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Home >> Personal Finance >> Insurance >> Auto Insurance >> Breakdown Insurance

Breakdown Insurance

We all know that vehicles can break down due to improper maintenance or poor servicing, which is why breakdown insurance is useful. After all, nobody can predict a car breakdown, be it old cars or brand new vehicles.

The insurer can always choose to repair the vehicle at the site of breakdown rather than deport it to the destination. Also, the insurer has no liability to arrange a secondary mode of transport for the policyholder in case there is a breakdown. However, the company can willfully help the individual in reaching the destination.

Types of Breakdown Insurance Policy Covers

Road rescue is a type of breakdown insurance cover for which an insurer is liable to repair or rescue in the event of a breakdown on the road. It does not extend cover in case the vehicle suffers breakdown while parked safely at home.

Road and home rescue is another type of cover where an insurer repairs or rescues in case a vehicle breaks down either at home or on the road.

Roadside rescue plus additional benefits is the most comprehensive breakdown insurance policy. It covers benefits comprising roadside and home rescue benefits. Additional benefits such as an alternate conveyance for the policyholder are also provided.

General Exclusions from the Breakdown Insurance Policy

The following are some general exclusions to consider:

  • Vehicles which are used for hire services.
  • Vehicles which are temporarily stuck due to unfavorable conditions such as floods or snow fall.
  • Vehicles used for motor racing, speed tests or car rallies.
  • Cost of any vehicle part that is damaged due to lubricants and other wear and tear charges.
  • Indirect losses to the policyholder due to vehicle break down.
  • Any defect that is pre-existing in the vehicle.
  • Damage caused while the vehicle is carrying overweight.
  • Damage caused to the vehicle due to acts of vandalism.
  • Any damage that is caused to the leftover items or accessories in the vehicle.
  • Remember to consider both small and big service providers when you search for information about breakdown insurance. A small company is likely to offer cheaper insurance with reasonable services. The advantage of opting for a big company is that it will have extensive recovery services which cover a greater geographical area.

    A breakdown insurance policy is essential to avert difficult times in case of vehicle break down or failure so don’t miss opting for one right away.