Car Insurance Riders: What They Mean and How to Understand Them


When protecting your car, having a basic insurance policy is essential. However, consider adding riders to your policy if you want to customise your coverage further. Insurance riders are like custom toppings for your car insurance – just as you can add extra toppings to your ice cream to suit your taste, you can add riders to your insurance policy to better meet your coverage needs. With various riders available, each offering different benefits and protection, it’s essential to understand what they are and how they work, so you can make informed decisions and get the coverage right for you. Also, check out Tata AIG, one of the most trusted names regarding four-wheeler insurance.

[Also see: Bumper-to-Bumper car insurance]

What are the Benefits of Adding Riders to My Car Insurance Policy?

Adding riders to your car insurance policy can provide you with additional protection and benefits. Here are some of the benefits of adding riders to your car insurance policy:

  • Enhanced coverage: A rider is an additional provision added to your policy, which enhances your coverage beyond the basic policy. It can provide additional protection for your vehicle, personal belongings, and yourself.
  • Cost savings: Adding a rider to your car insurance policy can save you money in the long run. For example, if you add a roadside assistance rider, you may be able to avoid paying for expensive towing services in case of a breakdown.
  • Peace of mind: With additional coverage provided by riders, you can have peace of mind knowing that you are protected in case of an accident or any other unfortunate event.
  • Customizable coverage: Adding riders to your policy can help you customise your coverage to your specific needs. You can choose the riders that are relevant to your situation and add them to your policy accordingly.
  • Convenient: Adding riders to your policy is a simple and straightforward process. You can easily add or remove riders to your policy as your needs change.

Note- Adding riders to your insurance policy offers more coverage in specific areas, but it also means paying an additional fee. 

Here is the List of Car Insurance Riders Available in Detail

  • Engine Coverage

The engine is the vital component of a vehicle, without which it cannot operate. Unfortunately, standard online car insurance policies do not provide coverage for engine damage, leaving you responsible for repair costs. However, you can add an engine protection rider to your policy to protect your engine. This is crucial, particularly if you have a new and expensive car.

  • Zero Depreciation Rider

Suppose you are making a claim for repairing your car after a collision, and the invoice value for the repair is ₹50,000. Without the zero depreciation cover, the insurance company would only pay a portion of the amount after considering the depreciation value, which could be around ₹30,000. However, if you have zero depreciation cover, the insurance company would pay ₹50,000 as per the invoice value without considering the depreciation.

  • Return to Invoice coverage

With the return to invoice cover, you can receive the total amount from the original invoice of your car in case of theft or destruction. This will allow you to purchase a brand-new vehicle, providing a significant benefit. Unfortunately, the value of your car decreases over time, leading to the insurance company attaching a lower value to it. But with the return to invoice cover, you can receive the total amount from the original invoice to replace your car.

  • Consumable coverage

Consumables refer to replaceable vehicle parts that need frequent maintenance, such as nuts, bolts, lubricants, oil filters, grease, etc. These parts are not included in four-wheeler insurance, but it is recommended to get a “consumable rider” to cover the costs of their replacements and repairs.

  • Roadside assistance coverage

Roadside assistance coverage provides support when your vehicle experiences unexpected breakdowns on the road. Whether it’s due to a malfunctioning engine or simply running out of gas, your insurance company will be available to help. By obtaining a “roadside assistance rider”, all you have to do is make a phone call to your insurer, and they will dispatch a mechanic to your location promptly. If the problem cannot be resolved on the spot, your car will be towed to the nearest garage for repairs.

  • NCB (No Claim Bonus) protection coverage

NCB (No Claim Bonus) protection coverage allows you to maintain your accumulated discounts on car insurance premiums, even if you make a claim. For example, if you have built up a significant amount of NCB, you can protect it by opting for this coverage. This way, you can continue to enjoy savings on your insurance premiums without any reduction in your NCB, even if you need to file a claim.

  • Personal belongings coverage

Personal belongings coverage compensates you for any valuable items you might have in your car that gets damaged or destroyed during an accident. For instance, if you carry expensive items like a high-end mobile phone, laptop, watch, or bag, and they get damaged in a car crash, you can file a claim with the company with whom you have your insurance if you have this coverage.

  • Repair of Minor Parts

If your car has minor damage to its glass, rubber, plastic, or fibre parts, you don’t necessarily have to replace the whole part. Instead, you can use an add-on service to bring your car to an authorised service station or garage to repair the damaged part. This option is beneficial because it is less expensive than replacing the whole part, and it won’t affect your No Claims Bonus (NCB), which adds up as a discount on your car insurance premium that you earn for not making any claims.

  • Daily Allowance coverage

This coverage is designed to help policyholders with their daily commute if their car needs to stay longer in the repair shop than initially expected. The policyholder will receive a daily allowance to cover their transportation expenses during this period. 

  • Emergency transport and hotel accommodation coverage

In the event of a minor car accident during your travels, this add-on provides essential coverage for emergency transportation and hotel expenses. Rest easy knowing you won’t be stranded, as it covers the cost of your overnight accommodation or transportation back to your destination.

  • Lost or replacement of key coverage

Misplacing or having your car keys stolen can be a significant inconvenience, but this additional coverage has covered you. It pays for replacing your lost or stolen keys and the labour costs associated with replacing your car’s locks.

  • Tube and Tyres replacement coverage

The Tube and Tyres Replacement rider is an optional add-on that can be included in your insurance policy. This rider provides coverage for the cost of replacing damaged or punctured tubes and tyres. It is particularly useful for those who frequently ride on rough terrain or in areas with debris on the roads. With this rider, you can avoid the high cost of replacing tyres and tubes. 

  • Passenger Insurance 

Although the standard comprehensive car insurance policy includes personal accident coverage, you can add an extra passenger protection rider for all passengers in your vehicle. Consider this rider if you frequently drive with your family on hazardous roads or highways to ensure their safety.


Insurance riders offer you the ability to customise your car insurance policy to meet your coverage needs better. Several types of riders are available, including passenger insurance, engine coverage, zero depreciation, return to invoice, consumable coverage, roadside assistance, NCB protection, and personal belongings coverage. These riders offer different benefits and security, but it’s essential to understand how it works and to consider the added premium cost when considering adding a rider to your policy. Make informed decisions and carefully choose the suitable riders for your needs to improve your insurance coverage and protect your vehicle.


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