What Does Rental Car Coverage Actually Cover on Your Auto Policy?
Rental car coverage is often misunderstood, but it can be a valuable addition to your auto insurance policy. Whether your car is in the shop for repairs after an accident or you've rented a vehicle for a trip, knowing what your policy covers can save you money and stress. In this post, we'll break down what rental car coverage typically includes, when it applies, and how it can benefit you.
Understanding Rental Car Coverage
Rental car coverage, often referred to as rental reimbursement coverage, helps pay for a rental vehicle while your car is being repaired due to a covered claim. It's important to note that this coverage is not for renting a car while on vacation or for business trips — it's specifically designed to keep you on the road if your insured vehicle is temporarily out of commission.
What Does Rental Reimbursement Cover?
Rental Vehicle Costs: It covers the daily rental fees for a car, up to the limit specified in your policy.
Transportation Expenses: In some cases, policies may cover transportation alternatives like rideshares, taxis, or public transit.
Repair-Related Rentals: Coverage is only applicable if your car is being repaired for a claim covered by your comprehensive or collision insurance.
What Isn’t Covered?
Leisure or Business Rentals: If you're renting a car for personal use or travel, this coverage won't apply. You'll need to purchase coverage from the rental car company or check if your credit card offers protection.
Long-Term Rentals: Most policies have daily and total limits for rental costs, typically up to 30 days.
Uninsured Incidents: If the damage isn't covered under your comprehensive or collision coverage, rental reimbursement won't apply.
How Much Coverage Do You Need?
When selecting rental reimbursement coverage, consider factors like how long repairs typically take and the type of vehicle you would need. Most policies offer coverage in tiers, such as $30 per day up to $900 total. Hixson & Malinowski Insurance Agency can help you determine the right level of coverage based on your needs.
Why Add Rental Reimbursement to Your Policy?
Convenience: You won't have to worry about the cost of a rental car while your vehicle is being repaired.
Peace of Mind: Knowing you have coverage can reduce stress during an already difficult situation.
Cost-Effective: Rental reimbursement coverage is typically affordable and can be a smart addition to your auto policy.
Partner with Hixson & Malinowski Insurance Agency
Understanding the specifics of your rental car coverage is essential. At Hixson & Malinowski Insurance Agency, our team is here to help you navigate your auto policy and ensure you're adequately protected. Contact us today to learn more about rental reimbursement coverage and how it can benefit you.
