When wired parallel to a coil, Varistors, voltage-dependent resistors, limit the maximum over voltage, since they become conductive when a specific threshold voltage is exceeded

Fig. Basic circuit diagram: varistor

Fig. Switching over voltage of a contactor with varistor
Advantages : The increase in drop-out time is minimum and clamps the voltage to acceptable levels.
Disadvantages :Cost is very high
Overview of different protetion circuit

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