Garage Cash Cover

Garage Cash Cover is an add-on that provides a fixed daily allowance to policyholders for their everyday commute till the time their vehicle is at a garage. The idea is to ensure that you are covered for the cost you may incur on any alternate mode of transport. So, with the help of this add-on, the insurance company will pay for your everyday travel in the absence of your car. It is provided for a fixed number of days, and the amount per day is also fixed (varies from insurer to insurer).

However, the insurer will not be liable to pay you for the ‘Time Excess’ opted by you, which means that if your vehicle got damaged on 1st February and you gave the vehicle for repair on 3rd February, but the First Loss Assessment was on 5th February, then the daily allowance will begin from 5th onwards up till the maximum number of days opted by you or until your vehicle is ready to use. (whichever is lower).

Some of the major benefits of buying a Garage Cash Cover are:

1. It takes care of your travel expenses: The best part of this add-on is that you do not have to spend anything out of pocket for your commute. It has a great value for money. If you buy the add-on, your premium will increase by just a minimal amount as compared to the amount you will pay as travel expenses. 
2. Ease of Commute: If you don’t have the garage cash cover, you might choose to travel by bus or metro (local transport) to save money. However, with the add-on, you will get around Rs. 400-500 for your daily commute every day, and you can comfortably opt to commute to your place of work in a cab. You can even use this amount for any short trips to the general store or to a friend’s place, as long as you are using the fixed amount specified by your insurer. 

Usually, insurance companies will provide a fixed amount per day for a certain number of days. However, they can also compensate you in either of the following ways:

1. A Standby Car for Your Transport: You might be provided with a substitute vehicle of the same make/model or of a lower model for your daily transport till your vehicle is repaired. 
2. Coupons From Well-Known Taxi Operators: Another benefit is getting vouchers from Ola and Uber for an amount equal to the fixed allowance.

The insurance company can refuse to compensate you under the following circumstances:

1. When the basic car insurance is not valid.
2. When the vehicle is not repaired for a minimum number of days required to avail the garage cash cover.
3. If the vehicle is not being repaired at an authorised garage shop.
4. No operating cost will be paid for the vehicle provided as a standby.
5. If there are any pre-existing damages in the vehicle and the garage is repairing them, the insurance company will not provide a daily allowance for this duration.
6. Claims filed for only windscreen or glass damage under the car insurance policy are not covered.  
7. Loss/damage arising from natural calamities, riots, and strikes will not be entertained.  
8. The insurer will not be liable for any delays due to the non-availability of spare parts for the repair.
9. If there is a delay in reporting the damage to the insurance company or in picking up the bike from the garage after repair.

Certain important points should be kept in mind while buying the add-on, some of these are:

1. Eligibility: This add-on is available only under the ‘Own Damage’ component of your insurance policy. 
2. Daily Allowance Benefit: The daily allowance benefit will be paid to you only if the car is being sent to a garage that is one of the network garages of the insurer. Most of the insurers have this condition. 
3. Number of Claim Limitations: You cannot make an unlimited number of claims under this cover. With this add-on, you can only make two to three claims in a policy tenure (depending on the insurance company policy). 
4. Minimum Garage Stay: Your car will have to stay in the garage for a fixed minimum number of days for you to avail of this add-on. The number of days varies from insurer to insurer. 
5. Coverage Duration: The insurer will provide the coverage for a fixed maximum number of days or the number of days the vehicle is in the garage (whichever is earlier).
6. Age Limitation: The add-on is not for vehicles that are over 5 years old.
7. Payment Limitation: The insurer will cease to pay the money the day the vehicle is fully repaired. Any delays in taking the vehicle from the garage will not be accounted for.

This add-on is extremely useful for two types of people. Firstly, people who have only one vehicle should definitely opt for this add-on. It will immensely help in travel in case your vehicle has gone for repair. Secondly, those people who do not prefer to travel by public transport should consider buying this cover.

In conclusion, to prevent yourself from unwanted expenses, this add-on is a wise choice and will definitely provide you with ease of travel while your vehicle is being repaired at a garage. It gives you the value for your money.