Many people may not realize that they may need another vehicle if theirs has to be repaired after damage and therefore not sure what happens then. You may have heard that people get given a curtesy car or told to hire one and it will be paid. Rental car reimbursement coverage is designed to pay for costs of a replacement vehicle during a period in which your own automobile cannot be used due to damages arising from any of the insured perils.
Somehow many motorists assume that they will get a courtesy car free of charge when theirs is in the garage for such repairs. That is probably because many drivers don’t think that far ahead but they heard things along the lines before. Suddenly they need to hire a car after an accident or other damages to own car and they expect the insurer to pay for it. They believe that is what should happen since their automobile is in the body shop and not usable.
Does My Auto Insurance Include Rental Reimbursement?
So, does it come with it automatically or do you need to ask for it to be included when you buy full coverage? Some carriers sell standard policies with rental car coverage because they want to provide a more comprehensive package or attract more customers by offering better protection. But for cost reasons many companies leave this to choice because the more is added the higher premiums get and some people may not need it.
Rental Reimbursement is a separate cover and usually additional premium charged for it. Unless you have it you will not receive any compensation towards the cost of any hire car in the above-described circumstances.
It 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 spending more out of pocket because its provisions are limited and may not be enough. Either its daily cost is more 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 and premiums 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 this extra arrangement. They’d rather spend as little as possible for now and deal with it if they ever face such a situation. It is not a financially ruining expense after all.
It may be cost effective to be selective about the risks you want to transfer. Many people prefer to insure the types of losses they cannot handle on their own and leave the rest out. Not everyone is keen on policies that come with bells and whistles. Good drivers may not be keen to load them up, as it would increase premiums. Therefore, they may leave something out when they feel they can pay for it out of pocket, if necessary.
Regardless of having rental reimbursement cover or not, vehicle insurers often offer the same protection for the replacement car while the listed one is being repaired. Also, some policies extend to hire cars in any case anyway. So, you should check with them before buying insurance from the rental company or anyone else. You might already have it.
Another point to remember is that some motorists may have another automobile to their disposal one way or another and therefore aren’t worried about any of these and certainly not willing to spare any money for it.
Buying coverage is like match making. You match the best policy and company for your circumstances. What you want can be totally different from what a friend wants and prepared to spend for. The best advice would be to write down the minimum requirements and try to at least buy those. If you can have more within your budget it is a bonus.