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Ezine Ready

By: Trevor Dace

Let's now consider the "loss of use" exclusion clause in your car insurance document.It lays out what alternative transport your insurance company will give you if your own car is not usable because of theft or accident. In the majority of cases the answer is nothing !!

Certain insurers have a team of appointed repairers who will offer you a courtesy car if one should be available. A small number of insurers 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 offer either of these options.

Most insurers offer a rental car option to their comprehensive policies. The option is far from cheap and the policy cover is fairly limited. You must decide if you feel it essential that you buy it. It is not an essential 'add on' for everyone. Answer these questions:

If my car was off the road would it be possible for me to :
- get to work (by train, bus, cycle, walk)?
- take 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 buy this extra cover. If you're sure that you can't then you should check that you have this cover.

Remember, if an accident is your fault or your car is stolen, 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 probably can't be certain of the loan of a courtesy car from the repairers. So this additional cover becomes valuable to you.

Equally, if you do not want to use your insurer's recommended repairer, or your car has been written off, the hire car extra cover will come to the rescue. Let us look at what you should expect from a typical policy.

You can only hire a car if yours is disabled for over two days, but the maximum hire period is 14 days. If the hire car is required for longer than this you will have to pay the additional cost to the car hire firm. There's been many an argument between insurer, repairer and car owner when repairs have overrun because of non-availability of parts and nobody wants to pay the extra car rental costs.

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

There's usually a delivery maximum so if you live out in the sticks and the rental firm is a fair few miles away from you, expect an extra charge if you want them to deliver it to your home. Can you get to their nearest depot yourself?

Your existing car insurance policy will cover the rental car for comprehensive benefits. That helps the insurer to limit the price of the rental car cover but if you have an accident in it, the claim will be on your policy.

The car can only be hired from the date your car goes in for repair if it is still legal and safe to drive your car. If the car is not roadworthy you can have the car from the day of the accident.

Policies could well impose a maximum period of hire, such as 14 days. If your car is restored prior to this date, you have to return the rental car as soon as your car is returned.

The hire car supplied will almost certainly be a basic, manual gearbox vehicle no more than a year or two old. If you need something a bit bigger you might have to pay a supplement. If you require an automatic efforts will be made to locate one for you within the vehicle groups specified in the policy. The rental car will usually come complete with a full tank of fuel. You must return it with a full tank. If you don't you will be billed by the rental firm for a fill up. And they charge a ridiculously high price per litre!

Some rental companies will ask for an imprint of your credit card, guarding against the chance of having to fill up your car or bumping it whilst out and about.

Free Article Provided by: http://automobile-book.com

This article detailing the loss of use exclusion clause of a car insurance policy was written by Terry Cod. He has several years of experience working in the claims office of a number of UK insurance companies. His website www.instant-online-insurance.co.uk offers Over 65 holiday insurance.

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