Home Insurance About Rental Car Coverage, What to Know?

About Rental Car Coverage, What to Know?

There are plenty of things to worry about after a car accident. You shouldn’t have to worry about getting to work the next morning.

We’ve all been there. Arranging alternate transportation while your vehicle is being repaired can be difficult. Rental reimbursement coverage can ease some of the stress that comes with an accident and save you money.

These are seven things to remember before you buy rental car coverage.

1. It is optional

After an accident, rental reimbursement coverage is not automatic. It is an optional coverage that must be purchased separately. Many people believe that auto insurance covers the cost to replace a rental car. You will often need to choose this coverage and add it to your policy.

2. There is a limit

There will likely be a daily and a per-occurrence limit. If you have a 25/750 limit your insurance company will pay $25 per day, but not more than $750 per rental vehicle claim. Many insurance companies offer a variety of options that allow you to choose the right limit for you.

3. Due to a covered loss, your vehicle must be at the shop

Your vehicle may be repaired following an accident or other covered loss. Rental reimbursement is not available for routine maintenance. If your vehicle is being repaired after an accident, rental cars are covered up to the limit. Rental reimbursement coverage is not available if the car is being maintained or rented for a family trip.

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4. It can be used immediately

If your vehicle isn’t drivable after you report a claim, you can get a rental car authorization right away. You will have to rely on the insurance company of the at-fault driver to assess your claim and approve payment for the rental car. There is no waiting with rental reimbursement coverage.

5. There is no need to be concerned about adding insurance

Most importantly, collision and comprehensive coverages from your auto insurance policy will transfer to your rental car, so there is no need to buy additional coverage through the car rental agency. Your Grange agent will be able tell you when this is applicable.

6. It may not be necessary at all

Rental reimbursement coverage may not be necessary if you have access to a rideshare or other vehicle. You may opt in to rental reimbursement coverage if you want the security net that a rental is always available should you ever need it.

7. It is cheaper than you would expect

A year of rental coverage is typically less expensive than one day’s out-of-pocket car rental expenses.

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