Motor insurance add-ons—once seen as optional luxuries—are quickly becoming essential components of vehicle insurance in India. With increasingly unpredictable weather, frequent natural disasters, and the growing complexity of modern vehicles, both new and seasoned vehicle owners are realising the value of comprehensive protection.

According to Policybazaar.com, a leading insurance aggregator, motor insurance customers are now actively seeking add-on covers to better safeguard their finances and ensure smooth post-accident assistance.

Paras Pasricha, Business Head – Motor Insurance at Policybazaar, explained that policyholders no longer treat add-ons as optional extras, but rather as vital tools to minimise financial risk and streamline the claims process.

Why Add-Ons Are Becoming Essential

India’s roads and weather have become increasingly volatile. From urban flash floods to severe pothole damage, and from advanced electric vehicles to vulnerable car batteries, standard car insurance policies fall short in many real-life situations.

This has led to a notable shift in consumer perception, as individuals now want customised, utility-driven insurance covers.

Policybazaar has observed that both new car buyers and owners of older vehicles are showing interest in these lesser-known but extremely relevant add-ons, which offer specific protections not found in traditional policies.

New-Age Add-Ons Gaining Ground

Let’s explore some of the high-utility motor insurance add-ons that are transforming vehicle safety and financial planning for Indian drivers:

Clutch Protector

Covers repair or replacement costs for parts like clutch plate and pressure plate, which are typically excluded from standard car insurance. As clutch wear-and-tear is a common but costly issue, this add-on offers significant relief.

Legal Protection Cover

Provides financial support for legal expenses if you're involved in a dispute or legal proceeding after an accident. It covers lawyer fees, defence costs, and court-related charges—making it highly useful in urban and high-traffic areas.

Daily Allowance Cover

Offers a fixed daily payout (e.g., ₹500–₹1,500) while your vehicle is in the garage for repairs due to a covered claim. This add-on is especially helpful for those who rely on their vehicles for daily commute or commercial use.

Loss of Personal Belongings Cover

Protects personal items (like laptops, gadgets, or wallets) stored in your car that might get damaged or stolen during an accident or a break-in. This add-on is increasingly relevant in urban theft-prone zones.

Battery Protection Cover (EV Focused)

Designed primarily for electric vehicles, this cover protects against battery failures due to mechanical breakdown, electrical faults, water damage, or short circuits. Some insurers also provide battery diagnostics and emergency jump-start services under this cover.

Hotel and Travel Expenses Cover

If your car meets with an accident far from home, this add-on reimburses your hotel accommodation and cab fares, ensuring that your travel plans don't get entirely disrupted.

Key Replacement Cover

High-security keys and smart locks are costly to replace. This add-on covers the expense of lost or damaged keys, and in some cases, the entire locking system—a blessing for high-end vehicle owners.

Tyre Protector Cover

Tyres are often damaged due to poor roads, sharp objects, or impact—and these are typically not covered under standard plans unless linked to an accident. This add-on also includes labour charges for tyre removal and replacement.

Why Indian Drivers Are Embracing These Add-Ons

There are several reasons behind the rise in demand for these new-age add-ons:

• Extreme weather like hailstorms, floods, and waterlogging are more frequent, damaging both exterior and internal components of cars.

• Electrification of mobility has introduced new components (like EV batteries) that require unique protection.

• Legal complexities in accident disputes have grown, making legal coverage more valuable.

• Increased vehicle usage, especially post-COVID, has made breakdown and downtime more impactful on daily life.

Shift in Insurance Mindset

Whereas earlier car owners would only opt for basic covers like Zero Depreciation or Engine Protection, today's customers are exploring a wide bouquet of coverage tailored to their needs.

This shift is also aided by digital platforms like Policybazaar, which allow easy comparison of plans, highlighting what each add-on covers, at what cost, and how it benefits the user.

The platform reports that these customised covers are helping policyholders reduce out-of-pocket expenses, particularly in high-damage scenarios like major accidents, urban theft, or critical part failure.

Benefits of Choosing Motor Insurance Add-Ons

Here are some of the key advantages of opting for insurance add-ons:

• Financial Security: Covers parts and incidents typically excluded in base policies

• Peace of Mind: Adds clarity and preparedness during unforeseen circumstances

• Smooth Claims Experience: Reduces disputes and delays by covering specifics clearly

• Customised Protection: Enables insurance to match your driving habits, usage, and location

Conclusion: Smart Insurance for a Changing World

As Indian roads, vehicles, and user expectations evolve, so must our approach to motor insurance. Add-ons are no longer accessories to your main plan—they are the pillars that offer targeted protection and financial cushioning in times of crisis.

The rising popularity of these features shows that Indian consumers are becoming more insurance-savvy, demanding plans that reflect modern needs—whether it’s protecting a car battery or ensuring you have a hotel stay if you break down 500 km from home.

In a world of increasing climate risk, legal complexity, and tech-centric vehicles, the smart move is to go beyond basic insurance. And thanks to platforms like Policybazaar, comparing and buying these critical add-ons has never been easier.

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