CONSUMABLE COVER IN CAR INSURANCE

What is Consumable Cover Add-On in Car Insurance?

A Consumable Cover Add-On in car insurance is an optional feature that provides financial protection for consumable expenses during car repairs after an accident. Consumables are items with a limited lifespan, such as engine oil, brake oil, coolants, lubricants, nuts, bolts, screws, AC gas, and filters (oil, air, and fuel), which are not covered under standard car insurance policy.

Without this add-on, you bear the cost of consumable items out of your pocket, making it a crucial addition to save money during repairs.

 

 

 

Benefits of Consumable Cover in Car Insurance

1️. Reduces Out-of-Pocket Expenses:
Without this cover, consumable costs can range from a few hundred to thousands of rupees, depending on the repair. A small extra premium ensures these unpredictable expenses are covered.

2️. Protects Against High Repair Bills:
For luxury or newer vehicles, consumables are often expensive. This add-on absorbs those costs, easing the financial burden.

3️. Small Premium, Big Savings:
The cost of this add-on is minimal compared to the potential savings. For instance, spending ₹500 on this cover could save ₹3,000 during major repairs.

4️.  Ideal for Frequent Drivers:
If you frequently drive long distances, this cover offsets the recurring consumable expenses caused by wear and tear.

Example:
Imagine a repair bill of ₹20,000, where ₹3,000 is the cost of consumables like engine oil, coolants, and nuts. Without the add-on, you pay ₹3,000 from your pocket. With it, the insurance policy covers this amount, saving you money.

 

Coverages Under Car Insurance Consumable Cover Add-on

The Consumable Cover Add-on for car insurance encompasses specific consumable essentials used during repairs following an insured incident. It delivers financial protection for some of the typically overlooked expenses.  This add-on consists of

Engine Oil:  Replacement costs for engine oil used during repairs.

Brake Oil: Coverage for the cost of brake oil replacement.

Coolants: Coverage for the cost of coolants used during servicing.

Filters (Such as oil, air, and fuel filters): Replacement costs for these essential filters that may need replacement after repairs.

Lubricants: Coverage for the cost of lubricants used in the repair process.

 

How Does Consumable Cover in Car Insurance Works?

The consumable cover add-on in car insurance works by delivering coverage for specific consumable items used after an insured event, such as an accident or mechanical failure. 

If you want to save this expense with the purchase of consumable cover add on then there is a proper process that you need to follow. Its functioning involves following few basic and straightforward procedure as below,

Consumable Covered: When a vehicle undergoes repair work due to an insured event, consumable items are used. These include engine oil, brake oil, coolants, lubricants, and various filters like oil, air, and fuel filters.

Coverage: If the repair involves these consumables, the costs associated with them are covered by the insurance policy if the consumable cover add-on has been purchased, it means the policyholder does not have to pay out-of-pocket for these consumables separately.

Filing a Claim: When a repair is required, the policyholder can file a claim under the consumable cover. The insurance company reimburses the cost of the consumables used as specified in the policy. 

Documentation: The policyholder may need to deliver proof of the consumables used, such as receipts or invoices from the repair shop, to claim these expenses.

By including the consumable cover add-on, the insurance policy becomes more comprehensive, ensuring that both major and minor costs related to vehicle repairs are covered, thereby providing peace of mind to the policyholder.

 

Inclusions of Consumable Cover Add-on in Car Insurance

Consumable Cover Add-on naturally covers the following essentials needed during repairs upon an insured event. It means that if you complete the purchase for Consumable Cover add-on or incorporate it into your existing car policy, you need to understand what it covers.

Engine Oil:

The cost of replacing engine oil during repairs after an accident or breakdown is covered under this add-on.

Brake Oil:

This add-on covers the cost of brake oil replacement, which is necessary for the braking system during repairs.

Coolants:

Covers the cost of coolants used to manage engine temperature, which can be replaced during repairs.

Filters:

It includes oil, air, and fuel filters, which may need replacement as part of the repair process. These filters are essential for maintaining the performance and efficiency of the vehicle.   

Lubricants:

The cost of various lubricants used during repairs is also covered under this add-on, which helps reduce friction and maintain vehicle parts and performance as well.

 

Exclusions of Consumable Cover Add-on in Car Insurance

While the Consumable Cover Add-on in car insurance provides significant benefits, it does not cover all situations or consumables. Here are the typical exclusions you must keep in mind while integrating an add-on to your car insurance policy.

Driving Without License:

Consumable cover add ons will not apply if the driver does not hold a valid driving license at the time of incident.

Driving Under the Influence:

Under the influence of alcohol or drugs is excluded from the Consumable cover add-on in Car Insurance.

Usage of Car for Commercial Purpose:

A policyholder using a private car for commercial purposes cannot claim for insurance in any unpleasant situation.

Regular Wear and Tear:

The add-on does not cover consumables replaced during routine maintenance or servicing unrelated to an insured event.

Fuel:

Costs related to fuel replacement, refilling, or contamination are not included under this cover.

Uninsured Repairs:

If the repair is for damages not covered by the basic insurance policy (e.g. excluded perils like driving under influence), the cost of consumables will also not be reimbursed.

Pre-existing Damage: 

Consumables required for repairs due to wear and tear or damages existing before purchasing the policy are not covered.

Negligence:

Costs arising from negligence, such as not maintaining adequate coolant levels or allowing the vehicle to overheat, are excluded.  

Non-Accidental Repairs:

Repairs not resulting from an accident, natural calamity, or any insured event (e.g. cosmetic upgrades or general servicing) are not covered.

Unauthorized Repairs:

If repairs are conducted at an unauthorized garage, the cost of consumables will not be reimbursed.

All these coverage may vary between the insurance providers, so it is critically important to review the particular terms and conditions of the consumable cover add-on before purchasing. This add-on is valuable for covering specific scenarios, but understanding the exclusions is key to ensuring it meets your needs effectively.

 

Things to Know Before Buying Consumable Cover Add-on

It is important to gain knowledge about the factors before inserting an Add-on in a car insurance policy because it assists you to make an informed decision about whether the additional costs are justified.

If you already have a standard comprehensive insurance policy for your car, and are willing to integrate Consumable Car Add-on to it, then it will surely help with saving your expenses. But, before that, it is necessary to understand below factors,

Check Consumable Add-On Coverage

You are expected to understand the inclusions and exclusions from the add-on cover. Just keep in mind that routine maintenance or servicing consumables do not get covered under this add-on.

Verify Eligibility

The add-on is generally available for cars within a specific age limit, often up to 5 years. You need to check if your car qualifies for this coverage or not. Besides this, the add-on is available only for the cars with comprehensive insurance policies and not for the third party liability plans.

Assess Your Driving Habits

You can take the benefit of this add on if you go for frequent long drives. Furthermore, rough terrains or heavy usage increase wear and tear on this add on.

Claim Process

Understanding the documentation required to claim the consumables, such as receipts or invoices from authorized repair centers. You also have to look for a separate process for integrating this add-on if any.

Authorized Repairs

Ensure that repairs are conducted at an authorized garage, as unauthorized repairs may invalidate your claim for consumables.

Budget Allocation

Budget is the primary thing that one needs to focus on. You have to make it confirm that adding a consumable cover doesn't compromise your ability to afford other critical car insurance add-ons or your overall policy premium.  

Compare Providers

Different insurance companies can offer varying terms, conditions, and costs for this add-on. Shop around to find the best fit for your needs.

By acknowledging these factors, you can make an informed decision about whether the consumable cover add-on is appropriate for your requirements and budget.

 

FAQs on Consumable Cover in Car Insurance

Is Consumable Cover Add-on mandatory for car insurance?

No, the consumable Cover Add-on is not mandated for car insurance. It is an optional add-on that you may purchase in conjunction with your comprehensive car insurance policy to increase your coverage.

What types of vehicles are eligible for a Consumable Cover Add-on?

The eligibility for the consumable Cover Add-on in car insurance is determined by the insurance provider’s unique criteria. However, private cars, luxury cars, and commercial vehicles can qualify with certain criteria.

Does the Consumable Cover Add-on apply to third-party car insurance?

No, the Consumable Cover Add-on is not pertaining to third-party car insurance and can only be bought with comprehensive car insurance.

How is the premium for Consumable Cover Add-on calculated?

Consumable Cover Add-on is calculated based on age of vehicle, its model and type of vehicle. Insurers use specific criteria to determine the cost of this optional add-on.

Can I claim consumable expenses without the Consumable Cover Add-on?

No, basically you cannot claim for consumables like engine oil, brake oil, coolants, and filters. These are considered routine maintenance items and are not included in standard comprehensive insurance policies.

Does Consumable Cover Add-on affect my No Claim Bonus (NCB)?

No, NCB will not be affected with consumable add-on as these are two different things. Consumable add-on covers the cost of consumables that are not covered under basic insurance and NCB in car insurance is a discount you earn on your premium for not making any claims during the policy term.

Can Consumable Cover Add-on be purchased for older cars?

Yes, it is generally designed for newer vehicles and for those within a specific age range, typically up to 3 to 5 years old.