Did you know?  

Because of skyrocketing inflation and a prolonged supply chain crisis, drivers may need to pay out of pocket for months’ worth of rental vehicle or transportation costs whilst your car is being repaired or replaced after an accident or theft. 

What is Loss-of-Use Coverage? 

Auto loss-of-use coverage, also known as rental car reimbursement, is an optional part of auto insurance. It pays for renting a replacement vehicle when your car is being repaired due to a covered incident, like an accident or theft. There are limits on daily and total coverage amounts, and it typically requires an additional premium.  

What is the cost of the Loss-Of-Use Coverage?  

The amount of coverage for loss-of-use in your auto insurance policy can vary based on your policy and the limits you select. Typical coverage costs might range from $30 to $135, with a total coverage limit per incident that can range from $900 to $5,000.

What is impacting your Loss-of-Use Coverage? 

Ongoing post-pandemic supply chain challenges are causing lengthy vehicle repair times in Canada – due to uncertain vehicle parts availability and repair backlogs – that go well past standard loss-of-use coverage. We have reports of wait times up to four months for a vehicle repair, whilst their insurance companies only cover a fraction of what’s needed to cover transportation costs. And with inflation spiking – affecting the cost of repairs and renting a vehicle – these costs can balloon quickly. 

What does Lawrie Insurance Group suggest? 

• Having the Loss of Use Coverage endorsement if you are carrying collision and comprehensive on your automobile policy. 
• Carrying the highest limit of loss-of-use coverage on your auto policy provides more comprehensive protection, greater flexibility in choosing rental cars, and peace of mind during unexpected situations. It may save you money in the long run by preventing out-of-pocket expenses. 

For more information or insights on additional optional coverages, call your Lawrie Insurance Broker today! We are happy to have a conversation with you, so you understand your policy and what coverages benefit your unique needs.

Protect your pocket and stay on the road with Loss-of-Use Coverage.

Contact a LIG Broker Today to learn more and ensure you’re covered when it counts!