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Garage Cash Cover Under Car Insurance

  • Author :
  • TATA AIG Team
  • Published on :
  • 06/02/2023

In India, if you own a two-wheeler or a four-wheeler, it is mandatory to get motor insurance. According to the Motor Vehicle Act, driving without a valid motor insurance policy is a punishable and fineable offence. These include paying fines or facing an imprisonment term decided by the traffic authority.

Our country has such rules to deter accidents and other road misdemeanours caused by driving/ riding. There are three types of insurance for cars and bikes – third-party insurance, standalone own damage cover, and comprehensive insurance. Insurance also comes with various covers, of which garage cash cover is one.

Read on to know more about motor insurance, garage cash cover, and the benefits of garage cash covers.

What is Motor Insurance?

Motor insurance is insurance that protects a person’s vehicle, the person themselves, and any third parties and their vehicle/ property that the person’s car can harm, damage, or injure. It is a contract between an individual with a two/ four-wheeler and an insurance provider that the insurer will provide financial compensation to the insured individual in the eventuality of loss, damage, injury, accidents, or natural or man-made disasters. As mentioned above, there are two types of motor insurance – third-party and comprehensive insurance.

In third-party insurance, any damage caused by you or your car to a third person, their vehicle, and their property gets covered. But any unforeseeable loss or damage to your own vehicle or body does not get covered. But comprehensive insurance covers you, your car, and third parties. Comprehensive motor insurance offers additional riders/ covers that provide extra financial support in varying eventualities. Garage cash cover is one such rider in motor insurance.

What is the Garage Cash Cover in Car Insurance?

A garage cash cover in car insurance is an add-on cover that provides an added layer of financial protection to your car. It is also known as a daily allowance cover, downtime protection cover, or conveyance benefit cover. In a garage cash cover, you receive a daily allowance for a designated number of days while your car is at the garage for repair. While your car is in the garage, you might have to arrange alternative transport. The daily allowance is to cover the cost of transportation from one place to another while your primary insured car is under repair due to damage, theft of parts, and other scenarios.

What are the Benefits of Getting Garage Cash Cover in Car Insurance?

It helps hire an alternative vehicle

The first thing a garage cash cover does is help you hire an alternative vehicle to go about your daily affairs without any stress. You don’t have to worry about searching for another private vehicle or borrowing one from your friends and family. You can choose the most comfortable and convenient form of travel and get reimbursed for it.

It can come in handy during emergencies

You might think that staying without a vehicle while your car is getting repaired at the garage is okay, especially if you have a work-from-home, freelance, or business type of employment. But having a vehicle ready is necessary to tackle any unforeseen emergency that might come your way. For instance, if there’s heavy rain, a thunderstorm, or a life-threatening health complication where you have to rush to a hospital, you will need a vehicle to get by as soon as possible.

It is cost-cutting and value for money

You might think, why pay an extra premium and spend on an additional garage cash cover? Because nothing is worth making your life inconvenient. Besides, did you know you can end up saving more with a separate cash cover than by paying from your own pocket? For instance, if you get a cash cover of Rs. 600 for a period of 10-15 days while your car is in repair, as opposed to spending Rs. 400-500 from your pocket every day, you will end up getting more financial benefits.

It makes commute convenient and safe

Getting a garage cash cover makes the daily commute convenient and safe. You don’t have to compromise by travelling on public transport like buses or trains to get anywhere. Oftentimes, the public commute is overcrowded and unsafe at night time, especially for women. Natural calamities can also pose a threat to your safety, and having something that covers your vehicle costs at the time is essential. So, whether you want to go to your office or take a cross-city trip, the garage cash cover can cover those expenses.

It pushes you to get comprehensive motor insurance

A garage cash cover is available only with comprehensive motor insurance. While getting third-party insurance is mandatory, you should also put your own physical and financial safety at the forefront. Purchasing add-ons mirrors your commitment to secure your life and get the protection you deserve, even if you have to pay higher premiums for it.

What are the Terms and Conditions of a Garage Cash Cover?

While the garage cash cover can come to your rescue in times of need, the insurer might place some pre-terms and conditions that you need to fulfil before you can avail of the benefit. These terms can vary from insurer to insurer. However, the general outlay, where you can claim the garage cash cover, includes:

  • The garage cash cover is only available with the comprehensive insurance policy.
  • The cash cover requires the payment of an additional premium.
  • The cash cover is not guaranteed.
  • The garage cash cover is only claimable if you repair your car at a network garage listed with the insurer.
  • The garage cash cover is only available for 10-15 days and for a restricted number of insurance claims.
  • The garage cash cover is only available if your vehicle remains in the garage shop for a designated period, like 2-4 days.

To Conclude

According to sources, India ranks third in road accidents and the number of people who passed away due to those accidents. To make plying the roads a safe experience for the driver and fellow drivers on the road, the government has made it compulsory to get at least third-party insurance for cars. An insurance policy does not prevent accidents, but it compensates for the expenses spent on hospitalisation and vehicle repair.

The law mandates only third-party insurance, but it is wise to get comprehensive insurance for cars. Further, you can choose add-ons you deem necessary for maximum financial protection. If you want discounted premiums, you can get car insurance online. On Tata AIG, you can purchase a new insurance policy or can make a car insurance renewal online without any hassle.

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Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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