Accessories Cover In Car Insurance

Suppose you buy a brand-new car. You bring it home, along with a car insurance policy. The car is your prized possession and you want to customize it with different accessories that suit your taste and comfort. You are a person who loves to listen good music while going on long drives. So you get a high-end stereo-system fitted to your car. However, you live in an area that’s prone to theft and now, more than enjoying the music, you are always worried about what will happen in case the stereo gets stolen in your absence. If stolen or damaged, the cost of getting it replaced or repaired is going to put you through financial and emotional distress, and your basic car insurance policy will not cover any of that. Now, this is where an Accessories Cover comes to the rescue!
 

What is an Accessories Cover?

It is an add-on cover that provides financial coverage for the accessories added to your car, like mini LCD TVs, fog-lights, air-conditioners, etc. in case of mishap or accident. An Accessories Cover can be added to your motor insurance policy by informing and paying some extra premium to the insurance company. Otherwise, your conventional motor insurance will cover only the damages caused to the car, and not the accessories fitted inside it.
 

Who Should Opt for The Accessories Cover?

• If you stay in accident-prone or theft-prone areas, your valuable car accessories are more vulnerable to damage or theft. In such cases, an Accessories Cover will help you. Any damages to the accessories because of any mishap or theft will be covered.
• If you have added high-end luxurious car accessories, you should consider purchasing this cover, since repairing/replacing such accessories post any sort of damage will be very expensive.
   

Types of Accessories Covered

Accessories can broadly be classified into two types - electrical and non-electrical. It is important to verify and understand the exact benefits and coverage before buying the plan.

• Electrical Accessories
  • Some common electrical accessories that are covered are -
  • Externally fitted music system.
  • Fog Lights
  • Brake Lights
  • Mini LCD TV
  • Air conditioner, etc.
     
• Non-Electrical Accessories
  • These include -
  • Seat Covers
  • Alloy wheels
  • CNG kit
  • Other interior fittings, etc
     

Importance of Having an Accessories Cover

Both the electrical as well as the non-electrical accessories are expensive, and any damages or theft caused to them will put you through a lot of financial distress. Premium accessories are difficult to get repaired and the replacement costs are too high.

By taking an Accessories Cover, you can insure any accessories that are fitted to your vehicle, and in case of an accident or theft, you can get a reimbursement from the insurer for your loss. If the addition of such car accessories is not informed to the insurance company, then at the time of an accident or theft, any damages caused to those devices will not be covered. So always provide the exact details and amount of the accessories, and stay protected.
 

How Does The Insurance Company Decide The Cover Amount for The Accessories?

• The insurance company determines the cover amount as per the invoice of that particular accessory and the applicable rate of depreciation.
• At the time of claim, the amount paid for any damages or theft caused to the accessories will be the invoice amount minus the depreciation of the accessories, as per their age and the depreciation rate mentioned in the policy wordings.

Let’s take an example to understand this better.

Suppose, your premium stereo-system cost is Rs. 10,500. This is the invoice amount. And let’s assume that the rate of depreciation on electrical accessories mentioned in the policy is 15%. Please note that the rate of depreciation may vary from insurer to insurer.

Therefore,

Claim Amount = Invoice Amount - Rate of Depreciation

= Rs. 10,500 - (15% of 10,500)

= Rs. (10,500 - 1,575)

= Rs. 8,925

Hence, Rs. 8,925 is the calculated claim amount you will be receiving in case your insured stereo gets damaged or stolen.

You add various accessories to your car because they not only add more aesthetic value, but also help in maintaining the car and the overall comfort of the passengers. So if you are a person who plans on enhancing your car, it would be a smart move to protect those valuable items by adding an Accessories Cover to your car insurance policy . It provides a shield against any loss or damage to the expensive car devices and lends you peace of mind.