Spare Car Clause In Car Insurance

Get a Spare car benefit to also cover your conveyance expense, while your car is being repaired. You get a fixed sum towards hiring a transport while the vehicle is under repair for a valid claim and the repair time is more than 1 day.

In the unfortunate event of your vehicle meeting with an accident, if the insured prefers a claim and the same is admitted by the insurance company, they will pay the insured the daily benefit as mentioned below. To reduce the inconvenience caused to the insured, we will offer this benefit which can be availed only once during the Package Policy.

The insurance company will pay Insured the amount as indicated above, based on the cover opted by Insured, towards the cost of making alternative travel arrangements while Your vehicle is undergoing repairs following an accident covered under Your car policy.

What is the Spare Car Clause in Car Insurance?

The comprehensive car policy often does not include replacing parts, even if it may include servicing. Most car parts have a definite lifespan, or car spare parts expiry, and need replacement regularly after they wear out or start malfunctioning.

In a car accident, most insurers provide for the cost of, what they call, reasonable repairs, leaving out the spare parts if it is a comprehensive plan. If some plans offer replacement of components, you may never get the original parts. The original spare parts of any vehicle could cost you a bomb, and the more sophisticated a car is, the more expensive its spare parts will be. This is where the spare parts add-on comes to a car owner's rescue. You get the value for your money, i.e., premiums paid for add-ons.

Car spare parts cover is not the only add-on that you should go for if you want to be ahead of time and protect yourself from an unwanted burden on your pocket. The best way to find out what add-ons you need is to see the exclusions in your policy and then assess if you need insurance for the missing liabilities.

How it Works?

A spare car clause is a type of coverage that provides the policyholder with the option to purchase a new car in case their current one is damaged or stolen. The spare car clause is a clause in the car insurance policy that allows you to use your vehicle as a replacement for the one that was damaged or stolen.

The cost of this coverage varies depending on the insurance company and its provider. A spare car clause can be purchased as an addition to your current auto insurance policy, or it can be purchased as an alternative to purchasing comprehensive and collision coverage.

What is covered in Spare Car Cover?

  • The Daily Cash Benefit or Spare car can be availed only once during the Package Policy towards the cost of making alternative travel arrangements while your vehicle is undergoing repairs following an accident covered under your car policy.
  • The benefit under this cover will be arrived at based on the final assessment of loss after considering all the other terms and conditions of the Private Car Package Policy and opted add-on covers under the policy.
  • The vehicle should be insured under a Private Car Package Policy.
  • Your claim for accidental damages to the vehicle should be out of an insured peril and should be admitted by the insurance company.
  • The accident should have happened during the currency of the policy.
  • Claims for loss or damage to accessories only are not covered under this clause.
  • This cover is available only from the inception of the policy and it is not possible to opt for this cover during the currency of a Policy. Once this cover is selected it cannot be removed during the currency of the Policy.
  • This cover shall not be availed for replacement of windshield glass (front and/or rear) only claims or any repair work that is completed within 1 working day.
  • The repair period will always exclude the lead time that may be required by the repairer for ordering/sourcing /procuring/shipping / supplying the required spare parts and also the jobs that are to be outsourced.
  • The benefits under this cover cannot be adjusted against any other dues from you or payment to the repairer/others.
  • In the event of multiple claims intimated together for carrying out accidental repair work, with the varied date of accidents, the benefit will be applied to the maximum claim amount among all the claims so reported.
  • The settlement of the claim under this add-on cover will be decided along with the accidental damage claim to the vehicle and will be settled once the accidental damage claim is settled.
  • The settlement of a claim under this Clause will be made to you directly through a Cheque payable and sent to your address as mentioned in this policy.

What is not covered?

  • Claims under self-authorization mode are not covered under this clause.
  • Your inability to use the vehicle for any reason other than a valid claim due to an accident resulting in the vehicle being garaged for undergoing accidental repair work.
  • This cover is available only for new vehicles and vehicles up to 3 years old that are currently being manufactured and are not obsolete.
Claim Amount Up to 20, 000 20,001 to 50, 000 50,000 to 1 lakh
Maximum No. of days 3 7 10
Benefits per day in Rs Rs 150 or in multiples of Rs 50 thereof Rs 150 or in multiples of Rs 50 thereof Rs 150 or in multiples of Rs 50 thereof

How to Buy/Renew a Spare Car Cover Add-on in Car Insurance?

Car insurance can be purchased online from the PolicyBachat portal in two easy steps. At PolicyBachat we cater unbiased comparison of quotes, a 24*7 customer assistance team your motive is to give our customers the right quotes with compare car insurance rates online.

You have the option to purchase this cover via the online mode or the offline mode while buying or renewing your car insurance policy. You can buy a Cover by following the below mentioned steps.

  • Go to compare car insurance quotes online at
  • Fill in the required details and select your Car Model & Variant, RTO Location, Registration date, and Email address.
  • Click on the “START SAVING MONEY”.
  • Choose a Comprehensive Insurance plan.
  • Premiums with different insurance companies are displayed with low premiums.
  • Select the Spare Car Cover from the available Add-ons
  • After that fill in the ‘vehicle owner details and personal details.
  • Purchase the best Car Insurance Policy using online payment
  • If any queries are raised call: 1800–123–4003.

How to Claim Spare Car Cover in Car Insurance?

A claim against the Spare car in car insurance can be claimed when your car is static due to accidental damage, natural or man-made calamity like a tsunami, flood, bandh, riot, or strike that causes major damage to property, earthquake, and the imposition of curfew by a government authority, etc.

Here are the steps for claiming daily allowance Protection of your car insurance policy:

Step 1: Claim Intimation

Get in touch with the insurance company as soon as possible and inform them about the incident that caused the damage. The claim process can be different in the case of different insurance companies. A customer relationship manager of your insurer will guide you to raise a claim as per the procedure.

Step 2: Documents

Arrange the documents as conveyed by the insurer. Usually, a policyholder needs the following documents while raising a claim:

  • A duly filled claim form
  • A written application for claim
  • Copy of the First Information Report (FIR) if required
  • Copy of the Car Insurance Policy.
  • Copy of your Driving License
  • Any other documents as conveyed by the insurance company.

Top Companies that Offer Spare Car Cover in Car Insurance Policy:

Companies Plan IDV Additional Covers & Discounts Premiums
TATA AIG 1 year comprehensive 1.62 lakh daily cash allowance benefit 4793 View Plans
National 1 year comprehensive 1.84 lakh daily cash allowance benefit
4267 View Plans
Royal Sundaram 1 year comprehensive 2.26 lakh daily cash allowance benefit
5342 View Plans
HDFC ERGO 1 year comprehensive 2.40 lakh daily cash allowance benefit, commercial discount
5989 View Plans
Bajaj Allianz 1 year comprehensive 2.96 lakh
  • daily cash allowance benefit, 24x7 Roadside Assistance
  • Key replacement
  • NCB Discount
  • Commercial Discount
6234 View Plans


After all, a car is a machine that needs maintenance. More often than not, the average car service cost claimed by the manufacturers only includes the basic servicing, assuming all parts are working well. But, at times, some parts might fail or get damaged and the owner must bear the expense of spare parts replacement.

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