After a car accident, it can be a hassle – and expensive – to arrange for alternate transportation while your vehicle is being repaired. Rental car reimbursement helps pay for a rental car if your own vehicle can’t be driven due to a covered collision insurance or comprehensive car insurance claim.
If your car takes weeks to repair, this coverage can save you hundreds of dollars. Without rental reimbursement, you run the risk of paying for the rental car with your own funds.
Rental reimbursement amount varies according to the policy
It’s important to read your policy carefully to determine if all or a portion of the rental costs will be covered. This is typically specified using a daily limit and an overall maximum amount. For example, rental reimbursement coverage defined as 30/600 provides a maximum of $30 per day and an overall maximum of $600 during the entire time the vehicle is being repaired.
Lower your premiums by purchasing a lower daily limit
Purchasing a lower daily limit decreases your premium but still provides some rental car coverage; you simply pay the difference. While you won’t get as much coverage, you can relax knowing that some of the rental car costs are covered.
Rental cars aren’t your only option
Rental car reimbursement may also apply to public transportation. If you choose to ride the subway or take a taxi to work, you may still get the benefits of rental reimbursement.