What is “loss of use” coverage?

Loss of use coverage means just what the name implies, coverage for when you lose the use of your vehicle due to an incident. While your vehicle is undergoing repairs, the insurance company typically allows a set amount per day for a rental vehicle.  Loss of use coverage is meant to keep you in a vehicle as you are paying for coverage on a vehicle that you do not have use of at the moment. Keep in mind that the insurance company will require you to rent a vehicle that is comparable to yours in type and value in order to approve the claim.

Liability coverage does not usually include loss of use coverage, though you can add it to your policy. It typically is not too expensive. Collision and comprehensive policies usually include loss of use coverage.  Now, if your vehicle is a total loss, the insurance company will typically send you payment for the value of your vehicle.

To file a loss of use claim, be ready to present an accident report and pictures of your vehicle along with repair quotes to the insurance company. If you are found not to be at fault, the at-fault person’s insurance will pay for your rental. It I important to know beforehand how much your coverage will pay per diem. This amount varies, though it usually can be up to $50. Be sure to document as much as you can, including how long your vehicle will need to be in the repair shop, as the insurance company might require additional proof and paperwork if your vehicle is in the repair shop for an extended period of time. Knowing the ins and outs of your policy and coverage will help the process run more efficiently if you keep yourself informed. Of course, our agents are also here to support you every step of the way.

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