Team AckoJul 22, 2021
If you are purchasing a new car, you must purchase a car insurance policy as well. Such a policy has two variants – a basic one and an enhanced one. The basic policy is known as a Third-party Liability policy. Law states that all car owners must purchase this policy, as it covers claims raised by third parties. The enhanced policy is known as a Comprehensive cover. It includes the law-stated coverage as well as covers claims raised for damages to the insured car. And then come the Add-ons – like the Garage Cash Cover.
A car insurance policy’s primary motive is to offer financial assistance in case of unfortunate incidents like a car accident. Often, inconvenience tags along with such unfortunate events. Car insurance also has a solution for such inconvenience – Add-ons. They are extra, dedicated covers that can be availed by paying an additional premium. In return, they offer benefits. The Garage Cash Add-on is known for its convenience. Read ahead to know about its benefits, features, and how to purchase one.
A Garage Cash Cover is also known as a Downtime Allowance Add-on. This cover is helpful in case you raise a claim against your Comprehensive car insurance policy and your vehicle is taken to the garage for repairs. The insurance company offers a fixed amount as an allowance for the inconvenience caused to you during the period.
A Garage Cash Cover is an Add-on to an existing car insurance policy. This cover can only be added to a Comprehensive car insurance policy. The simplified explanation of this cover is – the insurance company will give you money to cover your conveyance cost till the time your vehicle is getting repaired in a garage. Usually, the vehicle is taken to a network garage, which means a garage that is affiliated with the insurer.
The money you are eligible to receive, the duration for which you are supposed to receive it, and other terms and conditions need to be checked in detail before purchasing this Add-on. Different companies might call this cover by different names. This is not a standardized policy like a Third-party Liability insurance cover. Therefore, the insurers have the liberty to price it based on their strategy. The inclusions and exclusions of the policy can differ from one insurer to another.
Here’s a step-by-step working mechanism of the Garage Cash Cover.
Step 1 – Purchase the Garage Cash Cover in addition to the Comprehensive car insurance plan.
Step 2 – Inform the insurer in case of an accident.
Step 3 – Considering the car needs repair work, the insurer will tow the vehicle to the network garage.
Step 4 – Considering the garage takes five working days to repair and deliver the car to you, the insurance company will pay you travel allowance/conveyance cost for those five days as per the agreed terms and conditions.
For example, till the time your vehicle is in the garage, you will probably hire a cab to commute to work and come back home. The insurance company will pay a fixed daily sum of money to you for travelling in the cab. This amount is dependent upon the terms stated by the insurer while buying the Add-on.
Step 5 – You stop receiving the daily amount when the car is repaired and delivered to you or specific clauses in the terms and conditions are met.
The internet and smartphone – two powerful technologies – have simplified the way we transact. The financial services industry has also benefited from these technologies and now you can purchase car insurance online along with Add-ons by just clicking a few buttons.
Your car can now be insured with an extensive car insurance policy and the Garage Cash Add-on within minutes without any form-filling or document submission process. However, you still have the option to buy the policy and the Garage Cash Add-on in an old-school manner from some insurers. Here’s how you can purchase the Garage Cash Cover online and offline.
Step 1 – Visit your preferred insurer’s website. For example: www.acko.com.
Step 2 – Select car insurance.
Step 3 – Share personal and car-related details.
Step 4 – Choose a Comprehensive car insurance cover.
Step 5 – Add Garage Cash Cover to your package.
Step 6 – Purchase the policy by making the payment via net banking, debit card, credit card, etc.
Step 7 – Your policy will be emailed to you on the email ID shared by you during the purchase process after the payment has been processed. Some insurers also allow you to download the policy by logging in to your account on their website.
Note that the above-mentioned process is a general policy purchase flow and the steps can vary from one insurer to another.
Also, read: Credit Score and Car Insurance
Many-a-times, car owners tend to purchase or renew their vehicle’s insurance policy from car dealers. Or they are approached by insurance company executives or agents. All these are ways to insure a car via the offline mode or the traditional mode. Usually, such a process can be restrictive because you might not have many options to choose from in this method. For example, the car dealer has a tie-up with an insurer and you must purchase the type of policy offered to you by the dealer.
There might be instances where the offline method allows you to customize your car insurance plan to your liking. In such scenarios, make sure to inform the agent/executive/car dealer about your interest in purchasing the Garage Cash Add-on. If it is available, check if it is added in your policy before and after making the payment.
Here are the major benefits of a Garage Cash Cover Add-on.
You need to pay extra premium to purchase this Add-on. However, in case of an incident where your car needs to be sent to a garage for repair work for a few days, this Add-on will offer total value for money in the form of downtime allowance for that period.
In the absence of a car, you will need some sort of transportation to reach your workplace and come back home. The Garage Cash Cover will take care of the money spent on conveyance (as per the terms and conditions) and you do not need to pay for the same from your wallet.
In the absence of a car, people might choose public transport to save money. But with the Garage Cash Cover, they can choose an ideal mode of transport – like a cab, as the insurer will pay a fixed sum as a part of the cover.
Also, read: What is No Claim Bonus (NCB) in Car Insurance?
Here’s a list of things you need to be cautious of while filing a car insurance claim.
Ensure that your policy is active while the incident for which you are raising a claim has occurred.
Inform the motor insurance company about the incident at the earliest.
Be honest and transparent while sharing the details.
Share necessary documents; for example, the First Information Report (FIR) in case it is needed.
Check if the reason for which you want to raise a claim is covered by your policy.
Do not raise a claim just because you can. Analyse the claim situation based on the Compulsory Deductible that you have to pay, the actual claim amount you shall receive, and whether it is best to pay for the repairs from your pocket and enjoy the No Claim Bonus discount at the time of policy renewal.
The following section highlights the frequently asked questions and answers concerning the Garage Cash Cover Add-on.
Do I have to pay extra to purchase the Garage Cash Cover or is it bundled with a Comprehensive car insurance policy?
In most cases, the Garage Cash Cover is an Add-on. It means you will have to pay a marginal amount to include it in your Comprehensive car insurance plan. However, some insurers might bundle the same in their Comprehensive plan, but it won’t be termed as an Add-on but described as a feature.
Are there any minimum number of days for which the car needs to be stationed in a garage for me to raise a claim against the Garage Cash Cover?
Yes, in most cases, there is a ‘minimum days’ requirement. The details will be mentioned in the Policy Wordings of the policy.
Can I purchase the Garage Cash Cover for just a year? I will decide after a year if I want to continue with it or not after the one-year period. Is it possible?
Yes, you can purchase the Add-on for a year. While renewing the policy, you can remove it from your package if you do not want to continue with that cover.
Do all insurers offer the Garage Cash Cover Add-on?
It is not mandatory for insurers to offer this Add-on. Therefore, all insurers may or may not offer the Garage Cash Cover.
Does Acko General Insurance offer a Garage Cash Cover Add-on?
Acko offers the Downtime Allowance Add-on, which can be purchased with a Comprehensive policy.
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