Below is the policy language regarding loss of use. Our policy does not limit the daily rate or the days as long as it is within the limit. We normally extend the rental out 7 days from the time the check is issued to allow for the receipt of the payment. However, based on the wording (your vehicle and covered loss), we question if there is a covered loss or a covered vehicle once payment is issued and title is signed over.

“If your vehicle cannot be used because of a covered loss, we cover the following reasonable
additional expenses you incur as a result of the covered loss, up to a maximum of $15,000: transportation expenses; meals, lodging and phone expenses if you are more than 50 miles from your closest residence.”

What is your opinion on this loss?

Arizona Subscriber

You are misreading the loss of use coverage. The coverage is for loss of use of the vehicle because of a covered loss. That is what happened. In other words, the loss to the car and the resultant loss of use occurred at the time of the accident and the car certainly was the covered auto at the time of the loss. Since the title was signed over after the loss occurred, you are right that the insured does not own the car and it drops from the covered auto designation at this time. But, the actual loss and loss of use occurred at the time of the accident and the current status of the car does not change the time when the actual damage and loss of use occurred.

As for the amount to pay for the loss of use, the policy language stipulates that the insurer will pay up to a maximum of $15,000. There is no stated limit on how much to pay daily or how long the payment will continue. So, the key point is the amount to be paid, not how long it takes for a new vehicle to be delivered.