What is the purpose of "loss of use coverage"?

The purpose of "loss of use coverage" is to ensure that a policyholder is compensated for rental expenses incurred while their vehicle is being repaired after a covered loss. This form of coverage recognizes that when a vehicle is rendered unusable due to an accident or other qualifying event, the policyholder may need alternative transportation to maintain their daily activities, such as commuting to work, running errands, or fulfilling other obligations.

By covering rental expenses, this type of insurance alleviates the financial burden of out-of-pocket costs that can arise while waiting for repairs to be completed. It's important for policyholders to understand that this coverage typically applies only when a covered loss occurs, and may have limits on the daily rental rate or the total duration for which expenses are covered.