Hotel Accommodation if Car Breaks Down Middle of Highway

Posted on: Mar 22, 2024 | 3 mins | Written by: HDFC ERGO Team

Hotel Accommodation if Car Breaks Down Middle of Highway

Purchasing an appropriate car insurance policy is as crucial as choosing a suitable car model. Why? Well, think of car insurance as a safety net that activates when your car gets affected by an accident, theft, natural or human-made disaster, and other such unforeseen events. However, the policy type governs the extent of coverage you get. Here’s a rundown of the various car insurance policies available in India:

1. Third-party insurance

The Motor Vehicles Act of 1988 mandates every car owner in India to have third party car insurance covers financial liabilities arising from injury or death of third parties or damage to their property caused by an accident involving the insured car.

2. Own damage insurance

Standalone own damage insurance coverage kicks in if the insured vehicle suffers damages due to accidents, natural disasters (like cyclones and earthquakes), human-made disasters (like terrorist acts and riots), thefts, fire, and other unfortunate events. Own damage allows you to include add-on covers like a zero depreciation cover, emergency/roadside assistance (RSA) cover, etc. for more exhaustive coverage.

3. Comprehensive insurance

Those looking for holistic financial protection for their four-wheeler should consider comprehensive car insurance. It offers the benefits of both third-party and own damage insurance. Therefore, such a policy covers accident-related third-party liabilities and damages to the insured vehicle caused by an accident, natural or human-made disaster, theft, and other factors.

Comprehensive insurance is generally a better option as it provides complete financial protection. You can opt for more exhaustive coverage through add-on covers like a zero depreciation cover, return-to-invoice cover, RSA cover, and the like.

Did you know if your car breaks down in the middle of nowhere and you have an RSA cover, you can even get help finding hotel accommodation by contacting your insurer? Today, let’s discuss this lesser-known fact!

Roadside Assistance Cover (RSA)

Thanks to advanced technology, the likelihood of vehicles breaking down has reduced. However, the possibility isn’t zero. Your car failing in the middle of a highway can be problematic and dangerous. The emergency or RSA add-on cover available with comprehensive car insurance or standalone own damage insurance is beneficial in such situations. This cover is especially apt for people who often go on long-distance road trips and/or are unfamiliar with car-related issues. It typically covers:

• Flat tyre

A flat tyre is a common issue that’s easy to fix, provided you have a spare tyre. If you don’t, you can contact your insurer and get help.

• Towing service

If the appointed technician can’t resolve your car’s issue, the RSA add-on covers the expenses incurred to tow your vehicle to a garage.

• Battery jumpstart

If your car battery has severe issues, it can no longer function. In such a situation, the battery requires a jumpstart. An insurer-appointed mechanic helps with this.

• On-spot minor repairs

The insurer also covers minimal repair work that the mechanic can do at the site of the vehicle breakdown.

• Fuel tank refill

If your vehicle runs out of fuel and won’t budge, the insurer can help refill the tank. If bad fuel is the issue, the tank will require emptying at a nearby garage. The RSA add-on also covers this.

• Taxi support

If the car doesn’t start and requires towing to a garage, the insurer arranges for an alternate transport mode for you. However, the policy only covers the commute cost up to a specific distance.

• Hotel accommodation

Imagine you’re on a road trip, and your car malfunctions in the middle of a highway. Upon calling your insurer, you get help, but the repairs will take a long time. In such a situation, searching for a place to stay for the time being becomes crucial. Often, the insurer can help you find a hotel for an overnight stay. While some insurance policies cover accommodation expenses, some only assist you in locating a hotel and don’t pay for the overnight stay.

However, as is with every insurance benefit, insurers offer help with hotel accommodation under specific conditions mentioned in the policy document. For instance, the policy may state a minimum applicable distance from the policyholder’s registered address. If only the car breaks down beyond this stipulated distance, the policy covers the accommodation expense.

To file an RSA cover claim, you must maintain evidence in the form of a hotel (tax) invoice. Upon request of the insurer, you must submit this document for payment processing. Additionally, if the reason for the breakdown is outside the purview of the insurance policy, the insurer can reject your claim.

Most add-on covers depend on the vehicle’s insured declared value (IDV). However, in the case of the Roadside Assistance Cover, the insurance company decides the accommodation expenses it’s liable to cover under specific conditions. The policy document mentions the allowance amount and the premium associated with it.

Additionally, the RSA cover helps you get a spare car key if you misplace your keys or lock them inside the car. It also helps with urgent legal assistance if your four-wheeler is involved in an accident and the situation gets out of hand. Availing roadside assistance doesn’t affect your no-claim bonus (NCB). It’s worth noting that the insurer can deny an RSA cover claim if the insured vehicle is used for racing or other illegal activities or undergoes repairs without the insurer knowing.

Conclusion

As evident, car insurance can be a saviour in unforeseen circumstances. Every car owner must consider purchasing a comprehensive car insurance policy with an RSA cover to have a safety net, whether they’re in their city of residence or outside it.

Disclaimer The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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