What is "loss of use" coverage in auto insurance?

"Loss of use" coverage in auto insurance pertains specifically to situations where the insured vehicle is temporarily unavailable due to a covered loss, such as an accident. When a vehicle is in the shop for repairs resulting from an incident covered by the policy, this coverage compensates the policyholder for the cost of renting a substitute vehicle while their own vehicle is being repaired.

This type of coverage is designed to mitigate the inconvenience and financial burden that can arise when a vehicle is out of commission, allowing the insured to maintain mobility during the repair period. It's an important aspect of auto insurance, ensuring the insured can continue their daily activities with minimal disruption.

Other options do not specifically address the nature of coverage that "loss of use" entails. For instance, taxi services or emergency vehicle coverage are not part of this definition, and providing a replacement vehicle is a different type of coverage not associated specifically with loss of use.