Exclusion Clauses Of A Car Insurance Policy
‘Loss of use’ exclusion clause in the car insurance document is a clause that gives you details of the alternative transport your insurer can give you when your car has been stolen or has been in a serious accident. This clause is not very helpful. A couple of insurance companies give their clients a courtesy car depending on the availability. Some insurers have a hire car scheme where they give the client a car from a hire car company that they have a tie up with. Most insurance companies do not offer a spare car to their clients.
If a policy includes the offer of an alternate car then the insurance company gives a rental car extension, it is up to the client to decide to buy it. Not everyone may feel the need to buy a rental car extension. It only becomes necessary when one does not find any mode of transport to get to work, drop and pick up the children from school, go out shopping or on a holiday and manage other daily chores without a reliable source of transport. If you feel you can manage well without a rental car then you do not have to pay for the extra cover.
Most often buying the additional cover is advantageous if your car has been in an accident or has been stolen – then you will not be able to get any costs from the third party. A ‘credit hire’ company too will be of no use to you. A loan too will not be beneficial in case you want to get another car in exchange of a damaged one. If for any reason you do not want to use the repairer your insurer recommends, or in cases where the car has been written off, the hire car extra cover is the most ideal.
The average car policy lets you hire a car if you cannot use your own car within two days from the mishap. You cannot hire a car for more than fourteen days. You will have to pay extra if you want to hire the car for more than fourteen days. Most often there is a disagreement between the car owners, insurance companies and car repairers that cannot be resolved fast.
If the windscreen or glass of your car has been broken in an accident then you are not eligible to hire a car according to the policy. Also extra charges are levied by the hire companies if you are residing away from the metropolitan cities depending on the distance. Check to see if there are any local branches close to your place.
Extensive benefits are offered by insurance policies for hiring of cars. If while using a hired car you meet with an accident then the claim will be on your car insurance policy. You can hire a car only on the same day your car goes for repair. If your car is not fit to be driven then you can hire the car on the day of your accident.
Policies specify the maximum period of hire – that is fourteen days. If you get possession of your car before fourteen day then you must return the hired car. Do not expect any thing fancy or luxurious while hiring a car, all you will get is a basic and comfortable care that is a year or two old. You will have to pay extra if you want anything specific. They will give you the vehicle with a tank full of fuel that you will have to ensure while returning the car. The charges are exorbitant for filling up your fuel tank. Certain hire companies require the details related to your credit card for refilling fuel.