7 Things To Know About Rental Car Coverage

After a crash, you have enough concerns to address. Getting back to work the next day should not be one of them.

We have all been in the place of arranging alternative transportation while your vehicle is in the shop and have faced depending on the situation a hassle. Rental reimbursement coverage can help alleviate the stress caused by an accident as well as save you money.

You need to know about the following before buying rental car reimbursement coverage:

1. It’s optional.

After an accident, reimbursable rental reimbursement does not automatically meet the minimum payment requirement. It may be added as an optional coverage. A lot of people have this misconception that their auto insurance automatically covers the cost of a replacement rental car. In reality, you'll have to make a selection and add it to your own policy.

2. There is a limit.

You will have a per-day and per-occurrence limit, such as with a 25 750 limit, your insurance company will pay a maximum of $25 per day and no more than $750 for each rental vehicle claim. Most insurance companies will give you a few payment options, permitting you to choose your limit to your liking.

3. Your vehicle must be in the shop due to a covered loss.

You can rely on the rental reimbursement plan if your car is in the shop after an event or other covered loss, not for maintenance or repair. So, if your vehicle is currently at the body shop after an accident, a rental car will be covered up to your limit. If your car is going to be maintained for service or you are borrowing a vehicle for a family trip, then rental reimbursement coverage would not apply.

4. You can use it right away.

If you report a claim to your insurance company and your car isn't drivable, you will be eligible for a rental car right away. Otherwise, you will be dealing with the other party's insurance company, and you may have to wait some time before they assess the claim and agree to cover the cost for a rental. Rental reimbursement insurance helps cut that wait time down.

5. No need to worry about additional insurance.

Generally speaking, when you have collision and comprehensive coverage in your insurance policy, your utility vehicle rental expenses will be covered up to the limits of your collision and comprehensive insurance coverage.

6. You may not need it at all.

If your automobile 's not drivable, rideshare services or public transportation are your go-to options for getting to your destination. In the event you want to remain protected against having to rent another service provider's vehicle, adding rideshare or public transportation coverage may help you.

7. It costs less than you might expect.

Reimbursement coverage for one year of rental expenses is usually less expensive than buying one day of rental cars.