5 Important Car Insurance Add-Ons You Must Know About - AllCarIndex

5 Important Car Insurance Add-Ons You Must Know About

Jun 24, 2025

Auto insurance is an important aspect of car ownership; it provides financial security in case of an accident, theft, or hurricane. Typical auto insurance policies offer basic insurance which may not cover all damages or accidents.

The car insurance industry has identified this gap in basic coverage and has been providing optional covers, which can build onto your policy. Car insurance add-ons will expand your cover to tailor to your driving habits, vehicle and your location. In this article, we’ll be discussing the top five car insurance add-ons for all car owners.

Zero Depreciation Cover

Commonly referred to as “bumper-to-bumper” or “nil depreciation” cover, zero depreciation means your insurer will not deduct the depreciation value of any parts of your car when considering a claim. Generally, plastic, rubber, fiber, or metal components depreciate over time, and this is accounted for in reimbursements. This add-on will overrule that. Here is why it matters:

- Ideal for new or luxury vehicles

- Will help you get the full value of a claim against parts replacement

- Will dramatically lower the amount you will have to pay for the repairs after an accident

Who should get it: First-time car buyers, owners of premium cars and those living in cities with higher incidences of car accidents.

Engine Protection Cover

This is a great addition to your cheap car insurance. The add-on protects the engine and gearbox of your vehicle against damage that is not covered under a standard policy. This could include damage related to water ingression, oil leakages or hydrostatic lock (which occurs during flooding). It is important because:

- Standard policies do not typically cover engine-related damage

- Engine parts can be very expensive to repair

- Important for those living in flood-prone areas

Who should get it: Residents in regions with heavy rain, people who frequently drive through waterlogged streets, and owners of expensive cars with confusing engine systems.

Tire Protection Cover

tire protection add-ons reimburse the repair or replacement costs of your tires and tubes for damages caused by cuts, bursts, or other road hazards, damages that are not otherwise covered by standard car insurance policies. Here is why this add-on matters:

- Tire damages are very common

- Run flat or high-performance tires are very expensive

- Reduces out of pocket costs for tire maintenance

Who it is recommended for: Anyone who often travels on rough roads, users of the highway, or owners of premium vehicles that use specialized tires.

Personal Accident Cover

This add-on provides financial compensation in the event of death, permanent disability, or injury to the policyholder or other occupants due to a car accident. While standard policies provide a compulsory cover for the owner-driver, this adds an additional layer of protection for passengers and drivers other than the owner. Here is why it matters:

- Provides additional protection for all occupants of the vehicle

- Covers medical costs and financial support for serious injury

- Provides peace of mind for families and frequent group travelers

Who it is recommended for: Families, carpool passengers, or anyone traveling regularly with passengers or other occupants.

Roadside Assistance Cover

Roadside assistance provides compensation to help out when your car breaks down unexpectedly. For example, it may provide towing, battery jump-start, flat tire change, fuel delivery, or lockout assistance. Here is why it’s important:

- Provides assistance when it matters most (and especially in remote areas)

- Save time and money on third-party towing services

- Ideal for those taking long road trips or travelling alone.

Who should have it: Highway travelers, those with older vehicles, or anyone who isn't mechanically inclined.

The Value of Car Insurance Add-ons

Adding optional covers to your policy may increase your premium slightly but the benefits are much greater than the cost incurred. Here are a few decent reasons to consider adding additional covers to your car insurance policy:

- Personalised protection: Tailor your insurance policy to your lifestyle, your car, and the risks of where you drive.

- Lower out-of-pocket expenses: Most add-on products protect you from unforeseen, expensive repair bills that your standard policy may not cover.

- Increased peace of mind: Whether it be an engine failure or you are stranded because of a flat tire, you can have confidence that you will get help, and recompense, if needed.

- Better resale value: Cars with comprehensive cover and add-ons have better service histories and the possibility for higher resale prices.

How to Choose the Right Add-Ons for Your Car

Car insurance add-ons can offer additional protection but only certain options will matter to certain drivers. Choosing the right combination of add-ons is a balance depending on your car, location, intended use, and budget. To start with, look at the age and model of your car. New or luxury cars will benefit more from zero depreciation and engine cover options than older cars for which you may not want to pay a higher premium.

Next, consider where and how much you drive. For example, if you regularly take long drives or drive in remote parts, roadside assistance is a great investment. Similarly, if you drive a lot in the city or deal with rough roads and potholes, you may want to consider a tire protection add-on.

If you're a family of drivers or enjoy carpooling with friends, you should get personal accident cover for everyone in the vehicle, instead of just for the main policyholder.

Your local weather should be a consideration. Those in areas that are flood-prone or experience monsoons are going to want to consider an engine protection add-on, which could cover engine water damage that is not typically covered by basic plans.

Finally, always make sure to see if the add-ons you want to purchase are going to be feasible over the long-term. In some circumstances, it may help to bundle several add-ons with a comprehensive plan. The goal should be to get the best coverage for your needs without paying an arm and a leg for it.

Endnote

Do not ignore add-on policies when taking out or renewing your car insurance. The cost of add-ons may seem steep at first but they may be invaluable later on (financially, practically and even when obtaining assistance in certain emergencies).

Always compare policies and read the fine print. Then select add-ons that suit your particular circumstances and match a balance of cover. This way, you are not just getting cheap motor vehicle insurance, but protective insurance coverage for your everyday driving.