All About Downtime Allowance Car Insurance Add-on
Published On Feb 15, 2021 11:00 AM By InsuranceDekho
An allowance for downtime will mean cash for the duration a particular thing is not in use. This may be mainly due to a technical or mechanical problem. When the vehicle is being fixed, the downtime allowance add-on in car insurance gives a certain amount of cash.
One of the key benefits of purchasing a comprehensive car insurance package is that, with the aid of add-ons, one can enhance the coverage. Some add-ons allow you to get better reimbursement on claims, while others offer useful services. If you encounter a delay in services, certain add-ons even offer direct cash. The downtime allowance add-on for car insurance is one of these helpful add-ons.
An example of downtime allowance is an additional benefit that allows a vehicle owner to earn a daily allowance from the motor insurance provider to cover the daily transportation expenses if the covered car is in a repair garage. Under this protection, until your vehicle is fixed and out of the garage, the insurer is liable to pay for your daily travel costs. Hence, the insured person would not have to pay money on traveling to work until the vehicle is fixed. Here, as per the terms and conditions of the contract, car insurance providers will bear this fee.
Advantages of Buying Downtime Allowance with Car Insurance
It is often helpful to buy an appropriate, additional insurance plan for a car insurance policy. You may take advantage of many benefits that follow the buying of an add-on. When you buy it with a comprehensive auto insurance package, the downtime allowance will offer you the following advantages.
- Convenient Commutes: Because of a vehicle breakdown, the policyholder would not have to sit home or pay traveling costs from their pocket. By going for a comfortable transportation mode, he/she can continue to travel. Many who are working people, only because they cannot use their vehicle, should not have to take leave from the workplace or settle for an uncomfortable mode of transportation. Without remaining home for a long period of time, the policyholder can visit the places they wish.
- Daily Travel Allowance: This is one of the downtime allowance key features. When your car is being repaired, the insurance provider will cover the cost of traveling. This money can be used for break-free travel.
- No Compromise: Due to a car breakdown, one does not have to choose unwanted travel options. The policyholder may call the insurance provider to determine the mode of travel they decide to choose in compliance with the policy terms.
There are cases where a claim against your car insurance policy will not be raised. Here are the downtime allowance add-on exclusions:
- When a claim is denied, the downtime allowance will not be paid to the insured.
- If damage has happened to only the windshield or glass sections of the vehicle, the insurer will not accept a claim made against downtime allowance.
- If the number of days needed to repair the vehicle is fewer than the number of minimum days stated in the policy terms, the insured cannot file a claim against the downtime allowance.
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Downtime allowance is an additional benefit that allows a vehicle owner to earn a daily allowance from the car insurance provider to cover the daily transportation expenses if the insured car is being repaired in the network garage. Under this protection, until your vehicle is fixed and out of the garage, the insurer is liable to pay for your daily travel costs.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.