Rental Car Reimbursement Coverage

What happens when your vehicle has to be repaired after an insured damage and you need to rent another car? People often ask who pays for the rental costs? Rental car reimbursement coverage is designed to pay for cost of rentals during a period in which your own automobile cannot be used due to damages arising from any of the insured perils.

Somehow many policyholders assume that they will get a courtesy car free of charge when theirs is in the garage for repairs paid by insurance. That is probably because many drivers don’t think much about how much auto insurance is needed? Suddenly they need a rental car after an accident or other damages to own car and they expect the insurer to pay for it. They believe that their insurer should cover the costs since their automobile is in the body shop and not usable.

Does My Auto Insurance Include Rental Reimbursement?

When you buy full coverage car insurance do rental reimbursement coverage come with it as well? Or do you need to ask for it to be included? Some insurers sell standard auto insurance with rental car coverage because they want to provide a more comprehensive policy or attract more customers by offering better coverage. But for cost reasons many companies leave this to choice. The more coverage auto insurers add to a policy package the higher the premiums get.

Rental Reimbursement is a separate cover and usually additional premium charged for it. Unless it is added and premium paid you will not receive any compensation to cover the cost of any car you rented because of an insured damage to your vehicle.

This coverage is usually around $50 extra and pays for around $30 per day and for about 30 days. This is another reason people may end up paying more out of the pocket. This coverage may not be enough for the cars rented. Either renting a vehicle costs more daily or it is required longer than the period allowed. However, there has got to be some sort of limits. Otherwise, it becomes very hard to price a policy and costs may have to increase to accommodate excessive spending by some policyholders.

Many people rent cars often and pay for it comfortably out of pocket that they don’t feel they need coverage for car rentals due to accidents. They’d rather pay as little as possible for insuring their automobiles and pay for rental themselves if they ever face such a situation.

That is why very cheap car insurance no deposit may be more attractive to some drivers rather than a policy with bells and whistles. Good drivers may not be keen to load up their policies and increase their premiums. Therefore, they may leave a cover out when they feel they can pay for it on their own.

Regardless of having rental reimbursement cover or not, your insurer may extend your existing coverage to a rental car that will replace your car while it is being repaired. So, you should check with your insurer before buying insurance from the rental company or anyone else. 

Policies, insurers and policyholders are all different. Buying auto insurance coverage is like match making. You match the best policy and insurance company for your circumstances. What you want to be insured for can be totally different from what your friend wants and prepared to pay for. The best advice would be to write down what you want your minimum coverage to include and try to at least buy those. If you can buy more within your budget it is a bonus.

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