“Loss of use” refers to the inconvenience and cost of not having access to your vehicle while it’s being repaired after an accident or damage claim. It’s typically covered as part of your insurance policy — especially with MPI or private providers — and helps cover your transportation needs during that time.
🚗 What “Loss of Use” Means in Insurance Terms:
When your car is in the shop due to a covered claim, you can’t use it. Loss of use coverage helps by paying for:
- Rental vehicle
- Public transportation
- Taxi or rideshare fares (in some cases)
So you’re not stranded while your vehicle’s being repaired or assessed.
📋 How It Works:
- You file a claim with MPI (or your insurer)
- If you’re eligible, loss of use coverage kicks in
- Your insurer will either:
- Arrange a rental vehicle directly, or
- Reimburse you for transit/taxi costs (up to a daily/total limit)
- Once repairs are complete or your car is deemed a total loss, the coverage ends
💡 Things to Know:
- You must be covered by MPI’s optional Loss of Use coverage (or similar through private insurance) — it’s not part of basic Autopac
- There’s usually a daily limit (e.g., $40/day) and maximum payout cap
- It’s only available if the loss is covered under your policy
- It doesn’t cover mechanical breakdowns or routine maintenance downtime
✅ Why It’s Worth It:
- You stay mobile while your car’s in the shop
- No out-of-pocket costs for a rental (up to your policy limit)
- It reduces the stress of being without a vehicle — especially for work or family needs
