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When does your vehicle cover supply a rental vehicle?

SmartInsure

Car repairs can take days, even weeks that’s why it is important to know if car hire is included in your vehicle cover.

When purchasing vehicle cover, people only think about the costs of repairing or replacing their vehicle. But repairs can take days, even weeks. How will you travel to work? How will you drive the children to school?   

Insurance companies usually offer three types of vehicle cover: comprehensive cover, third party cover, theft cover, and sometimes total loss cover. All of these do not give you access to a rental car unless you purchase an additional cover which is called “Car Hire”.

How does it work?

Car hire cover is added to your vehicle cover at an additional cost. This gives you access to a car while your claim is being processed. Insurers usually provide this benefit to consumers whose cars have been damaged, stolen, are undrivable, or are being repaired.

Your insurer teams up with a car rental company that will supply you with a vehicle you can use for up to 60 days, depending on the agreement you have with your insurer. However, if your claim is settled before the set date, you will need to return the car. 

The cover will be provided if the person who was driving the car is one of the drivers who are listed on the policy document. That person can be your spouse, child, or helper. If it is not you – the regular driver – or any of your listed drivers, your claim might be rejected, or you may incur extra costs. 

In addition to this, make sure the person driving your car has a valid driver’s licence. Failure to prove that the driver complied with this requirement and other traffic laws could lead to the rejection of your claim.

Tips when hiring a car

1.    Choose a vehicle that will best suit your needs. Consider matters like children and what you will be using the    vehicle for.

2.    Check the terms and conditions of the car rental. How far can you drive the car? Is it going to be delivered or are you going to collect it yourself?

3.    Talk about the costs of the rental. Do you have to pay a deposit? What will happen if you damage the car? Who is going to pay for those damages?

Moreover, insurance companies usually exclude cover for vehicles that are experiencing mechanical failures. Make sure you familiarise yourself with the terms and conditions of your cover. Speak to your insurer about road side assistance, as some insurers do provide it at an additional cost.

You may also have to be extra careful with the hired car as you could be liable for any damages. Most rental companies will ask you for a deposit and go through a vehicle checklist with you to ensure that the vehicle was received in good condition. If something happens to the hired vehicle, you may have to pay the excess, and the company may charge you if you go over your mileage. 


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