Policy Exclusions - Loss of Use 

Another likely exclusion in your car insurance policy is 'loss of use'. This section of the policy does not provide you with any means of alternative transport.

Some insurers have a network of approved repairers who will supply you with a courtesy car if one should be available. A few insurers have a hire car scheme added to their policy whereby they will book a car for you from their chosen hire car company. Most do not have either of these things.

Most insurers offer a hire car extension to their comprehensive policies. The extension is expensive and the policy cover is quite limited. You must decide if you need to buy it. It is not an essential 'add on' for everyone. Ask yourself these questions:

If my car was off the road would I still be able to :
- get to work (by bus, train, cycle, walk)?
- take the children/grandchildren to school?
- go shopping
- go on holiday?
- pursue my social interests, hobbies, sports etc?
If you could cope without a car for a few days, you do not need to buy this cover. If 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 won't be able to recover any hire car costs from another person. You won't be able to go and see a 'credit hire' firm. You can't rely upon the prospect of a courtesy car from the garage. So this extra cover becomes valuable to you.

Equally, if you do not want to use the recommended repairer of your insurance company, or your car is a total loss, your hire car cover will come to the rescue. Let us look at what you might expect from a typical policy.

You can only hire a car if yours if off the road for more than 2 days, but the maximum hire period is 14 days. If you need it for more than this you will have to pay the hire firm yourself.

You can't have a hire car for a windscreen or glass only claim.

There is usually a delivery maximum so if you live out in the sticks and the hire firm is some distance away from you, expect an additional charge if you arrange them to deliver it to you. Can you get to the local depot yourself?

Your own motor policy will cover the hire car for comprehensive benefits. That helps your insurer to keep down the cost of the hire 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 the damage to your car is such that it is still safe and legal to drive. If not, you can have the car from the date of the accident.

Policies might impose a maximum period of hire, such as 14 days. If your car is repaired prior to this date, you must return the hire car as soon as you have your car back.

The car supplied is likely to be a small, manual gearbox vehicle no more than a year or two old. If you need something a bit bigger you might have to pay extra. If you need an automatic efforts will be made to locate one for you within the vehicle groups 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 firm for a fill up. And they charge a very high price per litre!

Some hire firms will want to collect your credit card number, if you have one, against the possibility of having to fill up your car or bumping it whilst out and about.

Finally the cover under this section only applies to the UK.

Next..... UK Car Insurance Policy Exclusions - Fair Wear & Tear