Rental car reimbursement covers the cost of transportation (rental car) while your car is being repaired. You can include it in your auto insurance policy only if you have already purchased collision or comprehensive insurance on your policy.
Here’s some things to consider before buying rental car reimbursement:
Transportation Expenses
If you don’t want to rent a car, some car insurance companies will compensate you with transportation costs like Uber or public transportation.
No Deductible
Rental Reimbursement won’t subtract from your claims. Instead, you will have a deductible from your collision and comprehensive insurance policy.
Auto insurance and Rental Company Partnership
Some auto insurance companies have partnerships with car rental companies. In that case, your auto insurance company will pay the bill to the rental company if you have an accident. Because car insurance companies rent so many cars, most often they get a lower cost than you could get on your own, meaning you can get a nicer vehicle or have it for longer than renting on your own.
Selecting a Rental Company Yourself
Your auto insurance company will offer to set you up with a partnered rental company but you are always able to select any provider that can offer you the services. But, if you use your own selected company and they aren’t connected to your insurance company, then you will likely need to pay for the rental car on your own and submit receipts for reimbursement. You’ll need to keep all the documents necessary to file the claim and after checking them against your policy coverage, then your auto insurance company will provide you reimbursement.
Rental Reimbursement May Not be Available
Sometimes Rental Reimbursement policy doesn’t apply to your car, specifically if you have a vintage or luxury car.
The Difference Between Rental Car Insurance and Rental Reimbursement
Rental car reimbursement is not to be confused with Rental Car Insurance because the latter will apply to the car you’ll rent from a company while the former will reimburse you when your car is being repaired in the garage because of an insurance claim. Neither of these will provide you a car to drive if you experience a breakdown of your car. If it isn’t related to an accident or covered insurance claim, your insurance policy cannot provide you with a rental car.
What Will Rental Car Reimbursement Not Cover?
There are limitations to what the reimbursement will cover and what it will not. For your ease we have discussed them below:
Daily Limit
It won’t provide you coverage if your daily rental limit will exceed the reimbursement policy limit. In that case, you’ll have to pay the difference. For example, if you are paying $40 daily to the rental company and your Rental car reimbursement limit is $1200 for 30 days. Then your insurer will only pay you up to $1200 and not more than that.
It would be wise to check around for various rental companies because the nearest one might be offering an expensive policy. So the best way would be to select a rental company for which you will have to pay less rent per day.
Gas or mileage coverage
While this policy will cover your transportation costs it won’t cover the gas, fuel costs, or the security deposit required by the rental company.
Routine repair
Rental car reimbursement does not apply to the routine maintenance of your car or if you rent a car for vacation purposes.
How much will it cost you to buy Rental car reimbursement?
Although the Rental car reimbursement coverage type and limit will depend upon company, state, or country, the average cost can range between $20 and $100 every six month, or between $2 and $12 per month.
If you don’t have Rental car reimbursement added to your auto car insurance and wish to purchase it then it would be wise to look around and compare the rates given by various insurance companies. That way you’ll be able to choose the best policy according to your needs and budget.
Rental Reimbursement FAQS:
How to get Rental car reimbursement from the at-fault driver’s insurance company?
If you want to claim reimbursement from the at-fault driver’s insurer then you need to file a police report and get the contact and information of the driver. After documenting the whole incident you will be able to file the claim against the driver’s liability insurance. In addition, the claim will be for both, the cost of your car repair and the rent for hiring a car.
Do I have to pay a deductible if it is not included in my auto insurance policy?
Usually, auto insurance companies include a deductible but if it is not included then you would have to pay it. It is recommended to check the auto insurance company policy before purchasing it.
Can I purchase a Rental car reimbursement policy without a non-collision policy?
Typically, the insurance company will require you to purchase a Collision & Comprehensive plan first, before buying the Rental car reimbursement policy. Because they want to be sure that you are well-covered in the circumstance of an accident happening.
What if the at-fault driver denies his/her mistake?
If the driver raises a dispute against your claim and refuses to accept the police report then you need to ask your insurance company for the rental cost. If you’ve already got the Rental Reimbursement coverage, and the other driver is later found to be at fault then your insurer can claim the reimbursement from the driver’s insurance company.
