There are a few different reasons why you might be renting a vehicle. These varying circumstances can cause the words “Rental Coverage” to get confusing. Lets break it down and talk it out. We’ll go over the difference between renting a car because of a claim; as well as renting a car because you’re out of town.
What is rental reimbursement?
Rental reimbursement it an optional coverage you can purchase on your policy if you elect to carry full coverage. It is typically sold in increments of 30/900, 40/1200, or 50/1500 which means per day/total allowable amount. This coverage only applies when your vehicle is involved in a covered loss. This coverage does not pay for or reimburse any portion of the cost of renting a car because you’re on vacation.
Do I need to have it?
It’s important to note, this coverage is not applicable if you are electively having work done on your vehicle. If you are getting new tires and a tune up and the mechanic is going to have your vehicle for two days, you will not have coverage for a rental under your insurance policy. The coverage only applies as the result of a covered loss.
If I rent a car, do I have coverage?
Yes, if you rent a car for any reason, the coverage you carry on your personal auto insurance policy will extend to that vehicle while you are driving it. This will take care of injuries and property damage up to the limits you carry on your policy. If you only have liability on your vehicle, then you will need to purchase collision protection from the rental car company to protect the rental car.
You do not have to purchase anything extra from your insurance company for your policy to extend to the rental car you’re driving.
Are there any gaps in the coverage?
There is no additional option to purchase on your personal auto that will cover this gap.
The coverage you can buy from the rental car company will often cover that potential expense, but the cost of paying for that insurance package is often pricey and may not be worth it.
It’s best to weigh the cost of the package against the risk of covering that loss if it should happen to make your decision.
Lets hit the main points again.
Rental Reimbursement only applies when you purchase this coverage ahead of time and your vehicle is involved in a loss. There is never reimbursement of a rental vehicle just because you’re going on vacation.
If you need a vehicle to drive while yours is being repaired or replaced after a loss, you need to carry rental reimbursement on your policy. This does not apply for maintenance concerns you are electively having done.
You do not have to purchase anything extra for your personal auto insurance coverage to extend when you’re driving a rental vehicle for any reason.
There is a gap in the coverage as your personal auto will not reimburse lost wages to the rental car company.
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