Rental reimbursement insurance is a type of coverage that pays for the cost of a rental car while your vehicle is being repaired after an accident. It usually costs about the same as renting a car for a single day, and your insurer will only cover the cost of a rental car up to the limits of your policy. Therefore, it's best to avoid renting exotic or luxury cars. If someone else is at fault for an accident, you can use your own coverage right away and then have your insurance company recover the cost of the rental car from the at-fault party or your insurance company once the fault has been determined.
If you are left without a vehicle due to an accident caused by someone else, your property damage liability insurance should step in to cover the cost of your rental car. Before you decide to use rent reimbursement coverage, consider if you can afford to repair your vehicle and cover the cost of a rental car out of pocket. However, it may make sense to use rent reimbursement coverage if the claim process is likely to take a while. If only the car has rental reimbursement coverage, but the truck is at fault for an accident that requires a rental, rental reimbursement coverage will not apply. No, you must have rental vehicle reimbursement coverage in your policy before an accident occurs if you want to take advantage of it.
To better understand rental reimbursement and loss of use coverage, it may be beneficial to differentiate both from other types of coverage that sound or work in a similar way. In cases where you have an accident and are not at fault, the at-fault driver's insurance company may cover your rent, but the process can take time. And Enterprise Holdings offers lower car rental rates for people involved in an accident, regardless of their insurance company. Rental vehicle reimbursement coverage is optional coverage that can cover the cost of a rental car if your vehicle is damaged in a covered accident and cannot be driven. Make sure that the car rental company is aware of the situation if it organizes your replacement independently.
Some insurers have relationships with car rental companies that facilitate the reimbursement process, while others may require you to submit receipts separately for reimbursement. If the damages are severe enough to justify the need to rent a car, you're likely to file a car insurance claim under your car collision insurance coverage or also under comprehensive car insurance coverage, which includes a deductible. A mechanical breakdown isn't considered a covered claim, so you'll have to pay for the car rental out of your pocket if you don't have insurance against mechanical breakdowns. You have the right to choose any car rental service, whether it's a subsidiary of your insurance company or an independent rental agency. In conclusion, understanding how much rental car reimbursement insurance costs and how it works can help you make informed decisions about whether or not it's worth adding this type of coverage to your policy. It's important to remember that if you're involved in an accident and need to rent a car, you should always check with your insurer first before making any arrangements.