Question:

Do I Automatically Have Rental Car Reimbursement Coverage on my Policy?

Answer:

If you are involved in an accident and your car is damaged, you will likely need a rental car to get around town while your car is being repaired. Before you rent a car, you need to find out if your car insurance company covers this for you.

Most companies don’t offer rental car reimbursement as part of their basic policies, but you may have purchased it as an extra add-on to your policy. It costs just a few dollars a month to have a rental car paid for by your insurance company, so check first to see if you have it included in your policy.

If you do have rental car coverage, your insurance company will work one of two ways:

1. They handle the reservation and payment for the rental car or
2. You handle the reservation and payment, and your insurance company reimburses you up to the maximum allowed (usually $30 a day)

Before calling a rental car company, check with your insurance company to see what the protocol is. If you don’t follow their rules, you may find yourself out the money it cost to rent the car with no reimbursement. Some insurance companies have certain rental car companies they work with, so if you choose one outside of this network your rental may not be eligible for reimbursement.

Is It Worth the Money?

You may be debating whether or not you need rental car insurance. There’s no easy answer: what you pay for the extra protection each month may be more than the actual cost of renting a car, should you need one after an accident. It may be cheaper to just plan to rent a car yourself should you find yourself without a vehicle.

Do a cost comparison to see which option is a better fit for you.