Rental reimbursement coverage pays for a replacement car while yours is in the shop after an accident.
Rent-a-car reimbursement is designed to allow you to move even if your primary vehicle isn’t. This coverage pays for the cost of a rental car while your car is in the shop, even if you’re at fault in the event of a rental car accident.
Most auto insurance policies don’t include rental car reimbursement. You’ll need to pay a fee to increase the coverage. Once you have it, your collision or comprehensive insurance will cover you for any incident.
What is the process of rental reimbursement?
The driver who caused the accident typically pays for the damages. Although it is possible for someone to hit your car and then send it to the shop for repairs, it is not guaranteed.
Similarly, if the accident is your fault, your liability insurance is going to pay for the other driver’s rental car. If you don’t have collision coverage, then you will be responsible for the repair of your car and renting a vehicle while you wait.
Collision coverage covers the cost of your car’s repairs, even if you are at fault for an accident. Comprehensive coverage is a cousin to collision coverage. It covers things like theft and floods.
These policy options allow you to add rental reimbursement coverage. Since the other driver pays for your rental if it’s their fault, rental reimbursement only comes into play when it’s not another driver’s fault, and you’ve got collision or comprehensive coverage.
If your car is being repaired and your insurance pays the bill, your rental car will be covered as well.
What happens if there is disagreement?
The situation could get more complicated if you and the other driver disagree with the police report following an accident. You can contact your insurance company to arrange a rental if you have rental reimbursement coverage. Your insurance company will pay for the rental if you are found to be responsible.
You will have to wait until you have rental car insurance to be able to claim the rental car cost back. You will be responsible for any rental charges if the accident is your fault. You can work with the insurance company of the other driver to recover the rental car money that you have already spent.
What coverage do you need?
Rental car coverage is like other types of insurance. There are limits. Many policies have a maximum daily and total claim amount. Your insurance company will pay the daily amount for your rental car. Anything more than that will be charged to your account.
The maximum amount you are eligible to be reimbursed after an accident is the total per claim amount. These could be a dollar amount ($800) or a period limit (30 days). These max limits can be very costly if you are in need of a car for a long time. Some insurance companies offer multiple limits options, while others only have one.
Take a look at the rates in your area to determine how much coverage you will need. Also, consider how important it is to have a car. You may not require coverage for many days if you are a weekend driver. You’ll need enough rental reimbursement coverage to ensure reliable commuting if your car takes you to work and back five days per week.
What is the cost of rental car reimbursement insurance
Rental car coverage costs can range from $35 to $60 per annum depending on the length of your rental period and the type of car you drive. You will need more coverage the more you drive.
Your location is also important. Insurance companies may negotiate lower rates with rental car providers than you, but there might not be one near you. If your car insurance company only works with Hertz, but you live near Enterprise locations, it could lead to higher rental prices.
Rental car coverage is only available for accidents that you have coverage for. If you don’t have comprehensive or collision coverage, rental car reimbursement will not work. Shopping around to compare car insurance rates is the only way to make sure you’ve got the best policy for you at the best possible rate.
