Rental car reimbursement coverage
The last time there was a small accident in my family, we recognized the value of rental car reimbursement coverage.
I am fortunate due to the fact that no one was hurt; other than the physical damage to our vehicle and minimal damage to the other vehicle – it was not a big loss. However, one area that the loss can be great is the loss of utility value during the period of not using a vehicle. For us, luckily we had two vehicles so we were able to use the second vehicle, but for those of you who only have one vehicle per family or cannot afford to be without both cars… pay attention.
Rental car reimbursement coverage is a great value. In the event a vehicle gets damaged in an accident and needs to be repaired it can take weeks or in some situations even longer to repair that vehicle.
How long can you go without one car?
Again, for our scenario having two cars was helpful and it was not an issue – we could minimize driving, shift schedules, walk, use public transportation etc. However, depending upon where are you live this might not be an option and how long could you adjust your life to fit the one car lifestyle.
About the coverage
With auto accident rental car reimbursement, insurance carriers offer reimbursement for the cost of the rental of a vehicle while yours is inoperable or is being repaired from damage due to a valid comprehensive or collision coverage claim.
For example, you may need to rent a car if your own car has been damaged:
- In a car accident.
- By theft or vandalism.
- By severe weather.
How it works
The limit per claim might be a maximum dollar amount or a maximum number of days of coverage.
For example, your rental reimbursement coverage may have a limit of $25 per day or $750 per accident. This means that your insurance policy will only pay $25 per day for a rental vehicle, and that coverage will stop once you’ve hit the $750 limit.
You are generally allowed to rent a vehicle that is similar to the one that is being repaired when you’re using rental reimbursement coverage.
However, if you’re expecting the repairs to be time-consuming, you may want to choose a lower-cost vehicle in order to ensure that your rental reimbursement coverage does not run out before your vehicle has been repaired.
Expect rental reimbursement coverage to add $2 to $15 per month to the cost of your insurance, depending in part on the level of coverage on your policy.
The cost for rental reimbursement coverage will vary according to your auto insurance company and the level of protection you select. The coverage is usually fairly inexpensive.
Think about how difficult it would be for your normal life without a rental car or not having a car to travel to/from supermarkets or to/from doctors visits. That is why I think this is one of the most undervalued coverages that insurance companies offer, only those who asked and have actually had a claim will know the value of this coverage.
But trust me when I tell you it is nice to know for the price of the rental reimbursement coverage that you have this access to an a replacement vehicle during the time your car is being repaired. This is an area for InsuranceSharks out there looking to save a couple dollars (who don’t need this coverage to save a little bit).
However, think about it carefully and consider the fact that sometimes the value you get from the coverage is better than the few dollars you’ll save upfront (especially in the event that you need it). Also keep in mind, depending where you live the costs associated with a rental car can be steep.
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