Adding On Car Insurance

One of the chief concerns with regard to car insurance is the amount that you would actually be able to claim with your car insurance policy in the event of an accident. Some add on covers that you can avail with your car insurance has been discussed in the article.

Add-on is nothing but additional coverage that you purchase with your car insurance, giving you an additional layer of safety. Some add on covers that you can get for a premium include the following:

•    Depreciation Reimbursement
•    Return of invoice
•    Windshield Glass Cover
•    Hospital Cash Cover
•    Roadside Assistance Cover
•    Personal Accident Cover

One of the chief concerns with regard to car insurance is the amount that you would actually be able to claim with your car insurance policy in the event of an accident. How much would your insurance cover actually pay you when you stake a claim? Now, with add on covers, you could expect your car insurance to reimburse you an amount that would bring some cheer in a rather gloomy economic scenario.

Depreciation Reimbursement Cover:

Also called the depreciation waiver cover, this is an insurance cover that protects the value of car parts from depreciation. These are add ons that would get you a full claim amount without any deduction on account of depreciation for an agreed time frame, when you replace the parts in question. This gives value for money invested in car insurance even if the car itself has grown older over the years.

Return of Invoice or Full Invoice Price Insurance Cover:

With car insurance, you could only expect depreciating value with every passing day. If your car has been consumed completely in an accident or if it has been stolen, your car insurance policy would be worth depending on how long it has been since your car’s purchase. With Return of Invoice add ons, you could expect your car value to defy the laws of gravity and stay put at its face value, or at the value as may have been agreed upon in your car insurance policy. When you buy a car for 6 lakhs, add on covers ensure that the value of the car stays at Rs 5 lakhs, even if normal depreciation would have brought it down to 4 lakhs otherwise.

Windshield Glass Cover:

This is a specific among add ons, where your car insurance would get you a new windshield glass, front or back, in case it gets broken during the tenure of the car insurance policy. The advantage with these add on covers is that your ‘No Claims’ bonus associated with your insurance cover would not be affected when you stake a claim for your windshield glass, while your windshield gets repaired or replaced cost-free, subject to the terms of the car insurance policy.

Hospital Cash Cover:

Accidents happen, and car insurance is all about protecting your interests when they do happen. You could enjoy the added advantage of your hospitalisation expenses being taken care of, by opting for  hospitalisation cash cover add ons to your insurance cover, where your hospitalisation expenses are paid up to the sum insured, to cover hospitalisation expenses of those who might have travelled in the insured car.

Roadside Assistance Cover:

Incidents that happen on the road need not be just accidents. There are times when you would need someone to stand by and be of service when you are stuck, alone or with vulnerable people, on account of a tyre burst, a flat tyre or plain breakdown. Add ons such as roadside assistance cover ensure that you get mechanics or specialists fix your problem or tow your car to the nearest garage, giving you full value for your car insurance policy.

Personal Accident Cover for Family or Passengers

Car insurance that you purchase with the add ons of personal accident cover provide compensation to protect your financial health when your personal health or those of your passengers may be at risk on account of an accident. Add on covers in this category includes insurance cover for the insured person, his or her family or other passengers in the car at the time of the accident. The car insurance policy covers accidental death, loss of limbs or other disability of a permanent nature arising out of the accident, partial or total.

How to Transfer Car Insurance of Second Hand Car

Car Insurance Transfer

Many of us while buying a second hand car often assume that the previous car owner must have had his car insured, so we don’t have to buy car insurance policy again. Moreover,

once the previous car owner would hand over the car keys and car insurance documents to you, the job of buying second hand car is done, however, this is not the case.

While buying the second hand car there are certain things to keep in mind. First thing is that driving car without car insurance in India is an offence and that applies to second hand cars too. So, you need to have car insurance papers with you.




Next important thing is that car insurance documents should be in your name and not in previous owner’s name and last thing to note is that the car insurance should be a valid one.

To transfer the existing car insurance policy in your name, you need to inform the car insurance company regarding the purchase of the car within fourteen days from purchase of the car. New owner or buyer can request for change of name in insurance certificate through application form. Other than application form and car insurance certificate, original registration certificate of the car is also required.

While doing so, the buyer should also know about the car insurance cover. Third party insurance is the basic car insurance cover which is the compulsion to buy, besides that, if you want a comprehensive plan, you can ask your insurer to upgrade the insurance policy at this moment.

Last thing but not the least, if you do not want to pay the high amount of premium the previous owner was paying for his car, you can opt for cheap car insurance. Or, while transferring the insurance policy in your name, you can ask your insurer to calculate the premium to be paid on the present value of the car in order to make the existing car insurance a cheaper one.

When Can a Car Insurance Claim is Rejected

Car Insurance Claim

When your car suffers through an accident and you face material damages, it is a tough time to deal with. During such situation, car insurance policy is the only hope. But, what if your car insurance claim gets rejected? This can be really hard time to handle but, the policyholder should not lose his/her patience and try to look at the details of the decision made by the insurance company. Sometimes rejection of an insurance claim can be a confusion or doubt.




This nowhere indicates the dishonesty of the insurance firm or end of all your hopes to get the recovery money as per your insurance claims.

To confirm the receiving of car insurance benefits, you need to look for reasons behind the denial of the entitlement for coverage. Major ones are mentioned below:

Having no coverage for what particular damage your car has gone through is a reason behind claim rejection. If your car is covered only under liability insurance and you have filed for collision coverage, then the claim will be automatically rejected.

Filing for uninsured motorist claim under your plan and other party turns out to be insured.

If you don’t qualify to the terms & conditions of insurance policy, the company holds right to reject the claim.

Lapse of your policy because of nonpayment even after declaration of grace period.

If the amount of damage cover exceeds your policy limits, then the insurance firm is not liable to pay for excess expense.

Damages occurred to the car under the influence of alcohol are not covered in the insurance policy.

If you own a second hand car and have not transferred insurance on your name, your claim would be rejected.

In any case, if you provide wrong information, your claim would be rejected.

If the car driver found unlicensed during accident, the insurance company is not liable to pay the insurance amount.

The cars bought for personal purpose and being used for commercial purpose have their insurance claims rejected.

Accident intimation delay can also be one of the major reasons behind rejection of insurance application.

If your policy doesn’t lack any aforementioned point, then you have a reason to dispute the decision of insurance company and file the coverage claim again.