Last updated 2021-05-01

Confirm eligibility for Loss of Use coverage

The claims representative reviews the customer’s loss details, insurance policy, personal needs, and other applicable factors when determining if there is eligible Loss of Use (LOU) coverage.

Prerequisites

The customer has access to
  • first party coverage from
    • Basic Vehicle Damage coverage, for claims with a date of loss (DOL) on May 1, 2021, or later
    • Own Damage Coverage
    • RoadStar
    • Roadside Plus
    • optional LOU, or
  • third party coverage against an
    • ICBC insured responsible third party, for claims with a DOL on April 30, 2021, or earlier, or
    • out of province (OOP) responsible third party, for claims with a DOL on May 1, 2021, or later, when the crash occurs in a tort jurisdiction.

When this applies

The claims representative is confirming eligibility for LOU coverage, other than LOU due to theft provided under Section 5.13, Loss of Use due to theft of the Optional Policy and the customer requires alternate transportation while their own vehicle is being
  • towed
  • repaired, or
  • otherwise handled by ICBC.

Procedure

  1. Determine if the customer
    • is repairing their vehicle or if the vehicle is non-driveable, and
    • has the applicable LOU coverage.
    If the customer is … Then …
    not repairing their vehicle LOU coverage does not apply.
    • repairing their vehicle, or their vehicle is non-driveable due to crash related damage, and
    • using coverages, such as
      • Own Damage coverage:
        • Collision
        • Comprehensive, or
        • Specified Perils, or
      • RoadStar
      • Roadside Plus, or
      • standalone Loss of Use.
    		 proceed to step 2 to determine if LOU coverage applies.
    • not reponsible for the crash, and
    • repairing their vehicle, or their vehicle is non-driveable due to crash related damage, and has a
      • Basic Vehicle Damage coverage claim, or
      • Third Party Liability (TPL) claim with a DOL on April 30, 2021, or earlier

    proceed to step 3.

    Non-responsible customers are eligible for LOU coverage under Basic Vehicle Damage coverage or TPL.
  2. Determine if the claim will exceed the customer’s applicable Own Damage coverage deductible.
    If the customer … And the … Then …
    does not have a completed estimate

    damage description suggests the claim will not exceed the deductible

    Example: A customer with a scuffed bumper and a $2,500 deductible will not likely have a claim that exceeds their deductible.

    		 LOU coverage does not apply.
    damage description suggests the claim will exceed the deductible proceed to step 3 to determine if LOU coverage applies.
    has a completed estimate
    • estimate is less than the deductible, and
    • damage description suggests the claim will not exceed the deductible
    		 advise the customer that they are not eligible for a LOU claim as the estimate and damage description in less than their deductible.
    • estimate is less than the deductible, and
    • damage description suggests the claim will exceed the deductible
    		 proceed to step 3 to determine if LOU coverage applies.
    estimate is greater than the deductible
    Note: With total theft claims, damage cannot be determined until the vehicle is recovered, so LOU coverage may be allowed even if the customer does not repair their vehicle. The 72-hour waiting period for LOU due to theft does not apply when the customer has LOU coverage via either RoadStar, Roadside Plus, or standalone LOU.
  3. Inform the customer
    • of requirements rental vehicle providers may have, and
    • that the rental vehicle provider’s requirements may affect their eligibility for a rental vehicle.
    If the rental vehicle provider … Then …
    has an age limit, such as the customer must be 21 years old or older

    an additional person may be needed on the rental agreement.

    Note: If there is no additional person that can be added to the rental agreement, the customer may be ineligible for a rental vehicle.
    requires a credit card or cash deposit

    the customer will need to arrange for the deposit.

    Note: If there is no one who can assist with the credit card or cash deposit, then the customer may be ineligible for a rental vehicle.
    requires rental vehicle insurance

    customers without Own Damage coverage need to buy rental vehicle insurance.

    Note: Insurance for the rental vehicle is not reimbursed by ICBC. If the customer chooses not to get insurance, they may
    • be ineligible for a rental vehicle
    • have to purchase the rental vehicle provider's loss damage waiver, or
    • be uninsured in the event of damage to the rental vehicle.
  4. Inform the customer
    • that their LOU coverage can run out before the claim is finalized, and
    • to use their LOU coverage minimally early in the claim.
    If the customer is … Then …
    using taxis and public transportation

    expenses incurred above daily limits are not reimbursed.

    Note: Taxi, public transportation, and rental vehicles are subject to the same daily and total limits.
    relying on using the total limit of coverage

    expenses incurred after the claim is completed are not reimbursed.

    Note: LOU coverage ends when
    • the customer's vehicle is repaired
    • the claim is settled, or
    • an offer to settle is made.
      Note: LOU coverage is extended for up to three days beyond when a total loss is settled to allow the customer to purchase a replacement vehicle.

Results

The claims representative confirms if the customer is eligible for LOU coverage, and may choose to
  • authorize direct billing, or
  • review receipts and invoices for consideration of reimbursement.
Parent topic: Loss of Use priority of payment