Insurance glossary
Car hire cover
Also known as: courtesy car, car hire benefit, rental car cover, loan car
Quick definition
An add-on that funds a temporary replacement vehicle while your car is being repaired after a valid claim. Usually sold as a tier — a small hatchback for a set number of days — for a few rand a month.
Understanding Car hire cover
When a car is off the road for repairs after an accident, the practical problem is getting to work and running a household in the meantime. Car hire cover answers that by funding a rental for the repair period, typically capped at a class of vehicle (often a small hatchback) and a number of days (commonly up to 30). Higher tiers offer a larger vehicle or a longer period for a slightly higher premium.
Read two details carefully. First, the trigger: most policies provide the hire car only after a valid accident claim, and not always after a theft or while you wait for a write-off settlement — confirm which events qualify. Second, the class: the default hatchback may not suit a family that runs an SUV, so weigh the tier against your real needs.
For a single-car household, car hire cover is one of the higher-value small add-ons, because the alternative — paying for a rental out of pocket for two or three weeks — costs far more than the monthly premium ever will.
Definitions reviewed by the OneCompare editorial team. OneCompare (Pty) Ltd is an Authorised Financial Services Provider (FSP 55551).
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