Many people take rental reimbursement coverage as it covers the expenses of a rental car. At the same time, their vehicle gets repaired in the body shop after an accident. It is imperative here to highlight that when you consider buying one, ensure that you get several quotes from multiple companies so that it becomes easy for you to compare the rates. Comparing monthly premiums and other features of the policy is an essential step that one should not miss.
However, while comparing quotes, it’s significant to compare policies that provide the same amount of insurance coverage; else, you might end up with a cheap rental reimbursement insurance policy that doesn’t even offer the required protection that you might need after meeting an accident. It is considered a vital step in order to ensure that you do not deceive by the insurance companies later. Also, you are required to be proactive and ask for available discounts while comparing the quotes. Ask the insurance company to see whether you are eligible to get a discount; in this way, you will get the best deal from rental reimbursement insurance companies.
There are a few pivotal questions that you need to ask your auto insurance agent. For instance, confirm whether your personal insurance policy will cover the vehicle you want to rent; also, if the insurance policy coverage is not sufficient, you must ask about the changes that could be made in your personal policy to ensure that you are well covered. On the other hand, if you own a homeowners/ renters insurance policy, make sure to double-check whether your personal items will be covered or not.
What Is Rental Reimbursement?
Auto insurance rental reimbursement is coverage that helps the car owners in paying for the cost of a rental car while their car is being repaired in a workshop as a consequence of a covered claim in an insurance policy. When it comes to the term of keeping the rental car, generally, you can use the rental car till the time your damaged vehicle is back after getting repaired or until your insurance coverage limit gets exhausted, whichever comes first. It is important here to highlight that rental car reimbursement does not apply when your vehicle is given for routine maintenance work or if you need to rent a car for any vacation.
Rental reimbursement coverage is also known as transportation expense coverage or rental car coverage. It is an optional coverage that you can purchase with a typical car insurance policy, which means you are required to add this coverage to your policy. You will have to pay extra premiums for rental reimbursement coverage.
If, after the accident, your vehicle suffers a total loss, then it is suggested that you should start looking for other options such as buying a new car or arranging other replacement options because the amount of authorized rental time gets limited. Therefore, after realizing the fact that your car is under total loss, you should immediately start looking for additional alternatives to not come across any difficulty later.
What Does Rental Reimbursement Typically Cover?
Rental reimbursement insurance companies help pay for the rental vehicle or for an alternate option only in the case of an accident or due to covered loss. What it covers depends on the coverage that you have with your car insurance policy. For instance, if you own collision coverage and meet with an accident, it will be covered. The reimbursement coverage will assist you in paying for the transportation costs while your vehicle is being repaired after the accident.
Policyholders can select from where they want to rent the vehicle, but most insurance companies have rental car agencies at their partners. So if you rent a vehicle from them, then the agency will send bills directly to your insurance company. But if you have rented the car from an independent rental car agency, then you need to pay on your own; however, you can ask for reimbursement from the insurance company. But if severe weather conditions damage the car, then you must have comprehensive coverage with your insurance policy.
Things to Know About Rental Reimbursement Insurance Coverage
After an auto accident, you will have many things to concern about. Commuting to the office the next morning should not be one of them.
This is something that can happen to anyone—and arranging an alternate means of transportation at the time your car is gone for repair and maintenance can be a trouble. But rental auto reimbursement can help ease some pressure following an accident while help in saving you some bucks as well.
Below are seven things you must keep in mind before buying rental reimbursement coverage:
- It is Optional
Rental reimbursement cover does not apply automatically following an accident. As a non-compulsory coverage, it has to be bought separately. A general delusion is that car insurance on its own covers the expenses of replacing a rental vehicle. In realism, you frequently have to pick this insurance cover on your own and apply it to the insurance policy.
2. There is a Limit
You’ll probably have a per day as well as a per-occurrence limit. For instance, if you have a 35/950 limit, your insurance company will pay up to $35 each day but not more than $950 per claim relating to a rental car. Most insurance companies will propose many diverse options, permitting you to select the limit that best suits your situation.
3. Your Car Should Be In A Shop Because Of A Covered Loss Or Damage
Rental reimbursement coverage can be put to use at the time your car is being fixed following an accident or another covered loss, not for daily upkeep or maintenance. So, if your vehicle is at the repair shop following an accident, a rental vehicle is covered up to the limit you choose. Nonetheless, if your vehicle is experiencing routine upkeeps that will retain it in the repair shop overnight or you are leasing a car for a road trip with family or friends, then auto insurance rental reimbursement coverage would not apply.
4. Your Auto Insurance Rental Reimbursement Can Be Used Right Away
After filing a claim, if your car isn’t travelable, you can be sanctioned for a rental car right away. If not, you will depend on the driver who was at fault for his insurance company, and you might need to pause a little before they can evaluate the claim and come to an agreement to recompense for a rental vehicle. With rental reimbursement coverage, there’s no need to wait.
5. An Additional Insurance Is Not Needed
For the majority of the part, when you already have bought a collision and comprehensive cover in your car insurance, it will also transfer to the rental car, eradicating the need to buying an extra cover from the car rental company. Speak with an independent agent who can guide you properly as to when this applies.
6. There Is A Possibility You Don’t Need One At All.
If you have been using or access to any other car, car sharing facility, or public conveyance at the time, your car isn’t travelable. Then you may not want rental car reimbursement. But if you desire the security option of taking a rental obtainable if you require it, you may want to pick this coverage.
7. The Cost Is Much Less Than Expected
A year of rental reimbursement cover will classically charge less than one day of self-payment of rental car expenses. It is a great way to save money and get repairs done at ease.
How Much Does Rental Reimbursement Car Insurance Cost?
The cost of rental car insurance policy can vary from state to state, by the amount of coverage you select and by rental Car Company. Following is the list of some average cost for each feature of the rental insurance policy:
- Supplemental liability insurance costs $8 to $12 a day
- Collision damage waiver or loss damage waiver cost $20 to $30 a day if it is bought by a rental car company
- Personal accident insurance costs $3 a day
- Personal effects coverage costs $2 a day
How To Choose The Best Rental Reimbursement Car Insurance?
Different rental reimbursement insurance companies offer different types of insurance policies based on your condition. If you are on the lookout for the rental car coverage best suited to your needs, you must consider certain other factors first. Read on to know more!
- Optional Features
Most rental reimbursement policies offer different types of optional features. For example, some policies include swift roadside assistance and coverage for personal effects. Meanwhile, some other policies will require you to avail these options for an additional price.
If you haven’t given much thought to these optional features, it is time that you do. Let’s say that you are on a business trip and are carrying an expensive laptop or any other costly piece of equipment with you. What if your rental car gets stolen? You might never get those items back. Fortunately, there are many rental reimbursement insurance companies out there that will replace your lost items.
What if you are on a road trip, but your car met with an unfortunate accident? Did you know that some companies offer roadside assistance coverage for when your rental vehicle breaks down in the middle of nowhere? As mentioned earlier, several policies might not come equipped with these extra features and will only add them at an additional price. You should carefully consider if you need these add-ons before you make a decision.
- Price
When you are on the lookout for rental reimbursement coverage, you must think about the price first and foremost. The whole reason behind people getting stand-alone rental cars is because they do not want to overpay for coverage at the rental car counter.
You never know; prices may change quickly, and getting optional features might also burn a hole in your pockets. When you are shopping around for coverage, make sure to compare it with what you might have to pay for the same coverage at the rental car counter.
- Ease-of-Use
Rental reimbursement insurance companies like Bonzah, Insure My Rental Car, and Allianz offers instant quotes online. Thanks to these companies, you can purchase coverage online easily.
To get quotes from Sure Insurance, you will have to offer information in the form of the name, phone number, email address, and home address first. But, most people prefer seeing the insurance quotes before they offer the information online. This is because handing over your information online can lead to unwanted calls and emails from insurance companies.
Do you like a more personal touch as opposed to getting your insurance quotes online? This might also play a huge role in your decision-making.
Please note that all stand-alone insurance providers necessitate the purchase of coverage before getting a rental car. You do not want your policy to get invalidated by trying to pick out insurance coverage after you get your rental car.
When Can You Use Rental Reimbursement Insurance?
You can use the rental reimbursement coverage at the time when your own vehicle is not with you and is being repaired after meeting an accident or due to other covered losses. You can’t claim rental reimbursement coverage when your own vehicle is a way for routine check or leisure. Also, if you plan for a vacation and need a rental car, you cannot use a rental reimbursement policy.
How Does Rental Reimbursement Work?
Auto insurance rental reimbursement coverages are subjected to certain daily limits and per claim limit. For instance, if the rental reimbursement limits offered by the rental reimbursement insurance companies are $25 a day and $750 a claim, then the insurance company is liable to pay up to $25 per day, and it cannot pay more than $750 per claim for a rental vehicle.
All the policyholders possess the right to choose a rental car service; they can select via their insurance agent or an independent rental vehicle provider. If you are choosing a rental agency through your insurance company, then the agency will send the bills directly to your insurance company. You can keep the rented vehicle till the time you get your damaged car back from the repair or until your insurance policy coverage exhausts, whichever comes earlier.
What Does Rental Reimbursement Coverage Pay For?
Rental reimbursement insurance companies’ coverage will assist you in paying for several expenses such as transportation, public transportation fare, and a rental car when your vehicle is being repaired after claiming the insurance coverage. It is crucial here to highlight that auto insurance rental reimbursement will not apply when your own vehicle requires routine maintenance or when you require a rented vehicle for the purpose of a family vacation.
How Do I Make Sure Coverage Applies To My Rental?
In order to ensure that your coverage applies for your rental car, it is suggested that you should pay for the rental vehicle via a credit card that involves this feature. Do not take collision coverage offered by the rental car company. Also, the driver’s name (at the time of the accident) must be there on the rental car agreement.
Do You Need Rental Reimbursement Car Insurance?
It is one of the most popular queries that people have if they rent a car for domestic travel purposes. In order to decide this, there are two things that you should consider; first, think about whether you and the rental vehicles need to be covered. The second thing is whether you will be able to pay for unnecessary duplicate insurance policy covers that hold the position to increase the price of your rental vehicle. On the basis of these points, you must decide whether you need to have a rental reimbursement policy for domestic traveling.
Does My Insurance Cover Rental Reimbursement?
Most times, the primary auto insurance policy will cover and the extent of a rented vehicle as well. But in case if there is an accident while driving a rental vehicle for which you are held responsible, then your liability insurance coverage will pay up to the number of policy limits in order to pay for the damages caused to other vehicles or premises.
Does My Credit Card Cover Rental Car Insurance?
Credit card coverage generally applies to loss damage waiver or collision damage waiver. It is expensive coverage that a rental car provider provides. Credit cards cover the cost of towing expenses and other administrative charges. Most credit cards cover other expenses as well, such as loss of use.
Should You Take Rental Reimbursement Car Insurance?
It is highly possible that you might require to take a rental car reimbursement insurance policy in the following cases:
- If you do not own a personal car insurance policy
- If you own a personal car insurance policy, but your coverage limits are not sufficient
- If you are traveling outside of your country and your personal insurance policy does not cover you
- If you are traveling for business needs and your personal insurance policy does not cover you
Can You Get Reimbursement From An Insurance Company?
You can get insurance coverage for a rented vehicle from your insurance company, but only in the case when you possess rental reimbursement coverage. This is an optional coverage that will cost you around $1 or $3 per month by most auto insurance policies. But still, there are many people who do not take this coverage, but it is important here to understand that it can help you in saving a lot of money after you meet with an accident.
Auto insurance rental reimbursement policies have a limit; therefore, it is recommended that you should check your insurance policy before you rent the vehicle. You can use the rental coverage if your vehicle is vandalized, stolen, or damaged due to severe weather conditions. It can’t be used when your car is away for regular maintenance and other such purposes. In case if you need to use rental reimbursement coverage, then you are left with two options which are:
- Immediately contact your auto insurance company and check their approved rental car providers. You can get a rented vehicle from these approved providers; the rental company will send the invoice to the auto insurance company on its own
- Or you can get a rented car from any company of your choice and pay for it. Later you can send the bills to your insurance company and ask for a claim. The insurance company will reimburse the cost of the rental car.
It is pivotal here to note that rental reimbursement coverage does not include collision damage coverage. When you rent a vehicle, you may be asked to buy it, but if the general auto insurance policy has comprehensive and collision insurance coverage then, it will be transferred to the rented vehicle. Make sure that you discuss this point with your auto insurance company.
How Does Coverage Vary For International Rentals?
Renting a car in some countries may be excluded from some coverage. MasterCard and Visa coverage does not provide rental cars in Ireland, Israel, and Jamaica. It doesn’t cover New Zealand, Italy, and Australia when it comes to American Express cards. However, the best part is that if a personal auto insurance policy does not cover you out of the United States, then, in that case, secondary credit card coverage becomes the primary one on its own.
What Happens If You Damage A Rental Car Without Insurance?
The person stands responsible for all the damages incurred to the rental car and for all the liability issues if the accident has happened due to their fault. However, if the person is not at any fault, then, in that case, the rental company will manage it directly with the insurance company of the other driver. But it is important here to highlight that your rental company might something from you before the claim gets settled. In this case, you might need to directly contact another driver’s auto insurance company in order to get reimbursed. Therefore, it’s vital to remember that it is generally considered illegal to drive a rental car without any insurance policy. It is mandatory for all rental car companies to have the state’s minimum liability coverage for their vehicles in most states.
Tips For a Better Car Rental Experience
Are you planning to go on a road trip along with your friends? Do you want to get to your home or the hotel from your airport without any hassle? Well, rental cars can ensure that you have a nice and peaceful experience.
Not only are rental cars very efficient, but these vehicles can help you save up on money. Read on to know about how you can have a satisfactory rental car experience.
- Don’t Plan Things at the Last Moment.
If you don’t make plans in advance, then you might not get what you want. Moreover, if you plan a trip during a travel-heavy season, then it is most likely that there will be fewer cars out there.
Let’s say you have planned much for a trip during the year when most people are traveling with their friends and family. Even if your agency can’t offer you the car you originally reserved, you might get lucky and upgrade instead. How cool is that?
- Research Carefully for a Better Experience
Did you know that memberships in USAA and motor clubs can help you get the best deals for yourself? You can even get additional offers in the form of double upgrades.
You can use the USAA Car Rental Comparison Tool to compare rental companies and choose the one perfect for you.
- Check for Coupons
Early research can help you score amazing coupons. Thanks to these coupons, you will be able to get rental cars at meager prices!
- Add-ons
When you are comparing different companies for rental cars, do not forget to consider the not-so-transparent fees. Did you know that rental agencies make lots of profits throughout the year in the form of insurance and add-ons such as GPS?
Furthermore, underage driver fees and fees for an additional driver can also increase the price exponentially. Tread carefully.
- Forego Insurance
Go without rental reimbursement coverage for cars if you don’t need it. First, check with your auto insurance provider and your car insurance company about the kind of coverage you already have. For instance, membership at USAA can equip you with liability coverage. If you want to know more, go through USAA’s coverage for rented vehicles.
Collision damage waivers come at a heavy price. So, please make sure if you actually have any use for it or not. When you rent a car via USAA, fees that are generally charged after any kind of crash or collision are waived off.
- Follow the Rules
Don’t be in a rush as it can cause you trouble later. What if you didn’t check your rental car for any previous damages but were held responsible for damages that happened even before you got it? Before you leave with your car, make sure to check it out thoroughly with your agent.
Did you know that many insurance companies might add a fee in case of more than one driver? Also, you don’t want to incur any additional penalties or surprise alterations. Hence, go over the terms and conditions of your rental contract carefully before you take any decision.
- “Pay Now” Option
Many rental car companies offer a “Pay Now” option. If it’s possible, opt for this option. This is because it might cut down a significant amount from your rental rates.
Many companies out there boast a whopping 35% savings when customers choose to pay in advance for rental cars. However, these prepay rates are often subject to other terms and conditions and big cancellation fees. So, please be aware.
- Fill the Tank
Did you know that you can save a lot of money by filling the tank yourself instead of opting for the prepaid fuel option? However, please remember to refill the tank as you will have to cough up a heavy per-gallon price if you don’t.
What To Do If You Get A Speeding Ticket In A Rental Car?
If while driving you to get pulled over by traffic police, you must handle it as quickly as possible on your own. The best thing you can do at that moment is to clear the fine on the spot by paying for the ticket. On the ticket, you will notice there are ways mentioned as to how you can pay. Always consider paying through online means and avoid giving cash, as it can help you in keeping a record of the transaction for future purposes.
It can get complicated if you receive a ticket on a rental vehicle without even knowing it. Nowadays, lots of violations are levied without the driver’s knowledge; all credit goes to modern laser technology as well as red-light cameras. Since the municipal locality where the wrongdoing occurred has no way of getting to know who is driving at that time, it will make use of a picture of the car’s license number to trail down the vehicle’s owner, which will be the rented vehicle’s owning company. The scenario could be that without even realizing that you committed the violation at the moment when you return the vehicle.
If this happens, the rental car firm will get the ticket and then forward the fine to you and additionally will charge an administration fee. Your driving license details, too, will be shared by the rental car-owning company to the authority officials.
All the unpaid dues will, in due course, be sent to a fine collection agency and might as well lead to a suspension of your driving license. If that occurs, you may end up on the rental car firm’s dreaded Do Not Rent List.
Is Rental Car Coverage Primary Or Secondary?
There are two types of coverage offered by credit cards when it comes to rental car reimbursement, i.e., primary coverage or secondary coverage. Primary coverage is more beneficial, but there are only limited credit cards that provide it. In primary coverage, after meeting with an accident, primary coverage pays first and not the auto insurer. It allows you to sidestep your personal auto insurance, which means you can simply escape the payment of deductible and see your insurance premiums increase potentially.
Most credit cards provide secondary coverage; in this, your auto insurance company comes in the position to pay the claim. The credit card reimburses the deductibles and other costs that are not covered by the personal policy.
Do This Before You Rent A Car
There are certain essential things that you must do before you rent a car as it will help you in need of the hour:
- Take all the important contact numbers:
Before you rent a car, make sure that you possess all the important and emergency names and numbers. You must know whom to contact to find accident report forms so that you can claim for the coverage. Make sure that you know everything related to the procedure of rental reimbursement insurance companies.
- Read your insurance coverage:
It is extremely vital to do a little research about your personal insurance policy and everything that your credit card can cover; make sure that you are well informed about the number of coverage limits, deductibles, and whether it’s a secondary coverage or a primary one.
- Get ready to pay:
If you do not possess rental coverage, then it is always suggested that you should buy the rental company’s insurance, or you can also buy inexpensive insurance coverage from Sure. It will cost you cheaper than most rental counters. However, it offers only collision coverage and no liability coverage for premises or other people.
Do I Really A Need Rental Reimbursement Insurance?
Buying an auto insurance rental reimbursement is optional because it can be used only when the insurance company is paying for the rental car when the insurer’s damaged car is being repaired at the body shop. It is pivotal to remember that you are allowed to use rental car reimbursement coverage in case of an accident. You just simply cannot avail of the claim when your vehicle is given for maintenance, or you need a rented car for your next holiday trip.
Rental Reimbursement Coverage Limits
It is pivotal for everyone to remember that an insurance cover has certain limits. In other words, there is a certain maximum amount that your insurance company would pay for you in case of a covered claim. When it is about rental reimbursement coverage, it has a daily limit and a duration of maximum days it can be used. For instance, most rental reimbursement insurance companies offer up to $30 each day for a maximum of 30 days until the damaged car of the insured person comes in a usable condition again.
However, if the cost of your chosen rental car is more or you need to use it for a long time, then you will need to pay on your own. So, it becomes ultra-important to read all the limits and features of your rental car reimbursement policy before you need to claim for it. Also, there are certain expenses that are not covered in the rental reimbursement coverage, such as the expenses of gas.
Can I Get Rental Reimbursement After An Accident?
Rental car reimbursement insurance coverage is allowed only when the insured person’s vehicle is sent for repair after meeting with an accident or another covered loss. It is significant here to mention that one cannot enjoy the benefits of an auto insurance rental reimbursement policy if the car is given for routine check, maintenance, or leisure.
Therefore, if your car is at any workshop for the purpose of repair after an accident, then rental car reimbursement would cover up to the limits of your insurance. But, if it is given for routine maintenance and for other purposes which can take more than one day, then rental reimbursement cover will not be applied.
How Long Will The Rental Reimbursement Be Covered?
You can use credit card coverage with a collision damage waiver. Credit card includes coverage for administration fees and towing expenses; there are many credit cards that include loss of use as well. It means it will pay the rental company for the time that the car is out of service. The credit card coverage for rental cars is generally limited to a particular time frame. For instance, Visa provides coverage for rental cars for 15 continuous days in the domestic country and for 31 days when it is outside it. But in case your coverage is primary, then rental coverage is given for 31days.
Types Of Insurance Needed For Rental Cars
You need to have majorly three kinds of insurance coverage in your basic auto car insurance policy in order to cover the claim and expenses of a rental car; these are comprehensive, liability, and collision insurance coverage. When it comes to the damages that occurred to the vehicle, not due to a road accident like theft or vandalism, then it is taken care of by comprehensive insurance coverage.
All the damages occurred to the other person’s premises or vehicle, and if there are any injuries incurred to the other person, then liability insurance coverage will cover the damages up to the limit of your personal insurance policy. On the other hand, the collision insurance coverage will pay for all the damages incurred to the rental car after meeting with an accident.
Will You Have To Pay A Deposit For Your Car Rental?
It is one of the most important queries that need to be addressed. It is vital here to understand that when you take a vehicle for rent when the insurance company is paying for it, in most cases, it is essential to give a credit card to the rental company. It is provided to maintain their records; in fact, in some rental car companies, you are required to give a small deposit.
However, the amount of deposit is less than the standard amount. The amount you will deposit applies to the remaining balance after the insurance company pays for it. But if it is not required, then you will get it back as soon as the car is returned. It is also essential to remember that rental companies provide extra insurance, which is enough to cover the car in case the car meets with an accident. Therefore, if you possess collision insurance coverage in your car insurance policy, it will cover a rental car’s cost, which means additional insurance is not necessary.
