One of the coverages that some car insurances offer is replacement vehicle coverage . This guarantee is one of the most demanded by users, since it guarantees them to have a car while theirs is in the workshop. In this article we will tell you what replacement vehicle coverage is in car insurance and what you have to take into account when including this guarantee when taking out car insurance.
What is replacement vehicle coverage in your car insurance?
Comprehensive car insurance and most extended third-party insurance include replacement vehicle coverage. This coverage guarantees that the insurer will make a vehicle available to the policyholder while his is in the workshop.
But the replacement vehicle warranty has its limitations; and it is necessary to know them to assess whether or not we are interested in hiring it or, at least, to know what we are going to find if we have to claim it.
Limitations of replacement car coverage
The first thing to keep in mind is that the company offers a vehicle of a specific category depending on what we have contracted. There are several categories, and it is necessary to review them; especially if we need a large car or to go on long road trips and the guarantee alone does not offer a small replacement car. For example, for a family of five with small children and using safety seats, it is not the same for the replacement car to be an Opel Corsa as a Renault Scenic.
On the other hand, if your vehicle is a van or a derivative of tourism (minivan, SUV) you have to bear in mind that the replacement vehicle that the company will offer you, regardless of the class, will always be a tourism. And this can be a problem, especially if the vehicle has work uses.
In this case, it is important to verify if the company offers the possibility of reimbursing the rental bill in case you need to rent a vehicle because those offered by the insurer do not meet the needs.
However, it is recommended that you review the policy carefully, since the characteristics of the replacement car offered by the company are specified in the contract. In general, the policyholder will receive a car similar to the one they have and in the same category, but it is still a good idea to check and verify which category the vehicle belongs to and what other cars are included in it.
Covered contingencies, duration and since when
Another point that is important to know is what contingencies are covered by the replacement vehicle coverage, for how long and from what moment.
Normally, this coverage only covers accident, robbery or theft, and does not always include breakdowns. In addition, in many cases it is not available from the first moment, but only in case the vehicle cannot be used after a certain number of days.
As for the duration, this can vary, and it is an important point to take into account, because it is not the same that the insurer makes a car available to the client for 5 days as it is for a maximum of 30/35 days or even until the problem is solved.
Another limitation that must be taken into account is that, in the event of theft, the provision of a replacement vehicle is limited to the age of the vehicle . In addition, in the event of an accident or breakdown, the company will only lend a replacement car if the car cannot be moved and a tow truck has to be called.
Finally, it should be noted that the replacement vehicle can normally only be requested a limited number of times per year and must be used for personal use only. In addition, in the event of a breakdown, it must occur at least 100 kilometers from home.
Conditions to be entitled to a replacement vehicle
Although in principle anyone who has contracted replacement car coverage can request a vehicle, in reality certain conditions must be met. For example, if the person requesting the replacement car is found guilty of the accident, the company will not grant them a replacement vehicle.
In addition, to be able to access the replacement car you must be over 21 years of age and have had your driving license for more than a year.