Rental reimbursement helps cover the cost of renting a car while the vehicle is being repaired after a covered accident. It's an option with car insurance policies that is quite affordable and might be worthwhile for some drivers. Car insurance will cover rental costs after you file and approve a qualifying claim. In these cases, you must include rent reimbursement in your policy before the accident in order for there to be coverage.
If you are not at fault, the other driver's property damage liability insurance will pay for the rental of the vehicle while it is being repaired. If your car breaks down and the damage was due to a covered loss, your car insurance will pay for temporary transportation costs as long as you have rental reimbursement coverage, which is usually a supplemental coverage option. Rental reimbursement coverage will cover the cost of a replacement rental car while yours is being repaired after a covered claim. Do you have coverage for uninsured motorists? If you do, when the accident occurred, you might be lucky.
The craziest thing is that your own insurance company can DEFEND the claim. That's right, even if you have coverage for uninsured motorists, you have to beat your insurance company. So how do you recover the money lost from time off work, medical bills, and pain and suffering in that situation? In most cases, the insurance company will pay for the rental car until the old vehicle is repaired, unless you delay the repair process. If your personal car is insured and you pay your rent with a credit card, you can probably skip the optional coverage offered at the rental counter.
Car rental companies generally only offer minimum liability coverage, so if you don't have personal insurance, you'll probably want to purchase additional rental car insurance through the rental company. If you choose an affiliate partner through your insurer, the car rental company can bill the insurer directly. If you don't have either type of coverage, you can take out personal accident insurance through the car rental company. It's also worth noting that even if your standard auto insurance policy only includes liability coverage, you may be protected in other ways.
You have the right to choose any car rental service, whether it's a subsidiary of your insurance company or an independent rental agency. If your car rental is covered by your standard insurance and you're willing to pay your normal deductible, it's okay if you don't have separate rental car insurance. All insurance products are governed by the terms of the applicable insurance policy, and all related decisions (such as coverage approval, premiums, fees and charges) and policy obligations are the sole responsibility of the insurance insurer. If you are left without a vehicle due to an accident caused by someone else, your property damage liability insurance should step in to cover the cost of your rental car.
In addition, if you plan to use a credit card as coverage, make sure you know the exclusions and the steps you must take to apply for coverage, such as refusing the car rental company's insurance options. It won't cover you if your car has suffered a mechanical breakdown, or if you're taking a personal or business trip and need a car while you're away. If someone else is at fault for an accident, you can use your own coverage right away and then have your insurance company recover the cost of the rental car from the at-fault party or your insurance company once the fault has been determined. In general, rental reimbursement coverage is worthwhile if you think you're going to have a car accident and need a rental car for years to come.
Progressive also offers rental vehicle reimbursement coverage, which helps pay the cost of a rental car while your personal vehicle is being repaired for a covered claim...