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Rental Car Reimbursement Insurance

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What is Rental Auto Reimbursement Coverage?

Rental auto reimbursement coverage gets you back on the road when your own car is in the shop or has been declared a total loss after a covered event, such as a car wreck. This is considered optional car insurance coverage. In most cases, rental car reimbursement is not available except as an add-on under your collision insurance policy or comprehensive insurance policy.

Rental car reimbursement only kicks in if your own insurance company is paying for your car’s repairs. If the other driver’s insurance is paying to repair your car, their insurance might – and might not – pay for a rental car for you, depending on their car insurance coverage.

You can either choose to pay for a rental car out of pocket and be reimbursed by the insurance company or let them arrange a rental for you and have them pay the bill directly. Most insurance companies are required to provide you with some form of replacement transportation if their policy holder has rendered your vehicle inoperable, but you may get a vehicle that is far below the standards of what you are used to driving. You can usually arrange with the rental car facility to upgrade at your own cost.

How Much Does Rental Car Reimbursement Coverage Cost?

Typically, less than $5 per month, although depending on your specific circumstances, rental car reimbursement coverage can cost as much as $15 per month.

What is Rental Car Insurance?

Rental car insurance is an optional coverage you can purchase from the car rental agency when you rent a car. Although people get the two types of insurance confused, rental car insurance is not a part of your automobile insurance policy and rental car reimbursement is part of your car insurance policy.

Rental car insurance is offered by the rental company in the form of a collision damage waiver, supplemental liability insurance, personal accident insurance and personal effects coverage.

It’s recommended to take a close look at these optional rental car insurance options. Most of what they offer is probably covered under your already-existing care insurance policy.

What is the Difference Between Rental Car Insurance and Rental Car Reimbursement Insurance?

Rental car insurance is not an optional part of your existing car insurance policy. It is additional protection offered by the rental car company when you rent a car from them.

Rental car reimbursement is an optional part of your regular car insurance policy that you can elect to include and that will help you pay for a rental car if your vehicle ends up in the repair shop after a covered event, such as a wreck.

Do I Need Rental Auto Reimbursement Insurance?

If you think you are at risk for being at fault in an accident sooner rather than later, rental car reimbursement is a wise choice. Rental car reimbursement can be helpful if the roads you drive on are usually crowded and congested with frequent accidents. However, the average driver who practices safe and defensive driving may spend more money buying the rental car reimbursement protection every month than they’ll ever recoup after an accident when they need a rental car.

Insurance companies typically have a limit on either the number of days you can have a rental on their dime and/or how much you can spend each day on that rental car.

Find Out About Affordable Rental Car Reimbursement Today

Are you wondering if you need to add rental car reimbursement to your car insurance policy? At Freeway Insurance, our agents can help you find the right amount of coverage for your circumstances at an affordable rate. Contact us today for a quick, fast online insurance quote or by calling us at 800-777-5620 or by visiting us at one of our local offices.

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