Motor Insurance Policy Exclusion Clauses - Loss of Use


Insurance:

In this article we will be looking at the "loss of use" exclusion clause in your car insurance policy.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 !!

Some insurance companies have a team of appointed repairers who will offer you a courtesy car if one should be available. A small number of insurance companies have a hire car scheme added to their policy whereby they will book a car for you from their chosen hire car partner. However, most insurance companies do not offer either of these options.

Most insurance companies offer a rental car option to their comprehensive policies. The option is quite pricey and the cover offered is quite limited. You must decide if you feel it essential that you purchase it. It is far from a vital 'add on' for everybody. Answer these questions:

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

If you could cope without a car for a few days, you don't really need to purchase this extra cover. If you're sure that you can't then you should pay the additional premiums.

Remember, if an accident is your fault or your car is stolen, you will not be able to claim any car rental costs from a third party. You can't use a 'credit hire' company. You can't rely upon the prospect of a courtesy car from the repair shop. So this additional cover becomes valuable to you.

Equally, if you do not wish to use your insurer's recommended repairer, or your car is a total loss, the hire car extra cover will come to the rescue. Let's take a look at what you can hope to see in an average policy.

You may only hire a car if yours is off the road for at least two days, but the maximum hire period 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,insurance company and repairer when repairs have overrun because of non-availability of parts and nobody wants to pay the extra car rental costs.

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

There's usually a maximum distance that the hire company will deliver a rental car so if you live out in the country and the hire company is a fair distance away from you, expect an extra charge if you arrange for them to deliver it to your home. Can you get to their local branch yourself?

Your own motor insurance policy will cover the hire car as if it were your own car. That helps the insurance company to keep down the cost of the hire car cover but if you are involved in an accident whilst using the rental car, the claim will be on your policy.

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

Policies might define a maximum hire period, such as fourteen days. If your car is repaired prior to that 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 model no more than a couple of years old. If you require something a bit larger 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 cover. The hire car will usually come supplied with a tank full of fuel. You must return it with a full tank of fuel. If you don't you will be charged by the hire company for a fill up. And they charge a ridiculously high price for fuel!

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

This article explaining the loss of use 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 Travel Insurance For People Aged Over 65.


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