Auto Insurance - The Loss Of Use Policy Exclusion

Here we examine the "loss of use" exclusion clause in your car insurance document.It specifies what alternative transport your insurance company will provide you if your own car is off the road because of theft or accident. In most cases the answer is in the negative !!

Certain insurance companies have a team of retained repair shops who will offer you a courtesy car if one should be available. A few insurance companies have a car hire scheme added to their policy whereby they will provide a vehicle for you from their chosen car hire company. However, most insurance companies do not have either of these options.

Most insurance companies offer a rental car extension to their comprehensive policies. The extension is expensive and the cover offered is quite limited. You should decide if you feel it essential that you buy it. It is not a vital 'add on' for everybody. Ask yourself these questions:

If my vehicle was off the road would I still be able to :
- get to work (by train, walk, bus, cycle)?
- take the children/grandchildren to school?
- go shopping
- go on holiday?
- pursue my social interests, sports, hobbies etc?

If you could cope without a vehicle for a while, you don't really need to buy this additional cover. If you're sure that you can't then you should check that you have this cover.

Remember, if your car is stolen or an accident is your fault, you will not be able to claim any car hire costs from another person. You won't be able to go and see a 'credit hire' company. You can't rely upon the prospect of a courtesy car from the repair shop. So this extra cover becomes worthwhile for you.

Similarly, if you do not wish to use the recommended repairer of your insurance company, or your car is a total loss, your car hire additional cover will save the day. Let's take a look at what you can hope to see in an average policy.

You can only hire a car if yours is disabled for at least two days, and the maximum period of hire is fourteen days. If the hire car is required for longer than this you will have to pay the hire firm yourself. There has been many an argument between car owner,insurer and repairer when repairs have overrun because of non-availability of parts and nobody wants to pay the additional car rental costs.

You cannot claim a hire car for a glass only or windscreen claim.

There is usually a maximum distance that the hire company will deliver a rental car so if you live out in the sticks and the hire company is some few miles away from you, be prepared for an additional charge if you want them to deliver it to you. Is it possible for you to get to their local depot yourself?

Your existing car insurance policy will cover the hire car as if it were your own car. That helps your insurer to keep down the price of the hire car cover but if you have an accident in it, the insurance claim will be on your policy.

The car can only be hired from the date your car goes in to be repaired if the damage to your car is such that it is still legal and safe to drive. If the car is not safe to drive you can hire the car from the date of the accident.

Policies could well impose a maximum hire period, such as fourteen days. If your vehicle is restored prior to that date, you must return the hire car as soon as you have your vehicle back.

The rental car supplied is likely to be a basic, manual gearbox vehicle no more than a couple of years old. If you require a larger model you will probably have to pay a supplement. If you desire an automatic they will try to locate one for you within the vehicle groups specified in the policy. The hire car will usually come complete with a full tank of fuel. It must be returned with a full tank. If you don't you will be charged by the hire company for a fill up. And they charge a ridiculously high price per litre!

Some hire firms will want to collect your credit card number, if you have one, guarding against the chance of having to fill up your car or bumping it whilst using it.