Motor Insurance Policy Exclusions - Loss of Use

Here we examine the "loss of use" exclusion clause in your car insurance document.It lays out what alternative transport your insurance company will offer to you if your own car is not usable because of theft or accident. In most cases the answer is nothing !!

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

Many insurance companies offer a rental car extension to their comprehensive policies. The extension is far from cheap and the cover offered is quite limited. You should decide if you feel it essential that you purchase this particular add-on. It is not an essential 'add on' for everyone. Ask yourself these questions:

If my car was inoperative would it be possible for me to :
- get to work (by train, bus, cycle, walk)?
- get the children/grandchildren to school?
- go shopping
- go on holiday?
- pursue my sports, social interests, hobbies etc?

If you could manage without a car for a few days, you don't really need to purchase this additional cover. If you're sure that you can't then you should check that you have this cover.

Bear in mind, if your car is stolen or an accident is your fault, you will not be able to claim any car hire costs from a third party. You won't be able to go and see a 'credit hire' firm. You can't rely upon the loan of a courtesy car from the repair shop. So this extra cover becomes valuable to you.

Equally, if you do not wish to use the recommended repairer of your insurance company, or your car has been written off, the hire car additional cover should come to the rescue. Let's take a look at what you can expect from a typical policy.

You can only hire a car if yours is off the road for more than 2 days, but the maximum hire period is fourteen days. If you need it for more than this you will have to pay the additional cost to the car hire firm. There's been many an argument between repairer, insurance company and car owner when repairs have overrun often down to non-availability of parts and nobody wants to pay the additional car rental costs.

You can't have a hire car for a glass only or windscreen claim.

There is usually a delivery maximum so if you live out in the sticks and the hire firm is some distance away from you, expect an additional charge if you want them to deliver it to your home. Can you get to their nearest branch yourself?

Your existing motor insurance policy will cover the hire car as if it were your own car. That helps the insurance company to limit the cost of the hire car cover but if you are involved in an accident whilst using the rental car, 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 it is still legal and safe to drive your car. If your car is not safe to be driven you can hire the car from the date of the accident.

Policies might impose a maximum hire period, such as fourteen days. If your car is repaired prior to this date, you have to return the hire car as soon as your car is returned.

The rental car supplied will almost certainly be a small, manual gearbox vehicle no more than a couple of years old. If you require a larger model you might have to pay extra. If you desire an automatic efforts will be made to locate one for you within the price range 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 billed by the hire firm for a fill up. And they charge a ridiculously high price per litre!

Some hire firms will ask for an imprint of your credit card, insuring against the possibility of needing to fill up your car or bumping it whilst using it.

Article Source: http://www.myaddirectory.com

This article detailing the loss of use exclusion clause of a car insurance policy was written by Terry Cod. He has many years of experience working as a claims adjuster with a number of UK insurance companies. His website www.instant-online-insurance.co.uk offers Holiday insurance for over 70.

If You want to use this article on your website then select COPY THIS ARTICLE in the Menu on the right side!

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated