Do you know what is covered on your auto insurance policy? Many don’t realize what they need to be looking for on their auto insurance quote. One of the things you NEED to make sure is included on your car insurance policy is loss of use coverage.

Take the scenario below for example:

On the way to work you are involved in a car accident. The damage isn’t too bad, but you find out your car will need to be in the shop for at least a week and you will need a rental. Loss of use coverage is the endorsement on your auto policy that allows you to obtain a rental during the time without your vehicle. 

When you add loss of use coverage to your auto policy, you will be able to select your desired coverage limits, which affect your premium, but also determine how much is covered each day and the maximum allowable for each loss.

Higher limits will provide you with the option of selecting a lower daily limit rental to extend the maximum allowable coverage for a loss, which may not be possible with a lower loss of use coverage selection.

Remember that loss of use coverage is limited to the period of time reasonably required to repair or replace your vehicle (excluding delays caused by the shop or customer), and insurance companies will pay up to the daily coverage maximum shown for loss of use on the declarations page – this doesn’t include additional fees for insurance, damage waivers, optional equipment, fuel or accessories.

If you have any questions about your current auto policy, please feel free to contact our office. One of our wonderful insurance advisors would be happy to walk you through the process of obtaining proper car insurance.