Five riders that you should add to your car insurance

6 MinsSept 7, 2021

If your car has survived the Indian monsoon so far, you are lucky. But instances of cars floating away in floods, trucks and jeeps in potholes across the country, trees falling on vehicles, and vehicles wholly submerged in parking lots are common, as we have this year too.

smart car care tips

With climate change causing extreme weather events like cloud bursts more frequent, the only way to guard against these calamities affecting you adversely is preventive maintenance and additional insurance coverage. Here are some tips that will help you.

Preventive maintenance tips:

  • Pre-monsoon service: Since prevention is always better than treatment, and also cheaper, always do a pre-monsoon service of your vehicle. A full-body service will ensure the quality of your tyres is checked; brakes are working, as are your head-and-tail lights. The service centre will also check for leaks, windshield wipers, and the accessory belt of your car. A basic servicing of your cast starts at around Rs. 1,400 – Rs 5,000 depending on the kind of car. Costs of repairs and servicing will total up to Rs. 15,000 for replacements.
  • Ceramic paint protection: A coat of ceramic paint before every monsoon can help in protecting your car from rainwater. A can of this paint costs around Rs. 1,200, and a local mechanic can do the job for around Rs. 1,000.
  • Anti-rust underbody coating: This undercarriage anti-rust protection will protect the underside of your car from rusting. It is likely to cost you Rs. 4,000 – Rs. 8,000 

[Also Read: Tips to ensure a smooth run for your new car]

Car insurance riders:

While the preventive maintenance will help you keep your vehicle in a proper condition during monsoons, given the kind of frequent extreme climate events that we are witnessing, it also makes sense to buy additional protection for your car. The following insurance riders are the most popular and don’t cost an arm and leg.

1. Engine cover: Your car is submerged in water. You manage to get into it and try to start it. It won't start, and you have messed up your engine. An 'Engine Coverage Rider' is of great use in such situations as it covers your engine seizing or getting into a ‘hydrostatic lock’ because of waterlogging. This coverage will cost you around 0.5% of your IDV (insured declared value). For example, if your car’s IDV is Rs. 3 lakh, this rider will cost you Rs. 1,500.

2. Roadside assistance: Your car won’t start. You are stuck in the middle of the city or on the highway. You will need roadside assistance. Such a rider will again cost you about 0.5% of your IDV.

3. Return to invoice: The RTI (return to the invoice) rider is a vital rider to buy if you live in a region where damage due to monsoons is common, say a low-lying area prone to flooding. This rider comes into use when there is damage to over 75% of your car. When your vehicle has to be written off, the difference between the IDV and the original invoice price is significant, especially if your car is slightly old. Without this rider, the most the insurance company will pay you in the IDV. An RTI rider will mean that the insurance company will pay the invoice value of the car. It will go a long way towards helping you buy a new vehicle. Just remember that this rider is only available for cars up to three years of age. Admittedly, it is more expensive than the other riders, often costing around 10% more than a standard insurance policy. But it is worth it.

4. Minor expenses rider: Expenses on parts like nuts, bolts, distilled water and grease are very common in the rains and these items are not covered under regular insurance. The minor expenses rider, which cost 0.2%-0.4% of the IDV, takes care of these expenses.

5. Rental reimbursement: When your car is sent for your significant repairs, this rider covers your cost to rent another vehicle for the duration.

Axis Bank has partnered with leading insurers like TATA AIG General Insurance and Bharti AXA General Insurance to offer motor insurance products to meet all your needs. Visit our website to find out which plans work for you.

Disclaimer: The Source, a content creation and curation firm has authored this article. Axis Bank does not influence the views of the author in any way. Axis Bank and The Source shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.