Car under repair after an accident? This insurance add-on can help with travel costs

Your car is finally at the garage after an accident, but your daily routine cannot come to a halt. You still need to get to work, drop children at school, run errands or make medical appointments.

With your vehicle unavailable, you may have to depend on cabs or other modes of transport, adding to your expenses even as you deal with the cost of repairs.

For instance, a 10-km office commute in Bengaluru can cost around ₹250 one way by cab. Over a five-day work week, that could mean an additional expense of nearly ₹2,500, excluding surge pricing during peak hours or bad weather, said Aditya Kumar, Head-Motor Underwriting at Digit Insurance.

But does your car insurance cover these temporary travel expenses?

Motorists can consider a Daily Conveyance Benefit, an add-on that helps meet alternative transportation costs while their vehicle is being repaired following an accident.

What does Daily Conveyance Benefit cover?

The add-on provides financial assistance towards daily travel expenses when a vehicle is undergoing repairs following an accident. The benefit is generally available when the insurer approves the accidental damage claim.

According to Kumar, insurers may offer a fixed daily allowance or cab vouchers from designated taxi operators. The benefit can range from ₹500 to ₹1,000 per day, typically for seven to 10 days, depending on the policy.

The benefit generally starts from the date of the first damage assessment and continues until the vehicle is ready for delivery or the maximum eligible period is exhausted, whichever comes first.

Some policies may also restrict claims to twice in a policy year and require the vehicle to be repaired at an authorised garage.

Who should consider this add-on?

The cover may be useful for motorists who depend on their cars for daily commuting, particularly those who have limited access to public transport.

Single-car households may also find it relevant, as the unavailability of one vehicle can disrupt office commutes, school runs and other family responsibilities. People living in smaller towns, where cab services and public transport options may be limited, could also consider the cover.

It may also help those who need to travel regularly for medical appointments or other essential commitments, Kumar said.

What should you check before buying the cover?

The Daily Conveyance Benefit is not automatically included in every motor insurance policy. It is generally offered as an add-on, and its terms differ between insurers.

Before opting for it, policyholders should check:

• Daily allowance: The maximum amount payable and whether it is offered as cash or cab vouchers.
• Coverage period: The maximum number of days for which the benefit is available.
• Waiting period: Whether a time excess applies before the benefit becomes payable.
• Claim conditions: Whether an approved accidental damage claim is mandatory.
• Garage requirements: Whether repairs must be carried out at an authorised or network garage.
• Claim limit: How many times the benefit can be used during a policy year.

Is Daily Conveyance Benefit worth the additional premium?

The decision depends on how frequently you use your car, the availability of alternative transport and the likely cost of commuting without it.

For someone who uses a car occasionally and has easy access to public transport, the add-on may be less relevant. However, for daily commuters and single-car households, alternative travel expenses can accumulate even over a few days.

Kumar said motorists should estimate their potential transportation expenses during the repair period and compare them with the additional premium and benefit limits before opting for the cover.

The add-on does not pay for vehicle repairs. It addresses a separate expense, the cost of getting around while your car is off the road.