Which Motor Insurance Riders Are Worth Your Money? A Complete Guide to Choosing the Right Add-ons

Motor insurance is a risk management tool that protects you against high and unexpected repair costs of your vehicle. If your basic comprehensive or own-damage insurance policy does not offer sufficient coverage, you can customise it by opting for riders.

Let’s understand in detail what motor insurance riders are, which must-have add-ons to choose, how much they cost, and what factors to consider before buying them.

What Are Motor Insurance Riders?

Motor insurance riders, also known as add-ons, are optional coverage you can purchase with a standalone own-damage or comprehensive policy. These riders help you customise your coverage to fit your unique needs. You must pay an extra fee for each rider, which is added to your final premium.

8 Most Popular Motor Insurance Riders Explained

The following are the 8 most popular and commonly used motor insurance riders in India.

1. Zero Depreciation Cover

The Zero Depreciation add-on, also called ‘Bumper-to-Bumper’ cover, offers full claim settlement without deducting depreciation of the replaced parts. You get 100% compensation for repair costs arising from accidents, collisions, or natural disasters.

A zero depreciation add-on is a must-have, especially if you own a vehicle with expensive, hard-to-repair parts. Cars under 5 years old are eligible for the zero depreciation add-on, which increases your premium by 15-20%.

What’s covered under Zero Depreciation

• Full claim on plastic, rubber, or metal parts
• No out-of-pocket for depreciation

**What’s not covered under Zero Depreciation **

• Tyres and engine damage need separate covers
• Typically limited to 1-2 claims per year

2. Engine Protection Cover

Roadside assistance provides 24/7 support for unexpected vehicle breakdowns caused by dead batteries, flat tyres, low fuel, engine failure, or accidents, etc. With a roadside assistance rider, you get on-site repair or get your vehicle towed to the nearest garage for repairs. You don’t have to pay out of pocket for these services.

A roadside assistance add-on is essential for individuals with vehicles older than 5 years who frequently travel long distances. This add-on typically costs ₹500- ₹1,500 per year, depending on your insurer and vehicle type.

What's Covered under Engine Protection Rider

• Engine damage caused by water ingress
• Hydrostatic lock
• Gearbox damage arising from covered incidents

What's Not Covered under Engine Protection Rider

• Mechanical or electrical breakdown due to normal use
• Damage caused by wear and tear

3. Roadside Assistance Cover

Under the engine protection add-on, your vehicle is covered against engine and other related damages resulting from waterlogging and oil leakage. This add-on is particularly suitable for vehicles in cities prone to waterlogging, such as Mumbai and Chennai, and is generally available for vehicles that are up to 5 years old.

An engine protection add-on would increase your premium payments by around 12-15%, based on your vehicle’s age.

What's Covered Under Roadside Assistance

• 24x7 towing assistance
• Flat tyre replacement
• Battery jump-start
• Emergency fuel delivery
• Lockout assistance

What's Not Covered Under Roadside Assistance

• Repairs arising from accident-related insurance claims
• Major workshop repairs

4. Return to Invoice Cover

If your vehicle is stolen or damaged beyond repair, standard motor insurance would only pay the Insured Declared Value (IDV), which may decrease over the years as per the depreciation schedule set by the IRDAI (Insurance Regulatory and Development Authority of India).

Return to Invoice (RTI) cover reimburses the original invoice value of the vehicle along with the registration charges and the road tax paid. This cover would increase your total premium by 10-15% and is suitable for new and high-value vehicles.

What's Covered Under Return to Invoice

• Original invoice value in case of total loss or theft
• Registration charges
• Road tax

What's Covered Under Return to Invoice

• Partial damage claims
• Minor repairs or dents
• Older vehicles, which are usually available only for cars up to 3- 5 years old

5. No Claim Bonus (NCB) Protection Cover

A No Claim Bonus cover offers a reward to policyholders if they do not raise any claim in a policy year. The insurance provider would provide a discount on the motor insurance premium at policy renewal. NCB Protection Cover allows you to retain your accumulated no-claim bonus even after making one or two minor claims. You can also transfer your NCB when switching your insurance provider.

No Claim Bonus (NCB) Protection Cover may increase your final premium by ₹400–₹800 per year.

What's Covered Under NCB

• Protection of accumulated NCB after eligible claims
• Continued premium discounts at renewal

What's Not Covered Under NCB

• Unlimited claims, as most insurers allow only one or two

6. Consumables Cover (Consumables Expense Cover)

A consumable rider covers the cost of items used to repair your vehicle, such as nuts, bolts, engine oil, lubricants, and coolant. These items are often not covered under a standard motor insurance policy; therefore, you should opt for the consumables add-on, especially if you own a new or luxury car with high repair costs.

A vehicle less than 5 years old can opt for a consumable add-on, which typically costs around 0.5- 1% of the car's Insured Declared Value (IDV) or ₹300- ₹1,000 per year.

What's Covered under Consumables Rider

• Engine oil
• Coolant
• Brake fluid
• Grease
• Nuts and bolts
• Washers
• AC gas and other eligible consumables

What's Not Covered under Consumables Rider

• Major spare parts
• Standalone repairs without an admissible Own Damage claim

7. Tyre Protection Cover (Tyre Secure)

Tyre protection cover compensates for accidental damage to tyres and tubes due to pothole impacts, sidewall bulges, or tyre blowouts. This cover would increase your premium by ₹250- ₹500 per year and is suitable for SUVs, luxury vehicles, and cars fitted with expensive alloy wheels or low-profile tyres.

What's Covered Under Tyre Protection

• Accidental tyre damage
• Sidewall cuts
• Bulges
• Blowouts

What's Not Covered Under Tyre Protection

• Normal wear and tear
• Routine punctures
• Manufacturing defects

8. Key and Lock Replacement Cover

If the policyholder loses their vehicle key or it is stolen, the key and lock replacement cover compensates for the cost of replacing lost, stolen, or damaged keys, along with locksmith charges and lock replacement costs. This add-on typically costs between ₹150 and ₹400 per year and is particularly suitable for premium and luxury vehicles with smart key systems.

What's Covered Under Key and Lock Replacement Cover

• Replacement of lost or stolen keys
• Smart key programming
• Locksmith charges
• Lock cylinder replacement

What's Not Covered Under Key and Lock Replacement Cover

• Claims beyond the insurer's annual limit, which is typically one or two
• Cosmetic damage to keys

Which Riders Should You Buy Based on Your Vehicle?

Recommended Motor Insurance Riders by Vehicle Age.

What Each Add-On Actually Saves You on a Motor Insurance Claim

Here’s how much each add-on would save you on a motor insurance claim.

How Much Do Motor Insurance Riders Cost?

Here’s a detailed breakdown of how much each motor insurance rider would cost.

Factors to Consider Before Buying Motor Insurance Riders

You must consider the following factors before buying motor insurance riders or add-ons.

Vehicle Age

The age of your vehicle is one of the most important factors you must consider when choosing the right motor insurance riders. If your vehicle is fairly new, riders such as zero depreciation cover and return-to-invoice cover are ideal, as they protect against depreciation and total loss. Older vehicles usually have lower market value and hence may not justify expensive add-ons.

Location and Weather Conditions

The city you live in and its weather conditions can help you decide which motor insurance riders are more suitable for your vehicle. If you live in flood-prone cities or areas that often experience heavy rainfall, an engine protection cover would be ideal for your vehicle.

Driving Habits and Usage

Evaluate your vehicle driving habits and usage to select the right rider. If you drive long distances, commute daily, or frequently travel to remote areas, a roadside assistance cover can be extremely useful if your vehicle breaks down and you’re stranded on the road.

Impact on Premium

Every motor insurance rider increases your policy premium; hence, instead of buying every available add-on, invest only in those that provide essential protection that aligns with your vehicle and driving needs. This helps to strike the right balance between coverage and affordability.

Likelihood of Making a Claim

Consider the risks you are most likely to face while driving to decide whether you even need a rider. If you don’t require roadside assistance, engine protection, or tyre protection, and are unlikely to claim them, then it is best to skip buying those optional covers.

FAQs

Are motor insurance riders worth buying?

Yes, depending on your vehicle and its use, motor insurance riders such as Zero Depreciation Cover, Engine Protection Cover, Roadside Assistance, and Return to Invoice Cover can enhance the protection offered by a comprehensive motor insurance policy.

Is Zero Depreciation Cover worth the extra premium?

Yes, it is worth paying the additional premium if you want comprehensive coverage for repair costs without depreciation deductions. If your vehicle is not more than five years old, a Zero Depreciation Cover is always worth the additional premium amount. With the help of this rider, depreciation will not be deducted on replacement parts.

Who should opt for an Engine Protection add-on?

Engine Protection add-on rider is good for those who have their vehicles in flood-prone cities such as Mumbai, Chennai, Bengaluru, or Hyderabad. This rider covers the engine from the high expense of engine repair in case of water ingress.

Can I buy motor insurance riders with a third-party insurance policy?

No. Motor insurance riders are provided only on Comprehensive Car Insurance or Standalone Own Damage plans. You cannot opt for any add-ons under a third-party insurance policy.

How do I choose the right motor insurance add-ons?

You must choose add-ons based on your car's age, location, usage, and budget. For example, zero depreciation and return to invoice covers are ideal for new cars, while roadside assistance and engine protection are better for older vehicles or those in flood-prone cities.

Do motor insurance riders significantly increase the premium?

Motor insurance riders increase your premium slightly, but their cost is often small compared to the potential claim savings.