Emergency Hotel Cover in Car Insurance: Key Facts

Published By: CNBC TV18​

Published Date: 06-10-2022

When your car breaks down or gets stolen far from home, the Emergency Hotel Accommodation add-on in car insurance can be a lifesaver. This practical coverage pays for overnight stays when you're stranded due to vehicle problems.

This add-on works when your car suffers an accident making it unusable or gets stolen while you're traveling away from your registered address. It covers hotel expenses for you and your passengers until your vehicle is safely transported to an authorised repair shop or while you complete police reports for theft. The coverage activates only when incidents occur beyond a minimum distance from your home address, as specified in your policy. To claim benefits, you must keep proper documentation like hotel tax invoices for reimbursement. However, if your main insurance claim is rejected, this add-on benefit will also be denied. Unlike other add-ons that are priced based on your car's declared value, the Emergency Hotel Accommodation cover's premium depends on the maximum allowance the insurer will pay for accommodation. This maximum amount is clearly stated in your policy document.

For families who enjoy road trips or frequently travel to distant locations, this add-on provides valuable peace of mind. It ensures you won't be left scrambling for accommodation in unfamiliar places during emergencies, especially at night or in remote areas.

When purchasing car insurance, consider adding this practical coverage to protect not just your vehicle, but also your travel experience and family's comfort during unexpected situations on the road.