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Read Everything About Garage Cash Cover

By Vikas Chandra Das
21 July 2022, 11:46 AM

The primary aim of a car insurance policy is to provide financial aid in tragic accidents. Sometimes, there is added inconvenience that tags along with such unpleasant incidents. Car insurance also has a solution to the annoyance – add-ons. 

These are extra, dedicated covers that can be used by paying an additional premium. In return, they provide incentives. The Garage Cash Add-on is well known for its convenience.

Read on to learn about its advantages, features, and how to buy one.

What is a Garage Cash Cover?

The Garage Cash Cover is often referred to as the Downtime Allowance Add-on. This protection is useful if you make a claim and your vehicle is taken to the garage for repairs. The insurance provider shall provide a fixed sum as an allowance for the inconvenience caused to you during the time.

The Garage Cash Cover is an alternative to the current car insurance policy. This coverage can only be applied to the Comprehensive car insurance policy. The vehicle is repaired at a network garage, which means a garage connected to the insurer.

The money you are entitled to receive, the time required to receive it, and other terms and conditions must be reviewed in detail before buying this add-on. It is not a structured scheme like a third-party liability insurance cover. Hence, the name and terms of the cover may vary from one insurer to another.

How does the Garage Cash Cover Work?

Here's a step-by-step mechanism for the Garage Cash Cover.

  • Step 1 – In addition to the Comprehensive Auto Insurance Package, buy the Garage Cash Cover.
  • Step 2 – Contact the insurer in the event of an accident.
  • Step 3 – Considering that the car needs repair work, the insurer will take the vehicle to the network garage.
  • Step 4 – Assuming that the garage takes 5 working days to fix and return the vehicle to you, the insurance provider will pay you travel allowance/conveyance expenses for those 5 days by the negotiated terms and conditions. For example, once your car is in the driveway, you're probably going to hire a cab to get to work and get back home. The insurance provider will pay you a fixed daily amount of money to ride in the taxi. This amount depends on the terms specified by the insurer when the add-on is purchased.
  • Step 5 – You will stop getting a regular sum when the car is fixed and returned to you or when specific terms and conditions are met.

What is the Buying Process?

1. Online process

  • Step 1 – Visit the website of your chosen insurer.
  • Step 2 – Pick a car insurance policy.
  • Step 3 – Submit personal and vehicle-related information.
  • Step 4 – Choose a Comprehensive auto insurance policy.
  • Step 5 -Add the Garage Cash Cover to your kit.
  • Step 6 – Buy the policy by making payment through net banking, debit card, credit card, etc.
  • Step 7 – The policy will be emailed to you using an email ID shared by you during the purchasing process after the payment has been processed. Some insurers will also allow you to download the policy by logging in to your account on their website.

Notice that the conditions can differ from one insurer to another.

2. Offline purchase process

Many times, car owners choose to buy or upgrade their auto insurance policy from car dealers. Or they are approached by executives or agents of insurance firms. These are all ways to insure a car by offline mode or conventional mode. 

Usually, such a procedure can be restrictive because you may not have many choices to choose from in this form. For example, the car dealer has a bond with the insurer, and you must buy the form of the policy provided to you by the dealer.

There may be times when the offline option helps you tailor your car insurance plan to your taste. In such cases, please notify the agent/executive/car dealer of your interest in buying the Garage Cash Add-on. If this is available, check if it is included in your policy before and after making the payment.

Benefits of Garage Cash Add-ons:

1. Value for money

You need to pay an extra premium to purchase this Add-on. However, in case of an accident where your car has to be sent to a garage for repair for a few days, this Add-on will offer downtime allowance for that period.

2. Conveyance

In the absence of a vehicle, you're going to need some form of transport to get to your office and get back home. The Garage Cash Cover will cover the money spent on the conveyance as per the terms and conditions.

3. Better travel alternative than usual

In the absence of a vehicle, people would prefer public transport to save money. But with the Garage Cash Insurance, they can select the ideal mode of transportation – like a taxi, since the insurer pays a fixed amount as part of the cover.

Things to Note While Filing a Claim

Below is a list of things you need to be vigilant about when filing an auto insurance claim.

  • Ensure that the policy is active while you are making a claim.
  • Inform the Motor Insurance Provider of the incident at the earliest possible date.
  • Be frank and straightforward when sharing your data.
  • Share the required documents, for example, the First Information Report (FIR), if necessary.
  • Check if your policy offers the coverage you want.
  • Don't make a claim just because you can. Analyze the claim situation based on the Compulsory Deductible that you have to pay, the real cost of the claim you receive, and whether it is best to pay for the repairs from your pocket and reap the No Claim Bonus discount at the time of the policy renewal.


A garage cash cover can be quite beneficial. In the event of an accident, it goes without saying that you must get your car repaired, and having a garage cash cover can help you bear the financial brunt.


1. Do I have to pay extra to enjoy the garage cash cover benefits?

The Garage Cash Cover is an add-on in most situations. This warrants that you will have to pay a marginal sum to include in your Comprehensive Auto Insurance Contract. However, some insurers can bundle the same in their Comprehensive Plan.

2. Can this cover be bought for just one year?

Yes, you can buy an add-on for a year. You can delete it from your package when renewing the policy if you do not want to proceed with that cover.

3. Is there any 'minimum days' requirement to get the benefits of garage cash cover?

Yes, in most situations, there is a provision for 'minimum days.' The information will be given in the Policy Terms.

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