Accidents are bound to happen, and they may leave your vehicle destroyed. Getting into an auto accident can be frustrating. But the situation will be worse if you have to wait for a longer period to get your car back on the road. Vehicles involved in road accidents take a minimum of 11 days, depending on the damages at the auto repair shop.
Even high-technology vehicles with advanced connectivity and safety features involved in collisions take longer to be repaired. Researchers explain that the complexity in modern cars has increased the repair time. Therefore, car owners need to get rental car insurance to expedite the process.
Rental auto insurance can be hard to comprehend, even for individuals who have used policies for years. If you are not cautious enough, you may mix up rental car reimbursement and rental car insurance. You need to have a deep understanding of the two coverages to know whether your car is covered.
It is essential to know the car’s coverage, whether renting it for a vacation or a simple road trip. There are cases where you may want to add rental car reimbursement to your car insurance policy.
Additionally, rental car reimbursement coverage can be an additional coverage and help pay for the car rented if it gets in an accident and gets damaged. However, note that rental car coverage does not cover rental cars for vacations.
How Rental Reimbursement Auto Insurance Works
A rental reimbursement car insurance pays for your transportation expenses like a rental car or public transportation costs as your vehicle is getting fixed at the auto repair shop. Rental auto reimbursement only covers transportation fees related to the claims covered in your car insurance policy. So, you must refer to your policy to know the coverages included.
Rental reimbursement car insurance covers rental car costs up to a specific amount for a particular number of days. If your policy fails to have collision coverage and your vehicle needs repair due to an accident, the insurance company will not cover your transportation fee. Therefore, if your vehicle is destroyed, you will be responsible for your transportation costs.
Some insurers partner with car rental companies that you can use, while others will allow you to select your preferred rental car. When using rental car reimbursement insurance, you do not need to pay deductibles. Moreover, if the car rental agency is within the insurer’s network, you will not have to pay money upfront.
Minimizing Costs On Rental Car Reimbursement Insurance
Everyone wants to get value for their money. When getting rental car reimbursement insurance, you will want to reduce costs and save more cash. Here are a few tricks to help you reduce costs on this coverage:
Upgrade Your Car Insurance
Including rental car reimbursement insurance, also known as transportation expenses coverage in your auto insurance policy, will limit your daily rental car expenses. The daily limits are set based on the costs of rentals in your region.
What’s more, your rental car reimbursement insurance will limit the models of cars you can rent. Renting cars out of the types specified will subject you to out-of-pocket costs. For instance, if you select a lower coverage amount and your rental car expenses exceed your coverage limits, you will pay money from your pocket.
To avoid these extra charges, you need to choose a better policy. Upgrading your auto insurance coverage will minimize or eliminate the out-pocket expenses.
Understand Your Auto Coverage
You need to have a vast knowledge of your car insurance policy as some policies may help protect your rental car. Certain car insurance policies overlap with rental car coverages, thus allowing you to save costs. These include:
- Bodily injury insurance. It is liability insurance that helps pay for the person’s medical expenses in your car during the accident. If your auto coverage includes the policy, you will not have to pay for liability insurance from the rental agency.
- Comprehensive auto insurance. The coverage protects your vehicle from damages resulting from fires, theft, and weather elements. If you have this insurance, there is no need to take loss-damage insurance for your rented car.
- Personal injury protection. Personal injury insurance covers medical bills for you or your passengers if you get hurt in a car collision. The cover may also overlap with rental company insurance.
Consult Your Insurance Company
It would be best to work with your insurance firm to know the coverages in your homeowners and auto insurance policies. The policies may cover your personal belongings in and out of your home. If this is the case, you will not have to cover your rental car’s items.
Rental car reimbursement insurance is crucial. Adding the coverage to your auto insurance policy helps you cover rental car expenses without paying extra costs from your pocket. Follow these tips to save more on your reimbursement insurance.