Difference between Courtesy Car and Hire Car in Car Insurance?

Under hire car insurance cover, the insured will get a replacement vehicle for travelling purposes. The vehicle will be similar to (not exactly) the size of his vehicle if the insured vehicle is damaged in an accident. The hire car is provided for a specific time so you can travel conveniently while your insured vehicle gets repaired.

In the case of courtesy car insurance cover, you get a standard vehicle which may not be similar to the insured vehicle. A courtesy car is also available for a specific period. It may not be available if your car has been stolen or written off.

Thus, hire/courtesy cars are similar to loaner vehicles, which are arranged and paid for by the insurance provider for the insured.

Here are some of the essential features that one must know.

• If the insured vehicle is damaged by the dangers mentioned in the own damage section of the policy, a hire/courtesy car will be provided.

• A hire/courtesy car will not be an exact replacement for the insured vehicle.

• You typically get the hire/courtesy car within 24 hours of the vehicle reaching the garage or claim acceptance by the insurance provider (whichever is earlier).

• The insurance provider pays for a hire/courtesy car for 10 days for a repair claim and 15 days for a theft/total loss claim.

• The hire/courtesy vehicle can be used by the insured for 8 hours a day or 80 km/day, whichever is lower.

• In case a hire vehicle is not available, the insurance provider will pay the policyholder's travel costs.

Ineligibility to Receive a Hire/Courtesy Car Insurance Benefit

Following are the circumstances when an insured may not be eligible to receive a hire/courtesy car.

• If the damage claim is only for the windscreen or other glass parts.

• If the vehicle is not repaired at the authorised garage specified by the insurance provider.

• If the claim is not valid under the own damage section of the standalone own damage policy.

• When the time is required to repair damages not covered in the policy.

Every vehicle owner must buy car insurance online to safeguard themselves from various hassles in case of accidents. Comprehensive car insurance from a renowned provider like Tata AIG offers several benefits, such as hire/courtesy car cover, customisable add-ons, affordable premiums, online purchases and renewals, etc.

Hire/courtesy car cover offers a huge relief to the insured when their vehicle is under repair and they require a vehicle on a daily basis for travel. To learn more about the courtesy car and hire car, you can reach out to us!