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Rental Car Coverage: What It Is And Why You Need It

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When you buy car insurance, you get to choose what types you want, the amount of the coverage, and the deductible. You always get to choose what add-ons you would like to have. An add-on is an extra form of protection that covers you for a specific purpose, and one common add-on is rental car reimbursement coverage. If you are not sure how this coverage works, here are some things you should know.

What It Is Not

Before you can understand what rental car reimbursement coverage is, you should learn what it is not. It is not a form of coverage that protects a car that you rent. Suppose that you decide to go on vacation and rent a car during it. Rental car reimbursement coverage would not pay for the costs of the rental car. It would also not cover the liability of renting the vehicle. You will need a regular auto insurance policy to cover the insurance needs for the rental car, or you would need to purchase car insurance from the rental car company for this protection. You would always have to pay the costs of the rental car, too.

What It Covers

Rental car reimbursement coverage provides protection for one thing. If you wreck your car and have coverage for the accident, you might need a car to drive while you wait for the repair shop to fix your vehicle. If so, your rental reimbursement coverage will provide you with compensation to pay for the rental car. This purpose is the only thing it covers, and some conditions exist.

The first condition is that your insurance must cover the accident. If it does not, then you cannot receive reimbursement from your insurance company for the costs of a rental car. Secondly, your coverage will provide a daily amount of compensation. The amount might be $30 or $40 a day. If you select a rental car that costs more than this, you must pay the difference.

Why You Need It

You can add rental reimbursement coverage to an existing policy for a minimal cost per month. Because it is so affordable, it is worthwhile to have. If you ever encounter an accident and need a rental car, you will save a lot of money by having this protection.

Talk to a car insurance agent to learn more about the add-on options you can choose from or to ask him or her any questions you may have. Contact a car insurance agency near you.