4 Things You Should Know About Rental Car Reimbursement Coverage

If it’s not bad enough that you just had a car accident, not only do you need to figure out what to do, but you also have to worry about how you are going to get around now.Be sure you are covered for your rental car when your car is out of commission from a car accident

  • Do you have another car you can use?
  • Can you borrow a car from a friend?
  • Will the repair shop have something for you?
  • Can you just go anywhere and get one?

If none of these options are feasible, then it sounds like you may need to get a rental car. Next question is usually, Do I need rental car insurance?

4 things you should know about rental car reimbursement coverage

Just like with any insurance, there are a lot of variables, so let us help you sort them out.

1 – There’s a limit

Almost everything that is covered on an insurance policy has a limit. It’s a great idea to know what your limit is, for everything.  However, for rental car reimbursement coverage, it is often listed for a max of 30 days and a specific dollar amount. It is helpful to know what those limits are beforehand.  For example, you may have coverage limits up to $30 per day then you have a max limit of $900.

2 – It has to be due to a covered loss

Your vehicle has to be in the shop because of a covered loss. So that’s just insurance lingo to say that you had a car accident and your auto insurance or the insurance of the other driver is paying to make repairs on your car.

If you have ever thought that you could use rental reimbursement because your car needs maintenance and it might take a while, you’re not alone. Many people think this, but it is not true.  So, if you need a new transmission because your car is older, you would have to pay for your own rental car. If you are going on a great vacation and you’ve decided to rent a car just know that your insurance won’t pay for that either.  These things are not covered under Rental Car Reimbursement coverage.

3 – There is good news – no extra is neededbe sure you use your rental reimbursement for a rental needed from an accident.

On a good note. If you are using your rental reimbursement coverage, you may not need additional insurance for that rental car.  Most of the time, if you have collision and comprehensive coverages on your auto insurance policy, it will transfer to the rental vehicle. So that’s helpful when you have to rent a car from the rental agency because you just had an accident #4, it might cost less than what you expect. More or less than $1 a day to cover the expense of not having to figure out how you are going to get around now that you don’t have a car, because your car is in the shop being repaired after an auto accident.

4 – You don’t have to get rental reimbursement coverage

You may consider not getting rental reimbursement coverage completely.  That might work well in situations like:

  • you have extra cars in your home that could be at your disposal
  • you have various friends or family that could lend you a car if you needed one for a short time
  • you are super comfortable with ride sharing and in an area where it is usually readily available
  • you live in an area where public transportation is everywhere, easy access and won’t be inconvenient to get where you need to be daily.

Keep in mind, that you would obviously have to pay for your options because you chose not to have Rental Reimbursement coverage, but maybe that’s the tradeoff that worked for you and your situation.

As always, Kicker Insures Me Agency understands that insurance can be confusing and we are happy to help explain the nuances of insurance to be sure you select the right coverage for your needs and situation.  Contact us or call/text us at (281) 487-9686 to help you.  You can always start your Free Quote here.

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