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Everything You Need to Know About Downtime Allowance Car Insurance Add-on

By Juhi Walia
12 August 2022, 11:43 AM

You're often left without transportation when your car is in the shop for repairs. This can be a significant inconvenience, primarily if you rely on your car to get to work or run errands. With downtime allowance car insurance, you're reimbursed for the cost of alternative transportation while your car is being repaired.

Downtime allowance car insurance is an add-on to your regular car insurance policy that provides coverage for the cost of commuting to home and work or college and home for the time when your car is in a repair shop or garage for more than two days getting repaired for the injuries it sustained during an accident, natural or man-made disaster, etc.

If you are interested in downtime allowance car insurance, read this post, where we will detail this.

Why Should You Buy Downtime Allowance Car Insurance Add-on?

It is essential for people who commute daily to work to have this car insurance since you can never really know when tragedy hits you, and when it does, you want to be as prepared as you can be to make the whole experience not so unpleasant. Because, let's face it, for many drivers, there's no such thing as a paid vacation - they still need to work while their cars are being repaired, so they'll still earn money.

This type of coverage is especially important if you're a ride-sharing driver or delivery driver, as your income is directly tied to the number of hours you can work. 

Advantages of Buying Downtime Allowance Car Insurance

Here are some of the benefits of buying Downtime Allowance Car Insurance:

Save Money

Regularly commuting to work, school or other destinations can be expensive, especially if you have a long commute from one location to another. The money you spend on these trips can add up over time, costing you more than you might expect. However, if you buy downtime allowance car insurance, this could be one less thing to worry about, as it will cover your travel expenses.


If you purchase downtime allowance car protection, there is no need to worry about how you will get to work while your vehicle is being serviced or repaired. You can relax at home while waiting for your vehicle's service or repairs to finish without worrying about issues like financial stress, parking fees, and all the other inconveniences that come without a vehicle. 

Time Savings

Getting back into the routine after a disruption caused by accident can take time. Some people may not even know how to change their lifestyle, so they spend more on transportation. All these inconveniences can make life difficult, but if you buy downtime allowance car insurance, all your problems will be solved, and life will return to normal soon enough.

What is Covered Under Downtime Allowance Car Insurance Add-on Cover?

  • The car insurance company will cover the fixed amount for daily commutes for a specific number of days.
  • If your car is being repaired at the car insurance garage, the company will reimburse you for the commute of up to 10-15 days, depending on their policy.
  • If there's a total loss or theft of the vehicle, then depending upon their policy, the insurance company will pay you an allowance for 15-20 days.

What is not Covered Under Downtime Allowance Car Insurance Add-on Cover?

  • You will not be paid a daily allowance if your car insurance claim gets rejected.
  • If your vehicle is not being repaired at an authorized garage, no claim will be entertained.
  • 98You can not claim if the glass parts of your car, such as the windshield, sustain any damage.
  • Some car insurance companies only offer an allowance if your car is in the garage for a specific number of days, such as if the repair time for your car is more than two or three days. So, if your car gets repaired before the said period, the insurer won't pay the allowance.

How to Claim Downtime Allowance Car Insurance?

The car insurance claim process for downtime allowance car insurance is pretty straightforward.

1. Contact your insurance provider and inform it about the whole incident resulting in damage. Depending on the insurance company, your claim process can vary. You should follow the instructions provided in your policy document for a claim.

2. Documents You Need to Submit

  • Copy of your insurance policy
  • Copy of First Information Report, if needed
  • Copy of your driving licence
  • Duly filled claim form
  • Written application for claim
  • Any other documents requested by the car insurance company

How to Buy Downtime Allowance Car Insurance?

You can buy a downtime allowance car insurance add-on online as well as offline, based on your preferences. Let's check out both ways below.

Online: The easiest way to buy downtime allowance car insurance is by doing it online. You can find a wide range of companies that offer this type of policy and compare them. Some companies offer upfront pricing while others do not, so it is essential to check what suits your needs the best. It is also advisable to shop around as prices can vary significantly. Once you have decided on a company, you must register with them and then visit their website page to continue the process. Fill in all the details and choose the add-ons you want to buy with it. Lastly, make the payment, and you are all set.

Offline: Offline options are available if you want to speak to someone face-to-face about your purchase. Visit your local branch or call customer service and speak to an agent to help you decide the best option for you. Select the policy and coverage options, complete all the formalities, choose your preferred payment method, and you are done. 


Though it is not mandatory, downtime allowance car insurance is an excellent add-on for your vehicle. This type of insurance will cover the expenses associated with your car being out of commission due to an accident. In addition, this type of insurance can also cover the cost of a rental car while your vehicle is being repaired. 

Read more -

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1. Can I buy a daily allowance add-on with third-party car insurance?

No, this add-on can be brought with a comprehensive car insurance plan or a standalone own damage policy at an additional premium.

2. Can I still claim if my vehicle got into an accident a week ago?

The claim for your daily allowance cannot be made after a certain period. Some companies only allow you to initiate the claim within three days. Therefore it is necessary to initiate a claim as soon as possible.

3. Can I claim downtime allowance in case of a riot or flood?

This entirely depends on your insurance provider as some companies provide it and some don't. So it is always best to check with your insurer first.

4. How much allowance can I expect to get under allowance cover?

One can expect around INR 500 to be paid daily, depending on the policy term. You can also expect this amount to be paid in a lump sum in case of permanent loss of the vehicle.

5. Can I purchase a downtime allowance in the middle of the policy?

This also depends on your car insurance company, as some may allow it and some may not. 

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