Rethink Rental Reimbursement Coverage
Rental reimbursement coverage helps you pay for a rental car when your own car is being repaired after an accident or other loss, such as vandalism or a natural disaster. This coverage would undoubtedly be beneficial after an accident, but is it worth the extra charge every month? Let’s discuss the details of this coverage so that you can decide if it is worth it for you.
How does rental reimbursement work?
This coverage is an optional addition to your insurance policy. It will add an additional charge, typically a pretty low charge, to your premium.
If you add rental reimbursement coverage to your policy, there will be a daily limit. For example, your insurance company may pay up to $25 per day for your rental car. There may also be a per claim limit. Your insurance may cover $25 per day, up to $500 per claim. So if the insurance company has spent $500 on your rental car, but your own vehicle is still being repaired, you will have to start paying the full cost of the rental or turn the rental back in.
Depending on the cost of your rental car, your coverage may pay for the whole cost or just a large part of the cost. For example, if the cost of the car was $30 a day, you would have to pay $5 per day out of pocket, but if it were $22 per day, you would pay nothing. The only other out-of-pocket fee may be a security deposit through the rental company, but that should be returned to you when you return the car.
Pro Tip: The size of the vehicle you rent helps determine the cost per day. If you know your car is going to take several weeks to repair, get a smaller rental car to make your rental reimbursement coverage last longer.
When can I use rental reimbursement?
When you file a claim with your insurance company, they will ask you questions about the damage to your vehicle. If your car is damaged, and the claim is covered, your agent will check to see if you have rental reimbursement coverage on your policy.
If your car needs repairs but you are still able to drive it, you can still get a rental car after dropping your vehicle off at the repair shop. If your car is not functional, your insurance company will work with you to get it to the repair shop and get you a rental car. If your car is totaled, you can also qualify to get a rental car for a limited amount of time. You should start shopping for your new vehicle as soon as possible so that your rental reimbursement coverage does not run out and leave you without a car.
What if I do not get rental reimbursement?
Rental reimbursement is optional. Your premium will be slightly lower without this extra coverage, so you will save a bit of money every month without it.
However, if you get into an accident and your car is in the shop, chances are you will need a rental car anyway to get to work, run errands, take the kids to school, etc. Without rental car reimbursement, the cost of your rental car will come straight out of your pocket. Rental reimbursement relieves the financial and emotional stress that follows an accident or loss.
Ask yourself these questions: Do I have an extra car? Do I have a friend or family member who would be willing to drive me where I need to go? Is one of these options available to me for an extended period of time if necessary?
The extra fee per month will be minimal compared to out-of-pocket costs of a rental car or the inconvenience of being without a car at all. For more information about this coverage, contact an Infinity agent today at 1-800-INFINITY.
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