offered. By doing so, you can tailor your car insurance policy to meet your specific needs.