Rental Reimbursement Coverage

What is rental reimbursement?

Rental reimbursement coverage pays for rental car costs, up to a pre-determined limit and for a pre-determined amount of time, that are incurred while your car is being worked on.

Rental reimbursement is considered an additional coverage item for your car insurance policy. It is rare for someone to purchase this policy without purchasing a larger, more comprehensive policy, at the same time.

The problem with rental reimbursement coverage

Usually, the amount that a provider offers for rental reimbursement coverage is about $15-20 per day. How many rental cars have you rented at that price? The other limitation is the number of days in which the insurance provider will offer this small sum, which is usually about 30 days. Most cars that are seriously damaged to the point that you would want assistance with the rental car costs take longer than 30 days to fix. Consider that the mechanic will not even be able to begin repairs until an insurance claims adjuster has come out to fully check the car. And as timely as they try to be, it does not always happen that way.

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Who needs rental reimbursement coverage?

Chances are you will not. Yes, it is a gamble, but the chances that you will be in an accident that will put your car in the shop for a long period of time are minimal. It is even less likely that that accident will be your fault. If the accident is caused by the other party, then it is their insurance company who will pay for your rental car costs.

How much rental reimbursement coverage should you buy?

If you choose to invest in this type of coverage, you should purchase the most they have to offer. The few extra dollars you will spend will be worth it should the need ever arise.

Does rental reimbursement coverage cover the cost of a rental anytime my car is in the shop?

No. Rental reimbursement coverage is only available when your car is damaged and in need of repair due to an accident that was your fault or another event that is covered by your insurance policy (for instance, a natural disaster).

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