Basic motor insurance isn’t enough anymore; why these secret add-ons are becoming essential

With changing weather patterns, frequent natural calamities, increasingly unpredictable driving conditions and vehicles becoming more technologically advanced, motor insurance add-on covers are no longer viewed as optional luxuries, but as essential components of a well-rounded motor insurance plan.

Paras Pasricha, business head-motor insurance at Policybazaar.com, says as driving environments become more unpredictable and vehicles grow more technologically advanced, customers are becoming more proactive about risk protection. We are seeing a clear shift in how policyholders approach motor insurance. Add-ons are no longer seen as optional—they’re becoming essential to a comprehensive motor insurance plan. This shift isn’t limited to new vehicles. Even owners of older cars are increasingly opting for add-ons to boost reliability and coverage. While Zero Depreciation and Engine Protection remain popular, there’s rising interest in high-utility covers like battery protection, clutch and tyre protectors, key replacement, daily allowance, and loss of personal belongings cover.

“Cars, whether petrol, diesel or electric, are not just modes of transport, they are equally vital assets. The add-ons help customers ensure smoother, faster and hassle-free claims protecting them from unexpected out-of-pocket costs and offering greater peace of mind,” said Pasricha.

Here are few lesser-known motor insurance add-ons you must know:

Clutch protector: This add-on cover in motor insurance provides financial protection for damage or wear-and-tear of the clutch assembly—a part typically excluded under standard motor insurance policies. It covers the repair or replacement costs of the clutch plate, pressure plate, and related components even due to non-accidental damage.

Legal protect: This is an optional add-on in motor insurance that covers legal costs and expenses arising from disputes or legal proceedings following an accident. It covers defence costs in case of criminal charges related to the accident and also the cost of hiring a lawyer or legal representative in case of a third-party conflict.

Daily allowance cover: This add-on provides a fixed daily pay out to the policyholder when their insured vehicle is undergoing repairs at a garage after an accident or damage covered under the policy. A fixed amount (e.g. Rs 500-1,500 per day) for each day the vehicle is in the garage. For instance, if the vehicle owner’s car is being repaired after an accident and they're unable to use it for 7 days, and your policy includes a daily allowance of Rs 1,000, you would receive Rs 7,000 as compensation.

Loss of personal belongings cover: Although your comprehensive car insurance will cover you for the stolen car, it will not cover for the belongings left in there. This add-on provides compensation if the vehicle owner’s personal items are stolen, damaged, or lost from your insured vehicle due to an accident or break-in.

Battery protection cover: For an electric vehicle the battery repair/replacement can cost Rs 50,000 to several lakhs. As standard policies do not cover battery wear and tear, age-related failure, or manufacturer defects thus, battery protection cover helps to reduce out-of-pocket expenses for sudden battery failure. It ensures coverage for any electrical/mechanical failure like water ingestion or short circuits and even damage from an accident is covered. Some insurers offer battery diagnostics and jump-start assistance under this add-on

Hotel & travel expenses: This add-on pays for cab and hotel expenses in case accident happens far from home.

Key replacement cover: Now all mid-to-high-end cars use computer-coded, encrypted car keys, which local dealers usually fail to duplicate. To avoid expenses related to lost car keys, insurers offer an add-on called the key replacement cover. Under this, the insurance company will compensate for the cost of the replaced key. Most insurance companies will additionally pay for the installation of the new lock. However, the number of times you can use this add-on cover within a policy period varies depending on the insurer.

Tyre protector motor cover: Considering the road conditions in India, it is important to have this cover. Tyre protector add-on ensures to protect the car tyres for scenarios such as car tyre(s)/tube(s) bursts without being involved in an accident. Additionally, this will also cover labour cost that includes, shifting, moving and fitting the tyre.