What does 'loss of use coverage' provide for the policyholder?

Loss of use coverage is designed to compensate the policyholder for the inability to use their insured vehicle due to a covered event, such as an accident or theft. This type of coverage can help cover the costs incurred from renting a vehicle or other transportation expenses while the insured vehicle is being repaired or replaced. It is particularly valuable because it acknowledges that the policyholder may still have transportation needs even though their vehicle is not available for use. Consequently, the provision of compensation for loss of use addresses the inconvenience and financial strain that can occur when a vehicle is temporarily out of service.