After a car accident, life can quickly become stressful—especially if your vehicle is in the repair shop for days or even weeks. During this time, most people still need reliable transportation to work, school, or family activities. This is where loss of use coverage becomes an essential add-on to your auto insurance policy.
In this guide, we explain what loss of use coverage means, how it works, who needs it, and how much protection you should consider.
What Is Loss of Use Coverage?
Loss of use coverage—called OPCF 20 in Ontario and QEF 20 in Quebec—is an optional auto insurance endorsement. It covers the cost of temporary transportation when your car is unusable due to a covered incident, such as an accident.
This coverage typically pays for:
- Rental car expenses while your vehicle is being repaired
- Taxi fares, rideshares, or public transit costs
However, policies include limits such as daily maximums or overall caps on how long the coverage lasts. Protection usually ends once your vehicle is repaired, replaced, or declared a total loss.
Do You Really Need Loss of Use Coverage?
Many drivers debate whether to add this protection. To decide, ask yourself:
- How much do I rely on my vehicle daily?
- Do I have convenient access to public transit or alternative transportation?
- Could I afford out-of-pocket costs if my car is in the shop for one or two weeks?
Loss of use coverage is especially valuable for:
- Drivers who commute daily for work or school
- Families who need dependable transportation for children and activities
- Residents in areas with limited public transit options
- High-mileage drivers who face a greater chance of needing repairs
Cost of Adding Loss of Use Coverage
Premiums for this add-on are relatively low compared to potential out-of-pocket expenses. Rates vary by insurer, province, driving history, and vehicle type.
For example:
- Ontario: Approx. $144 with coverage vs $153 without
- Quebec: Approx. $99 with coverage vs $92 without
Though costs differ by provider, most policies range from $1,500 to $2,500 in coverage limits, with higher options available for those who want extra protection.
How Does Loss of Use Coverage Work in Canada?
- Add it in advance: You must include it in your policy before an accident—retroactive coverage is not available.
- Covered incident: A collision or other insured event renders your car unusable.
- File a claim: Notify your insurer immediately and provide supporting documents.
- Receive alternate transportation: The insurer arranges a rental car or reimburses expenses such as taxis or transit fares.
- Submit receipts: Keep all records for verification.
- Coverage ends: Once your car is repaired, replaced, or the coverage cap is reached.
Conclusion
Loss of use coverage may seem like a small addition, but it can save you hundreds of dollars and prevent major inconvenience after an accident. For most Canadians, especially commuters and families, this optional protection is well worth the modest premium increase.
FAQ
What does loss of use coverage include?
It covers rental cars, taxis, rideshares, or public transit costs when your vehicle is being repaired after a covered incident.
How much does it cost to add loss of use coverage?
Premiums vary but usually add only a small amount to your policy. Coverage typically provides $1,500–$2,500 in benefits.
Is loss of use coverage mandatory in Canada?
No. It is optional and must be added to your auto insurance policy.
Does coverage apply if my car is a total loss?
It may apply until you receive a settlement, but protection usually ends once a total loss is declared.
Who benefits most from this coverage?
Daily commuters, families, and drivers in areas without public transit gain the most value from this protection.