Will car insurance cover loss of income?

Imagine you’re stranded due to car trouble. You’re on the side of the road, and frantically explaining to your client that you won’t manage to meet their looming deadline. This means you won’t get paid for your current project, and you may even lose them as a client.

Under these – or similar – circumstances, what kind of role will your car insurance play? We answer this question, and consider other ways your insurer will support you during times like these.

Tip: It’s a huge risk to drive around without car insurance. Get a quote today.

Will your car insurance kick in?

Glenn Anderson, general manager of Dotsure, says that personal lines insurance, which typically covers individuals against loss, differs vastly.

“If your policy specifically stipulates that you’re covered for loss of income, then it will be covered, provided that the claim meets the relevant criteria,” says Anderson.

However, he explains that this is not something you can expect to find as a standard benefit on an ordinary car insurance policy.

Caron Whitfield, head of distribution and marketing at the Apio Group, says car insurance is usually only applicable to sudden and unforeseen accidental damage to a car, such as an accident or theft.

READ MORE: How to get the cheapest car insurance deal

How will your car insurance assist you?

Unless you have a high tier insurance policy, loss of income cannot form part of your claim. Either way, it’s important to know what else your insurer might cover, and how it could help you in this situation.

“Keeping their vehicle in good working order is the responsibility of every motorist, but we understand that breakdowns do happen,” says Whitfield.

“Emergency roadside assistance is normally attached to comprehensive motor policies. A toll-free number can usually be contacted at any hour, and the team will assist with towing, flat batteries or tyres, and other minor roadside incidents,” she explains.

On top of this, many insurers will supply a temporary car to assist you with your day-to-day travel needs until your car has been fixed. Contact your insurer directly to find out whether this is part of your policy.

According to Christiaan Steyn, head of MiWay Blink, this is called “car hire” on most insurance policies, and it’s usually an optional item at an additional premium.

“The reason for this is that there are multiple options to suit the needs of different people and each comes at a different cost,” says Steyn.

He explains that the first decision you need to make is what type of rental vehicle you would need. This ranges from an entry-level manual hatchback to an SUV or bakkie – it all depends on the number of people you tend to transport and the job that you do.

“The second decision you need to make regards how long you may need a rental vehicle in the event that your vehicle is damaged, written-off, or stolen,” says Steyn.

“You could choose the shortest period – let’s say 10 days – which at least sorts you out for the initial period while your car is in for repairs. This will give you time to make alternative transport arrangements should your vehicle not be repaired by day 10,” he explains.

Steyn adds that the premium you pay for car hire depends on the combination of these two choices. Obviously, the more expensive the rental car option you choose and the longer the period of car hire cover sought, the higher the premium is going to be.

If you’re not satisfied with the benefits on your current car insurance, get a quote and compare.