Owning a car comes with convenience, but when your vehicle is sent for repairs after an accident, managing daily travel can become stressful. This is where the Daily Allowance Add-on Cover - also called Downtime Allowance or Daily Garage Benefit—proves valuable. It helps you stay mobile in places where public transport is not easily accessible, ensuring your routine is not disrupted when your car is out of service.
The daily allowance add-on provides a fixed sum to cover your travel expenses while your car is in the workshop for more than two consecutive days. Depending on the insurer, you may receive up to ₹500 per day for a maximum of two weeks. This benefit is available under comprehensive car insurance plans and applies only if repairs are carried out at an authorised garage. By offsetting commuting costs during vehicle downtime, this cover adds an extra layer of convenience and financial relief.
Here’s an example:
Suppose Ms Shah owns a MUV car. She has bought the Downtime Allowance Benefit add-on cover along with her Car Insurance policy. Ms Shah drives to work every day and taking a cab to work costs her Rs. 400. One day, her car met with an accident where she suffered minor injuries, but the car was severely damaged. So, she got in touch with her insurer and sent the car for repairs at an authorised network garage.
Now, the problem is, how will she manage to travel to work without her car? She will have to spend over ₹400 every day to commute. And as the damage caused to the car was severe, it will take about a week for the car to get repaired. This is where the daily allowance add-on comes into effect. With this add-on, Ms Shah doesn't have to spend on the cab from her pocket as the insurance company will bear the cost according to the terms & conditions of the policy.
The daily allowance cover steps in to ease your travel worries when your insured vehicle is out of action. It compensates you with a fixed daily amount for a limited number of days, helping cover commuting costs. Typically, insurers provide this allowance:
Like any add-on, this cover has specific limitations. The allowance is not payable in certain situations, such as:
Since the terms may differ from one insurer to another, it is advisable to carefully read the policy wordings and compare options before opting for this add-on.
Here are the benefits of choosing this add-on with your comprehensive car insurance policy:
Ensures you can continue your daily travel without disruption when your car is under repair.
Covers commuting costs like cab fares, public transport, or car rentals, reducing out-of-pocket expenses.
Particularly useful in areas with limited or unreliable public transport.
Some insurers extend the benefit for longer durations in case of vehicle theft or total damage.
Offers assurance that your routine will not be compromised even if your vehicle is unavailable for days.
The Daily Allowance Benefit Add-on is additional coverage that you can buy only with a Comprehensive Car Insurance policy. You cannot purchase this add-on with the basic Third-party insurance plan because of the simple reason that the car is not insured in a TP plan. It is possible to buy the Daily Allowance Benefit Add-on in the following way through Coverfox:
Go to coverfox.com and go to the Car Insurance Tab.
Review different comprehensive car insurance plans offered by top insurers.
While customising your policy, tick the option for Daily Allowance Benefit / Downtime Allowance and check the cost added to your premium from the drop-down list.
Once satisfied with the coverage, proceed to payment. You’ll receive the policy document along with confirmation that your chosen add-on is included.
Review different comprehensive car insurance plans offered by top insurers.
This add-on is not available with third-party car insurance. You can opt for it only if you purchase a comprehensive or own damage policy.
Adding this benefit will increase your insurance premium. While it makes your policy slightly more expensive, it also enhances the overall protection and convenience.
Check how much daily allowance the insurer provides and for how many days. Many insurers allow only 2–3 claims in a policy year, so ensure the benefit aligns with your travel expenses.
Go through the terms carefully to know when the cover will not apply (for example, minor damages or repairs at unauthorised garages). Since exclusions differ among insurers, clarity is important before you buy.
Premiums and features for this add-on vary across insurers. Always compare quotes, benefits, and conditions on Coverfox to pick the most cost-effective option for your needs.
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