WATCH YOUR LOSS OF USE CLAIM
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INSURANCE coverage is topical and it may be as well to look at one aspect of it which is important to the fleet user: "Loss of use". If you are covered for loss of use you may believe that you can dash off and replace your car with one of a similar type when you are involved in an accident. You should proceed with caution.
Earlier this month a company director whose car—a £2,250 Jensen (1966) was damaged in a crash lost a claim for E410. The Jensen took 71 weeks to repair and during the period the director used a hired Rover 100 and a 3.8 Jaguar. The director claimed he wanted a car with the same prestige value. Three appeal court judges took a different view. Lord Justice Sellars said that a Ford Zephyr would have been a reasonable equivalent car to hire and this would have cost £185 hire charges for the same period.
A loss of use clause seldom states specifically what you are entitled to in replacement but as a result of this judgement fleet operators would be well advised to consult their insurers before hiring.