If you have loss of use auto insurance then you will have an SEF 20 on your insurance policy paperwork. It is usually listed at the bottom of the page but could be shown on the side. Some companies will including it in a package of extras and give it a name such as "Plus Pak" or "EVO". If you cannot see it on your paperwork then check with your agent or broker so you will know for sure.
"Why on earth would I want to buy more insurance? It is already so expensive and it never gets used. I only buy insurance because I have to." Lots of people feel this way and so we at TurnersTips are going to explain to you why you might think loss of use is a good idea.
A common example is when you are in a car crash with another vehicle and your car is damaged quite badly. The other driver says that you are at fault. There are no witnesses to prove you right. Before your insurance adjuster is going to get anything from the other driver's insurance company there will have to be procedures followed. Statements will have to be made. The other driver's insurance company will have to accept fault for the accident. This takes time.
If you do not have loss of use coverage then you will have to pay for your own rental car. When all is said and done, and if the other driver's insurance company accepts the fault and therefore the liability for the accident the money you have spent could be paid back to you.
If you have loss of use coverage then you get permission from your adjuster and Bob's your uncle, you have a rental car to get you to work. It depends on the amount you have purchased on how long you will be able to keep the vehicle. If you have a $900 limit and the fee is $30 per day then you will have about one month's worth of car rental.
If you are clearly not at fault in the accident then hopefully it has all been sorted out and the other driver's insurance company is paying for the rental. This will encourage a settlement in a hurry and your vehicle will get repaired as soon as it can be arranged. Be aware that it is a set process and if one part of the process is delayed then so is your payout.
Repair garages can get very busy. Consider the amount of hail, flood, tornado, fire and other natural disasters that have been affecting us. Each of these damages vehicles. Lots of damaged vehicles means it can take a while to get your vehicle repaired. If you have a damage from any of these hazards then it is very nice to have loss of use coverage. If you didn't buy it then you just have to wait until your damaged vehicle is repaired or replaced or pay for your own rental. There is a chance that the repair garage may have a courtesy car but there are less of them available then there were in the past.
With many of the car dealers closing their doors after the economic challenges of some of the major auto manufacturers there are not as many repair shops to go to. This means that when there is a rash of claims there are less places to go to get the work done. How long will you have to go without a vehicle while you wait?
If your vehicle gets stolen or catches fire then you are going to need a replacement vehicle. You could find yourself in the same situation if you happened to drive through an area that has a flash flood. Your vehicle will not be functioning well after getting caught in deep water. It really messes up the electrical system.
Loss of use coverage is usually less then $50/year. You can buy it for a commercial as well as a pleasure vehicle. Some insurance companies will throw it in for free. Just because it could be added for free doesn't mean it always is there. You might have to ask. So take control of your insurance and talk to your agent or broker.
When you get the loss of use coverage make sure that you talk about the SEF 27 - right to rent non-owned vehicles. Your having an auto insurance policy only gives you liability coverage on another vehicle. You have to make sure you have the physical damage coverage as well. Don't be afraid to ask questions - get the answers you need.
