What Does Rental Car Reimbursement Coverage Do?
<p>Rental car reimbursement coverage covers renting a car as a substitute for your vehicle when it is disabled or is being repaired after a covered accident. Daily rental allowances or limits are subject to the terms of your car insurance policy.</p>
<p>Rental car reimbursement only pays for your rental car costs if the repair work is being done due to a covered loss. If your car breaks down or has mechanical issues that are unrelated to a covered accident, then rental reimbursement coverage cannot be used. Rental reimbursement coverage also does not pay for a pleasure rental vehicle.</p>
<p>Rental car reimbursement coverage will typically only pay up to a certain daily limit. Your policy will list the daily limit amount, usually $25 to $30, and total maximum limit, typically around $450 to $500. </p>
<p><strong>Is rental car reimbursement coverage mandatory?</strong></p>
<p>No. Rental car reimbursement is an optional coverage.</p>
<p><strong>What happens if I don’t have rental car reimbursement coverage?</strong></p>
<p>If you don’t carry this coverage, you may be without transportation or have to pay out-of-pocket for a rental car if your car is damaged in an accident where you are at-fault. Also, if another driver is at-fault but uninsured, underinsured or their policy doesn’t cover a rental car, you may also be without transportation or have to pay personally for a rental car while your car is repaired. </p>
<p>If you have an extra vehicle at your residence that you can use while one is being repaired due to a car accident, then rental car reimbursement coverage may be unnecessary.</p>
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