Rental Reimbursement Coverage in Kansas City, Missouri and Kansas City, Kansas
Did you know that a vehicle’s average time in the repair shop after an accident is 14 days? If you’re without a vehicle for two weeks and don’t have rental reimbursement coverage, your out-of-pocket transportation expenses can quickly add up.
Rental reimbursement coverage is an option you can add to your auto policy. It helps to pay for a rental vehicle if your vehicle needs repairs for a claim covered by your insurance policy. This coverage may also cover other transportation costs like cab fare and public transit expenses. For only a few extra dollars a month, rental reimbursement coverage can be added to your auto policy and provide peace of mind to you by ensuring that you’ll have transportation if your vehicle is damaged in a covered accident.
Essential Things to Know About Rental Reimbursement Coverage
If you are considering purchasing rental reimbursement coverage, here are some things to know:
Coverage only applies when your insurer is paying for repairs to your vehicle.
Coverage can only be used after an accident, not for routine maintenance or the use of a rental vehicle while on vacation.
Another driver’s liability insurance coversyour rental vehicle costs if they are at fault.
You can usually rent avehicle yourself and get reimbursed later, or you can let your insurer arrange your rental.
Expenses such as the cost of gas, mileage or a security deposit are your responsibility.
What Losses Does Rental Reimbursement Insurance Cover?
Rental reimbursement insurance doesn’t technically provide coverage for losses like your auto policy does, but it does provide coverage for transportation in the event of an auto loss or claim. Typically, your rental reimbursement insurance coverage will overlap with accidents that fall under your collision or comprehensive coverage because you would be seeking a rental vehicle while your vehicle is being repaired following an incident or while you shop for a new vehicle.
Your insurer may require youto have collision or comprehensive coverage first to be eligible for rental reimbursement.
There is not typically a deductible for rental reimbursement coverage.However, there’s usually a deductible you’re responsible for paying to get your vehicle repaired through your collision or comprehensive coverage.
While every comprehensive and collision policy varies, accidents that are typically covered under these policies often include:
Depending on your policy, you may also be able to receive reimbursement for transportation costs outside of a rental vehicle while your vehicle is being repaired.
How Does Rental Reimbursement Coverage Work?
You may choose any rental car service, whether it’s through an affiliate of your insurer or an independent rental agency. If you choose an affiliate partner through your insurer, the rental car company can directly bill the insurer. This is convenient because you do not have to take the time to file a reimbursement for the rental vehicle’s cost. If you arrange your replacement independently, let your rental car company know—discounts are often given to those renting due to an accident.
If your vehicle is a total loss, your authorized rental time is limited, so you should begin shopping for a replacement vehicle as soon as you learn your vehicle is a total loss.
It’s also important to note that your insurance company won’t pay for your rental indefinitely. Your policy has a limit on how much it will pay daily and how much it will pay per claim. The limit per claim might be a maximum dollar amount or a maximum number of days of coverage.
Collision with another vehicle
Crashing into a stationary object
Hitting deer or other wildlife on the road
What Does Rental Reimbursement Coverage Cost?
While it is typically inexpensive to add rental reimbursement coverage to your auto policy, the cost of your rental reimbursement coverage will vary significantly based on where you live and what reimbursement limits you select. Most policies impose a daily limit and a limit to the maximum number of days it will provide reimbursement for transportation costs. For example, you may select a policy that provides reimbursement up to $50 per day for 21 days. You will need to work with your agent to determine what limits make sense with your budget and lifestyle.
There are a few things to consider when purchasing rental reimbursement coverage. First, you’ll need to evaluate the average cost of rental vehicles in your area, as these expenses vary greatly across the country. Second, you’ll need to determine whether you need a specific type of vehicle if your vehicle is damaged. For example, if you have a large family, you may want to opt for higher reimbursement levels toward a rental vehicle as you may need to rent a larger one, which often comes at a higher cost.
The quote you receive for coverage may also vary based on the type of vehicle you drive, where you live and your past driving experience.
Contact Us Today!
We can help you get the rental reimbursement coverage that is right for you. Call Auto Insurance Discounters today at 866-288-6545 to get started.