Car Insurance - Why Loss of Use Should Be Part of Your Policy

by: Thomas Ajava

People often say that the car has replaced the horse in modern society. This is really inaccurate. The car is far more important than the horse ever was. Don't believe me? When was the last day you went without driving your car? It was probably a long time ago. Even if it wasn't that long ago, how long do you think you could go without a car? Unless you live in a city, the answer is probably not very long.

When buying car insurance, many people assume that they're getting certain things. Obviously, they expect to be covered in case they cause an accident with another car. They also expect the car insurance will pay for the repair or replacement of their own car should it be damaged. One of the things that they may not really contemplate, but do expect, is that they will be given a replacement car while theirs is being replaced. Many policies actually do not provide for this automatically. If you are at all dependent upon your car, it is vital that you make sure that this type of coverage is included. Rental cars are not cheap!

So how do you tell if you have this kind of coverage? Well, you need to look at your insurance policy. The language you are looking for refers to something called "loss of use." What is loss of use coverage? As the name suggests, loss of use coverage refers to the expenses for transportation while your car is in being repaired or replaced. In more practical terms, this simply means that you have coverage for a rental car. Indeed, many people including those in the insurance industry refer to this clause of the car rental coverage clause.

Buying loss of use insurance with the car policy is definitely something you want to do. The idea of buying more insurance probably is one of the least favorite things for most people. That being said, going for days without your car is far worse. Most of us drive to work and home. Most of us need our cars just to get around to find basic things like food. You really don't realize how dependent you are on a car until you don't have it. If you don't believe me, try a simple little test. Lend your car to a friend one morning and tell them not to bring it back till the end of the day. I guarantee that you'll be going batty by noon!

Loss of use insurance is simply worth its weight in gold. It may not seem like it now, but it will when you suddenly need to get around and your car is in the shop. Paying for a rental car with your own money for more than a few days is an extremely expensive proposition. Paying 10 to 20 bucks a year extra on your car insurance to get loss of use coverage is definitely a better deal. Do it!