Car Insurance Policy Exclusion Clauses – Loss Of Use


Let’s look at the “loss-of-use” exclusion in your car insurance policy. It describes what alternate transport your insurer will provide if your vehicle becomes unusable due to theft or accident. The majority of cases, the answer is negative.

A few insurance companies have a team that can repair your vehicle and provide a courtesy vehicle if it is not available. Some insurance companies offer a car rental program that will allow you to rent a car from their preferred car hire partner. Most insurers don’t offer either of these options.

Many insurance companies offer a rental car option as an addition to their comprehensive policies. This option is costly and offers very limited coverage. It is up to you to decide if it is necessary. It is not an essential “add-on” for everyone. These questions can be answered:

Would it be possible to get my car off the road if I wanted?

– How do you get to work?

– get the children/grandchildren to school?

– go shopping

Go on vacation?

– follow my sports, social interests, hobbies etc?

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You don’t need this extra coverage if you can live without a car for a time. You should make sure you have this coverage if you are unable to.

Keep in mind that if your car is damaged or stolen, you cannot claim car rental costs from anyone else. A ‘credit rental’ company is not allowed. The garage can’t loan you a new car. This extra coverage is valuable.

You can also use your car rental extra coverage if your insurance company doesn’t recommend a repairer or you have a car that has been written off. Let’s take a look at what you can expect from an average policy.

A car may be rented only if it is not in use for more than two days. The maximum rental period is however fourteen days. The additional costs to the car rental company will apply if you require the vehicle for longer than that. When repairs are not completed on time, there have been numerous arguments between the vehicle owner and the repairer. This is often due to insufficient parts. No one wants to pay extra for the car rental.

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A hire car cannot be used for windscreen or glass only.

The minimum distance a hire company can deliver a car is usually a few miles. If you live far from major cities, expect to pay an additional fee if they have to deliver the car to you. Is it possible to get to the depot by yourself?

For comprehensive benefits, your own car insurance policy will cover the rental car. This allows your insurer to lower the cost of your hire car coverage. However, if you are in an accident while renting a car, your policy will cover the claim.

If your car is legal and safe to drive, the car cannot be hired after it has been repaired. You can get the car back if your vehicle is unsafe to drive.

Some policies may impose a maximum rental period of fourteen days. You must return your hire car if your car has been restored before this date.

Most likely, the car you rent will be a small, manual-gearbox model that is less than two years old. You might need to pay more if you require something larger. They will attempt to find an automatic for you within the vehicle categories specified in your cover. A full tank of fuel will be included in the hire car. It is your responsibility to return the car with full fuel tank. The hire company will charge you for filling up if you don’t. They also charge very high prices per liter.

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Some rental companies will ask for your credit card number if you have one. This is to insure against any need to fill your car up or repair any scratches or bumps that may occur while you are driving it.