Rental reimbursement coverage does not cover gas costs, mileage, or any security deposit required by the car rental company. It can only be used if you need a rental car while your car is in the workshop being repaired for a problem covered by your car insurance policy. You can rent a car that costs more than the insurance limit, but you'll have to pay the difference if the daily rate or total limit exceeds the policy limits. With so many options for car insurance companies, it can be difficult to know where to start to find the right car insurance.
If your car is being repaired because of an accident insurance claim, rental reimbursement coverage pays for transportation expenses, such as renting a car or public transportation fares. If you don't have wiggle room in your budget to pay for this additional expense, you might consider adding rental reimbursement insurance to your car insurance policy. Rental reimbursement insurance is coverage that you add to your personal auto insurance policy and that pays the rent if your car is being repaired for a problem that is covered by the policy. If you have car insurance with Travelers and use a preferred car rental company, they can bill Travelers directly for your rental car.
Car insurance with rental reimbursement provides coverage for obtaining a rental car if your vehicle is damaged due to a problem covered by your policy and needs repairs. If someone else hit your vehicle, you can file a claim against their liability insurance both for repairs to your car and for renting a car during repairs. This type of coverage can usually only be added when you have comprehensive and collision coverage in your car insurance policy. Next, we look at how rental reimbursement insurance works with your car insurance policy to see if it's worth adding to your policy.
Having a car accident is stressful enough as it is, but waiting nearly three weeks for your car to get back on the road only makes things worse. Rental reimbursement coverage generally only covers car rental or other transportation expenses when the car is being repaired after an accident or incident covered by insurance. Generally, the coverage of your personal auto insurance policy will transfer to that of a rental car, so you won't have to buy expensive insurance at the rental counter. However, if you don't need a rental car or public transportation if your car is in the garage, it's not worth adding coverage that you won't use.
If your travel insurance policy includes comprehensive or collision coverage, you may not need additional coverage from the car rental company.