No matter how good of a driver you are, chances are you’ll be responsible for an accident at some point. Whether it’s hitting a deer that jumps into the road, rear-ending someone during rush hour, or a more serious collision, accidents happen if you drive enough.
If you’re involved in an accident, your vehicle will likely need repairs. And if your car needs repairs, that means you’ll be stuck without a car for a while. Of course, being without a car is a hassle at best, and not feasible at worst. Most of the time, you’ll need to rent a vehicle, to make sure that you can still get to work, get to the grocery store, and all the other things that you use your vehicle for on a daily basis. Thankfully, that’s what rental reimbursement coverage is for.
What is rental reimbursement coverage?
Rental reimbursement coverage is an optional feature offered by car insurance companies. With rental reimbursement coverage, your auto insurance provider will pay for a rental car for you while your car is in the shop. Once your vehicle is repaired, you return the rental, and can go back to driving your car.
What exactly does rental reimbursement cover?
Rental reimbursement covers a rental vehicle for you any time that you are in an accident that your insurance also covers. In other words, if your insurance company is paying for your vehicle repairs, then they’ll also pay for your rental vehicle (assuming you have rental reimbursement coverage).
Different companies offer different details for their rental reimbursement coverage, but in general, the policy only covers a daily rental rate, and not the security deposit, gas, or a vehicle upgrade (though some policies will cover a rental in the same classification as the car being repaired).
Most car insurance providers will let you deal with renting a vehicle if you have a specific rental agency in mind. Then, you can file a reimbursement claim so that you can be repaid. However, car insurance companies have partnerships with rentals, so if you let them handle the process for you, they’ll pay for it directly.
Rental reimbursement coverage will pay for a rental up to a certain price per day, until a price limit is reached (or until your vehicle is repaired). The details of how much your rental reimbursement insurance will cover depend on your plan.
Many car insurance companies will also reimburse you for alternate forms of transportation, in lieu of a rental. For instance, if your plan covers up to $50 per day in rental reimbursement, your provider may be willing to reimburse you up to that much per day for rideshares, taxis, or public transportation, if you choose to use those methods while your car is in the shop.
How much does rental reimbursement coverage cost?
Rental reimbursement coverage is a very affordable addition to most insurance plans. With many providers, it’s only a few dollars a month extra to have rental reimbursement (though the price is obviously higher if you want more comprehensive rental reimbursement coverage). State Farm, for instance, offers multiple rental reimbursement coverage packages that are less than $2.00 per month.
Rental reimbursement coverage is an affordable addition to any car insurance plan, and it can really help you out should you be in an accident. Rental cars aren’t the cheapest thing in the world, so having your car in the shop for just a few days can potentially set you back quite a bit. With rental reimbursement coverage, you don’t need to worry about that.