Difference between Courtesy Car and Hire Car in Car Insurance?

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Difference between Courtesy Car and Hire Car in Car Insurance?

Car insurance plays a pivotal role when accidents occur, protecting the insured and providing them with financial assistance. If an accident damages your vehicle, it may need urgent repairs and replacement. You will have to leave it in the garage for repairs, which can make daily commuting inconvenient.

Here comes the role of a courtesy car and hire car in car insurance. When you buy an insurance policy, having a hire car or courtesy car insurance can relieve you from the inconvenience of travelling while your car is in the garage. Let us understand the courtesy/hire car meaning, when it is available, its features, and so on.

Hire Car Vs Courtesy Car Meaning in Insurance?

Under hire car insurance cover, the insured will get a replacement vehicle for travelling purposes. The vehicle will be similar to (not exactly) the size of his vehicle if the insured vehicle is damaged in an accident. The hire car is provided for a specific time so you can travel conveniently while your insured vehicle gets repaired.

In the case of courtesy car insurance cover, you get a standard vehicle which may not be similar to the insured vehicle. A courtesy car is also available for a specific period. It may not be available if your car has been stolen or written off.

Thus, hire/courtesy cars are similar to loaner vehicles, which are arranged and paid for by the insurance provider for the insured.

Features of Hire/Courtesy Car Insurance Cover

Here are some of the essential features that one must know.

  • If the insured vehicle is damaged by the dangers mentioned in the own damage section of the policy, a hire/courtesy car will be provided.

  • A hire/courtesy car will not be an exact replacement for the insured vehicle.

  • You typically get the hire/courtesy car within 24 hours of the vehicle reaching the garage or claim acceptance by the insurance provider (whichever is earlier).

  • The insurance provider pays for a hire/courtesy car for 10 days for a repair claim and 15 days for a theft/total loss claim.

  • The hire/courtesy vehicle can be used by the insured for 8 hours a day or 80 km/day, whichever is lower.

  • In case a hire vehicle is not available, the insurance provider will pay the policyholder's travel costs.

Ineligibility to Receive a Hire/Courtesy Car Insurance Benefit

Following are the circumstances when an insured may not be eligible to receive a hire/courtesy car.

  • If the damage claim is only for the windscreen or other glass parts.

  • If the vehicle is not repaired at the authorised garage specified by the insurance provider.

  • If the claim is not valid under the own damage section of the standalone own damage policy.

  • When the time is required to repair damages not covered in the policy.

The Need for Car Insurance Policy

Every vehicle owner must buy car insurance online to safeguard themselves from various hassles in case of accidents. Comprehensive car insurance from a renowned provider like Tata AIG offers several benefits, such as hire/courtesy car cover, customisable add-ons, affordable premiums, online purchases and renewals, etc.

Hire/courtesy car cover offers a huge relief to the insured when their vehicle is under repair and they require a vehicle on a daily basis for travel. To learn more about the courtesy car and hire car, you can reach out to us!

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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In the event of a car insurance claim, both the compulsory and voluntary deductibles (if chosen) must be paid. However, it is advisable to refrain from filing claims for minor damages. Doing so helps preserve any accrued No Claim Bonus discount, ultimately saving you money in the long run.