One of the main objectives of Motor Insurance is to give car owners peace of mind in the event of an accident. In keeping with this objective, many car insurance companies give their clients the options of including a courtesy car in their cover. This makes it possible for the client to maintain mobility as they wait for their car to be fixed. This enhancement to a regular cover is indeed a very useful option for people whose lifestyles require full time access to a car. In this sense, it is important to note that in some situations, a car owner will not qualify for a courtesy car in the event that the car becomes unavailable.
Situation 1: Stolen Car
First, insurance companies do not provide courtesy cars when a car has been stolen. A stolen car usually involves the police and therefore there is no clear indication of when the car will be found, or even when it will be found. One of the core tenets of insurance is risk management. Whenever a risk cannot be quantified or assessed, it is usually impossible to offer an insurance cover. The likelihood of finding a stolen car within the period the insurance company usually provides a courtesy car cannot be quantified. In such situation, no cover is offered
Situation 2: Car Declared a Write-off
The second situation where a car owner may not qualify for a courtesy car despite paying for the cover is when a car has been written off. Once the insurance company declares that a car cannot be repaired economically, the company changes its focus to indemnifying the policyholder. In this case, the insurance company cannot ascertain how long it will take the car owner to find and buy another car. Therefore, the company focuses on indemnifying the car owner and leaves the responsibility of finding a new car to the policyholder.
The only situation where a policyholder can benefit from a courtesy car is when the car insured is in a garage and is financially under the insurance company. The insurance company will provide the policy holder with a courtesy car for a period usually not exceeding 30 days. However, the actual duration may vary depending on the specific terms of the policy
Based on the foregoing, it is crucial for every car owner to have a plan in place to cover the interim period after an accident that may immobilise the car. These situations as described above may arise and it is up to the car owner to find another way of getting the services of a car. Motor insurance companies have varying premium rates in regards to their policy requirements to provide courtesy cars. Please check the current rates by filling in our free insurance quote form.
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