Right Loss-Of-Use Coverage For Vehicle
The skyrocketing inflation and a protracted supply chain crisis exist, and there is no denial to that. Canadian drivers may be forced to pay for months’ worth of rental vehicle or transportation costs while their vehicles are being repaired or replaced followed by an accident or theft. It may lead you to wonder if you have enough coverage for vehicle loss of use.
WHAT EXACTLY IS LOSS-OF-USE COVERAGE?
“Loss-of-use coverage” in your vehicle insurance policy means that if you weren’t at fault, your insurance company will provide you with a replacement vehicle or reimburse you for transportation costs while your car is being repaired or replaced. If the driver is at fault, they will not be covered unless they purchase an optional endorsement.
HOW MUCH IS YOUR AUTO INSURANCE POLICY GOING TO COVER?
The annual fee for the loss-of-use endorsement varies according to your insurance company and the amount of coverage purchased. According to a research, drivers can purchase coverage for 30, 60, or 90 days, or by the dollar amount. The average coverage amount of $900 is only meant to cover a few days’ worth of expenses.
WHAT FACTORS ARE INFLUENCING YOUR LOSS-OF-USE COVERAGE?
Ongoing post-pandemic supply chain challenges are causing lengthy vehicle repair times in Canada, which go well beyond standard loss-of-use coverage, due to uncertain vehicle parts availability and repair backlogs. According to the research, drivers can expect to wait up to four months for a vehicle repair, while their insurance companies only cover a fraction of the cost of transportation. And, with inflation affecting the cost of repairs and renting a vehicle, these costs can quickly balloon.
DO YOU HAVE ADEQUATE LOSS-OF-USE INSURANCE?
Drivers should be prepared to go months without access to their vehicle in the event of an accident requiring repairs or theft, adding that drivers can expect to pay up to $50 for an additional 30 days or $1,500 of coverage.
You Insurance Broker can assist you in ensuring that you have adequate Loss-of-Use coverage.
GET IN TOUCH WITH OUR EXPERT A-KAN INSURANCE BROKER, TODAY!