Car Insurance Add-Ons: Which Ones Are Worth Paying GST On
Guide · Published 24 July 2026 · Updated 24 July 2026
Written by Arjun Malhotra, Cars Editor
Every car insurance add-on in India carries the same flat 18% GST, whether it's genuinely valuable or one that rarely pays out.
Quick Answer
Match each add-on to a specific real risk you actually face — zero depreciation for newer cars, engine protection for flood-prone areas, roadside assistance for long-distance drivers — rather than bundling all of them by default.
Zero Depreciation: Worth It for Newer Cars
Zero depreciation cover is generally worth the extra premium for newer cars, since it removes the age-based deduction insurers otherwise apply to replacement parts — a deduction that gets steeper every year and can significantly reduce a claim payout on a car under five years old.
Engine Protection: Matters Most in Flood-Prone Areas
Engine protection cover matters most for owners in flood-prone areas or anyone who regularly drives through waterlogged roads, since standard comprehensive policies typically exclude engine damage from water ingress.
Roadside Assistance: Often Bought Reflexively
Roadside assistance is the add-on most often bought without real need — genuinely useful for those who drive long distances regularly or live somewhere with limited nearby service centres, but adds relatively little value for someone driving mostly within a well-serviced city.