When purchasing car insurance, you’ll often be presented with a range of add-ons—optional coverages that offer additional protection beyond the standard policy. While these add-ons can enhance your coverage, they also come at an additional cost. It’s important to understand which add-ons are worth investing in and which might not be necessary based on your driving habits and needs.
In this article, we’ll explore some of the most common car insurance add-ons and help you decide which ones are worth it for your specific situation.
1. Roadside Assistance
Roadside assistance is one of the most popular car insurance add-ons and for good reason. It provides help when you’re stranded on the road due to a breakdown, flat tire, or dead battery, or even if you’ve locked yourself out of your car. Roadside assistance typically covers services such as towing, jump-starts, flat tire changes, and fuel delivery.
Is It Worth It?
Roadside assistance is generally worth it if you drive frequently or commute long distances. It’s especially useful for those who may not have access to other forms of roadside help, such as through a car manufacturer’s warranty or an auto club membership. The peace of mind that comes with knowing you can get help in an emergency makes this add-on valuable for most drivers.
2. Zero Depreciation Coverage
When you file a claim for damages to your car, the insurance company typically factors in depreciation, meaning they reduce the claim payout based on the age and wear of your car parts. With zero depreciation coverage, the insurer does not consider depreciation, meaning you’ll receive the full value of the car parts replaced in a claim.
Is It Worth It?
Zero depreciation coverage is especially worth it for new cars (typically less than five years old). If you’ve recently bought a new vehicle, this add-on ensures you get maximum value for repairs in case of an accident. However, for older cars, the add-on might not be as beneficial since the cost of repairs could be lower than the add-on’s price.
3. Engine Protection Cover
Engine protection cover provides financial protection for damages specifically related to your car’s engine. This add-on is useful if the engine is damaged due to waterlogging, oil leakage, or other mechanical failures not covered under a standard insurance policy.
Is It Worth It?
This add-on is highly recommended for drivers living in areas prone to flooding or heavy rains, as water damage to engines is common in such regions. Additionally, if you drive a high-end or luxury car with an expensive engine, this cover can help protect you from costly repairs. For those with regular cars in low-risk areas, however, this add-on may not be necessary.
4. Personal Accident Cover
Personal accident cover provides financial compensation for injuries or death resulting from an accident, regardless of who was at fault. It typically covers the policyholder and sometimes passengers as well, providing a lump sum payment in the event of serious injury or death.
Is It Worth It?
For most drivers, personal accident cover is an essential add-on, especially if you don’t already have life or health insurance that provides similar protection. This add-on ensures that you and your family are financially protected in the event of an accident, making it worth the investment for most policyholders.
5. No-Claim Bonus Protection
The No-Claim Bonus (NCB) is a discount awarded to drivers for not filing any claims during the policy year. However, if you make even a minor claim, you could lose this bonus and the discount on your premium. NCB protection allows you to retain your No-Claim Bonus even after filing a claim.
Is It Worth It?
NCB protection is particularly useful if you’ve accumulated a significant No-Claim Bonus over several years, as losing this discount can lead to higher premiums. It’s a good option for drivers who have maintained a clean driving record but want peace of mind in case they need to file a small claim. However, if you’re new to driving and don’t have much of a bonus to protect yet, this add-on may not be necessary.
6. Consumables Cover
Consumables cover pays for the cost of consumable items, such as engine oil, brake fluid, nuts and bolts, and other small components that are typically not covered under standard car insurance policies. These items often need to be replaced after an accident or during repairs.
Is It Worth It?
This add-on is particularly valuable if you own a high-end or luxury vehicle, where the cost of consumables can add up quickly. For regular vehicles, the cost of consumables may not be high enough to justify the add-on. If you’re willing to pay for these items out-of-pocket during repairs, you might not need this cover.
7. Return to Invoice
Return to invoice cover ensures that in the event of a total loss—such as theft or a car being written off in an accident—you receive the full invoice value of your car, rather than the depreciated market value. This add-on is particularly valuable if your car is still fairly new, as it compensates for the gap between the car’s current market value and its original purchase price.
Is It Worth It?
If you’ve bought a brand-new car, return to invoice is highly recommended, as cars depreciate rapidly, especially within the first year. This add-on can save you from significant financial loss if your car is stolen or totaled. However, for older cars that have already experienced significant depreciation, this coverage may not be necessary.
8. Key Replacement Cover
Key replacement cover reimburses the cost of replacing lost or stolen car keys. It may also cover the cost of reprogramming the car’s security system if needed.
Is It Worth It?
Key replacement cover is worth considering for owners of cars with expensive smart keys, which can cost hundreds of dollars to replace or reprogram. For regular cars with traditional keys, this add-on may not be necessary, as the cost of replacement may not justify the added premium.
9. Gap Insurance
Gap insurance covers the difference between the car’s current market value and the remaining loan balance if your car is totaled in an accident. This ensures that you won’t be stuck paying off a car loan for a vehicle you can no longer use.
Is It Worth It?
Gap insurance is a must-have for drivers who are leasing a vehicle or have financed a car with a small down payment. If your car’s current market value is less than what you owe on your loan, gap insurance can save you from significant financial loss. For those who own their car outright or have paid off most of the loan, this add-on might not be necessary.
10. Windshield Protection Cover
Windshield protection cover covers the cost of repairing or replacing your car’s windshield if it’s damaged by stones, debris, or other hazards.
Is It Worth It?
This add-on is useful for drivers who often travel on highways or roads where windshield damage is more likely to occur. If your car’s windshield is expensive to replace, this cover can be a valuable addition. However, if windshield damage is rare in your area, this may be an unnecessary expense.
Conclusion: Which Car Insurance Add-Ons Are Worth It?
The value of car insurance add-ons depends largely on your driving habits, the value of your vehicle, and your location. Here’s a quick recap to help you decide:
- Worth It for Most Drivers: Roadside Assistance, Personal Accident Cover, Zero Depreciation (for new cars).
- Recommended for Specific Situations: Engine Protection (for flood-prone areas), Return to Invoice (for new cars), and Gap Insurance (for leased or financed cars).
- Depends on Vehicle Type: Consumables Cover, Windshield Protection, Key Replacement (more valuable for luxury or high-end vehicles).
Ultimately, the best strategy is to evaluate your personal needs and choose add-ons that provide real value based on your car, location, and driving habits. Keep in mind that while these add-ons can increase your premium, they can also offer valuable protection that could save you money in the long run.
