Brokers missing out if they don’t recommend ‘loss of use’ auto coverage: report

Canadian drivers are waiting an average of 15 days for collision-related repairs — and 44% are paying the cost of temporary car rentals themselves, since they don’t have auto insurance policy coverage for loss of use, says a new report by car rental agency Enterprise.

Loss of use auto insurance covers the cost of alternative transportation — such as rental cars, taxis, ridesharing or public transport — if drivers can’t use their own cars because they’re being repaired. Eligible claims may fall under an auto policy’s collision coverage or comprehensive coverage (for example, theft, fire or vandalism).

An optional add-on to a policy, loss of use coverage typically reimburses the driver for costs up to a daily limit and a total maximum amount listed in the insurance policy.

An average of two weeks without transportation during a repair is a long time. And yet, only just over half of Canadian drivers actually have loss of use coverage, the Enterprise white paper found.   

“Just 53% of customers with comprehensive auto insurance policies have rental reimbursement coverage, yet 44% of those without the coverage still chose to rent a vehicle during a recent claim,” say survey results in the white paper. “Meanwhile, 21% of customers without coverage say they have never heard of rental reimbursement, or their provider doesn’t offer it.”

Among the private auto insurance provinces in Canada, Alberta had the highest average number days drivers were without use of a vehicle during repairs, at 17 days in 2025 Q3. Ontario drivers averaged waiting 15.5 days for a repair, while Prince Edward Island ranked lowest at 12.5 days to wait for a car repair.

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If people hear about loss of use auto policy coverage, it’s usually from their insurance broker.   

“Insurance professionals play a vital part in helping clients understand the importance and benefits of rental reimbursement coverage, with 60% of the study’s respondents who have these policies reporting they learned about the benefits through their broker,” the Enterprise white paper states.

For brokers and insurers, telling drivers about the benefits of rental reimbursement coverage is well worth it, the study says.

Satisfaction levels about an insurer was “dramatically lower” among those drivers whose rental policies covered only a small portion of the cost. Thirty-three percent of respondents whose policies only covered a fraction of the temporary rental costs reported being very satisfied with their insurer, compared to 64% of customers whose rentals were fully covered.

Even drivers who rented without any loss of use insurance coverage at all were more satisfied than those who had policies covering half, or less than half, the cost of the rental.

Generally speaking, “the more out-of-pocket expenses a customer pays, and the more friction they encounter in carrying on with their day-to-day activities, the less satisfied they are with their insurance provider during a claim,” says Jennifer Everett, vice president at Enterprise Mobility.