The Newman Blog

Should You Increase Your Loss of Use Coverage?

man getting into a late-model black car in a modern city
By:
Newman Insurance
|
Newman Insurance
|
September 8, 2022

Loss of use (transportation replacement) coverage is an important additional insurance coverage that many people neglect to carry. This coverage helps cover the cost of alternate transportation if your vehicle is involved in a covered claim.  It may be used for rental vehicles, taxi or ride sharing, or public transportation.  Unfortunately accidents do happen, and the aftermath can be quite stressful.  It can take much longer now for your vehicle to be repaired or for your claim to be settled.

You must carry physical damage coverage on your vehicle, such as collision or comprehensive in order to qualify for loss of use coverage.  Please contact your licensed broker at Newman Insurance to purchase this coverage or to check on your limit if you already have loss-of-use in place. 

There is a time limit on your loss of use coverage.  Newman Insurance recommends that you increase your limit/days of coverage for your loss of use coverage, as it is taking much longer to settle claims/obtain parts and repairs. Per Canadian Underwriter magazine:  “It appears many of the factors affecting everyone in the collision industry – including technician staffing, ever-changing parts availabilities, new and used vehicle pricing, inflationary pressures, and new claims processes – are becoming prevalent. Ontario saw the largest increase of average billed days for Canada at 18.3 (up 7.2 days from 11.1 in 2021 Q2)”.

Read the full article from Canadian Underwriter magazine.

The content in this article is for information purposes only and is not intended to be relied upon as professional or expert advice.
This article was originally posted on

Read more posts

Filtering by: 
Tag
click to clear this filter
Insurance Tips For Newlyweds

Insurance Tips For Newlyweds

Whether you've lived with your new spouse for years or you've just moved into your first home together, make sure you've checked these to-dos off your list.

Read post
Should You Increase Your Loss of Use Coverage?

Should You Increase Your Loss of Use Coverage?

Loss of use or transportation replacement coverage helps cover the cost of alternate transportation if your vehicle is involved in a covered claim. It is an important additional insurance coverage that many people neglect to carry.

Read post
Carjacking: How To Protect Yourself

Carjacking: How To Protect Yourself

Across Canada, rates of reported carjackings are rising. Stay diligent and take extra measures to protect yourself, when parked and when on the road by knowing what puts you at greater risk of experiencing a carjacking.

Read post
What Happens If Your Property Is Underinsured?

What Happens If Your Property Is Underinsured?

To avoid being underinsured is to be certain that you are appropriately covered for your home and your contents.

Read post
7 Water Safety Tips For The Summer

7 Water Safety Tips For The Summer

Whether you're headed up to the cottage or planning a pool party, knowing some basic water safety tips can help keep you and your fellow swimmers out of trouble.

Read post
Learn How To Protect Yourself From Vehicle Theft

Learn How To Protect Yourself From Vehicle Theft

In 2021, losses stemming from vehicle theft rose over 20% from the previous year. While vehicle thefts have increased, there are fewer vehicles that are being recovered after they’ve been stolen.

Read post
How To Prevent Fires On Your Property

How To Prevent Fires On Your Property

There's no place like home — so it makes sense to protect yours as best you can. Safeguarding your home against fire is a good place to start, but it's important to do the same for the rest of your property, including your yard.

Read post
Tree Maintenance and Care

Tree Maintenance and Care

The trees in your yard can enhance your property, provide shade and offer abundant environmental benefits. However, trees can also pose a safety hazard to your family and your home if they are not properly inspected and maintained.

Read post
What Is CAA MyPace™ - Pay-As-You-Go Insurance?

What Is CAA MyPace™ - Pay-As-You-Go Insurance?

There are many options out there for auto insurance. One option that you may not be aware of is the CAA MyPace, a pay-as-you-go insurance payment program.

Read post
5 little-known facts about seasonal property insurance

5 little-known facts about seasonal property insurance

When it comes to seasonal property insurance, it's about more than their physical differences. Take note of these five little-known facts about seasonal property insurance coverage and talk to your broker about what is (and what isn't) covered in your policy.

Read post
Save the Stress: Sump Pump Basics

Save the Stress: Sump Pump Basics

Understanding how your sump pump works and how to maintain it is an easy way to prevent water damage in your home. This post covers what a sump pump does and how to maintain it.

Read post
How to protect your car from catalytic converter theft

How to protect your car from catalytic converter theft

Cases of catalytic converter theft are increasing across Canada. Find out everything you need to know about catalytic converter theft and learn how to protect your car.

Read post
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get the right insurance

Tell us what's important to you.
We'll help you get the right insurance at the right price.

Or call 1-800-653-1924