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Your Car Insurance Rental Car Policy

July 7, 2008

So, your car is damaged due to a minor accident. You now need to get a rental car to help you out while your own car is being repaired. How to go about doing this, ensuring it is fully covered by your car insurance?

7 Important Considerations

1. Rental Car Expense - Is It Covered?
When covered damage leaves your car out of commission, the rental reimbursement of your car insurance helps pay for your rental car costs. However, rental reimbursement is an optional coverage. Not everyone chooses to include it in their policy. Furthermore, it may not be available to all customers.

2. Your Rental Car Reimbursement Budget
Rental reimbursement coverage may be subject to a daily and per accident limit. For example, if you have $25 per day/$750 per accident rental reimbursement limits, your car insurance company will pay up to $25 per day but no more than $750 per accident for your rental car. Check coverages and limits available on your policy to find out the details that pertain to you and your car.

3. When You Can Rent a Car Under your Policy
If your car is safe to drive, reimbursement usually begins when repairs to your damaged car start. You should not get a rental car until you confirm that the shop has the necessary parts and is ready to begin repairs to your car. If your car is unsafe/disabled to drive, the insurance company can usually authorize you to get a rental car after you report your claim.

4. Car Rental Period
How long you can hold on to a rental car depends usually on the state of your own car. If your car is repairable, you may usually keep the rental car till your damaged car is back on the road, or until your coverage limit runs out, whichever comes first. However, if your car turns out to be a ‘total loss’, your auto damage adjuster will advise you when to return your rental car. Begin shopping for a replacement car asap, as the amount of authorized rental time at this point will be limited.

5. Types of Rental Car You Can Rent
In principle, car insurance companies allow you to rent a car comparable to your own. However, practically, be wary. Check your rental reimbursement limit for two reasons:
a. if the daily rate of your rental car exceeds your daily limit, you’ll have to pay the difference.
b. if your car repairs are going to take several weeks, you might be better off with a modest car. Renting a car with a lower daily rate makes your rental reimbursement limit (i.e. your total car rental budget) last longer.

6. Which Rental Car Company May You Use?
Usually you may use choose which rental car company you will use. However, insurance companies usually parter with one or more car rental companies for your (and their) convenience. This means that if you rent a car from that car rental company, the rental company will usually bill your insurance company directly after you return the rental car. If you choose another rental company, you are most likely to pay for the car rental first, and be reimbursed by the insurance company later. Of course, reimbursement is subject to your car rental reimbursement coverage.

7. Insurance for Your Rental Car
Most rental car companies will ask you to take out additional insurance from them to cover the rental car. Note that car insurance companies may not pay for this additional coverage. However, in many cases, this coverage may not be necessary. If you have both comprehensive and collision coverages on your own car policy, these coverages will usually transfer to your rental car while your car’s accident damage is being repaired. Check the details on your policy or confirm this with your agent or claims adjuster.

8. Read the Fine Print
Always refer to your policy and check with your insurance company for any specific information about your car insurance rental car coverage and other car insurance details.

By Vera Lang, BeSafeInsure.com, http://besafeinsure.com, your complete personal insurance & commercial insurance information site.

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Written by Be Safe Insure · Filed Under Car Insurance, Car Rental Insurance 

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One Response to “Your Car Insurance Rental Car Policy”

  1. Carnival of Financial Learning #9 | Financial Learn on July 27th, 2008 6:44 pm

    […] Lang presents Your Car Insurance Rental Car Policy posted at Be Safe Insure .com, saying, “need to get a rental car to help you out while your […]

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