Why Get Rental Reimbursement Coverage?

These are interesting times in lots of different ways.  Your insurance can help when things go sideways in life and try to take you off your planned path.  Understanding your coverage and making the right choices will help you avoid the old pitfalls as well as some new ones.  So let’s address the question at hand.

Help When You Need it the Most

One of the last things you want to worry about after an accident is how you’re going to get around without your car and how you’re going to pay for other transportation. Since an automobile policy doesn’t automatically cover the cost of a replacement rental car after an accident, rental reimbursement and towing coverage is an inexpensive insurance option that can help when you need it most.

Big Repair Backlogs

Two big factors that make this coverage more important than ever are the current labor shortages and the back-log in auto parts for auto body repair shops.  Auto body shops have developed unprecedented backlogs in their timeline to repair vehicles.  The number of weeks before you can get your car repaired has nearly doubled over the last year.  This means if your car is left un-drivable it will take much longer to get it repaired than in the past. The chart below shows this clearly.

Rental Reimbursement Coverage

Rental reimbursement coverage can be added to your auto policy for only a few extra dollars a month. Considering the average time a car is in the repair shop after an accident is 14 days, and the cost to rent adds up to about $500, your out-of-pocket expenses can add up quickly.

Coverage is subject to a daily and per accident limit. For example, a $30 per day/$900 per accident rental reimbursement limit means you’ll be covered up to $30 a day and no more than $900 per each covered accident. There are a variety of limits and per occurrence options to choose from.

Following an accident claim, you’ll be able to rent a replacement car if your vehicle is disabled or unsafe to drive. You can keep the rental vehicle until your damaged vehicle is repaired or your coverage limits run out—whichever comes first.

Even if the accident is the other driver’s fault, you may have to wait several days or longer to get the other insurance company to agree to pay for a rental car. With your own coverage, there’s no waiting.  For more information or to get rates on coverage for your situation please reach out to us.