Introduction:
Getting into a car accident has always been an unfortunate happening. Considering the physical or financial complexities involved, it's no wonder that car accidents are considered one of the top causes of stress in the United States.
One of the most common concerns for people after a car accident is how they will be able to manage their daily chores while the car is getting repaired in the shop. This is especially true for those who rely on their car to get to and from work. That's where rental reimbursement auto insurance in Beaumont comes in handy. This type of coverage can help you pay for a rental car while your car is being repaired, so you can still get to work and take care of your other responsibilities.
Keep reading this article to learn more about rental reimbursement auto insurance, including when it's worth getting and how to find the best policy for your needs.
What is rental reimbursement auto insurance?
Rental reimbursement auto insurance is a type of coverage that helps you pay for a rental car while your car is being repaired. Rental reimbursement is only applicable when you have collision or comprehensive coverage on your car.
The purpose of rental reimbursement auto insurance is to help you maintain your routine after a car accident. This type of policy can be especially beneficial to cover your transportation cost, such as a rental car or even the public transportation fare, while your car is in the shop.
What Does Rental Reimbursement Typically Cover?
When you have met with an unpredictable accident on the road and your car needs to get repaired in the workshop, rental reimbursement auto insurance comes to your help. This type of policy covers the cost of renting a car so that you don't have to worry about getting to work or other important places.
Rental reimbursement typically covers renting a car for up to 30 days. However, keep in mind that this coverage is only available if you have a collision. Similarly, when the car has met with an accident due to hail damage, you must have comprehensive coverage to be eligible for the rental car reimbursement.
How Much Does Rental Reimbursement Auto Insurance Cost?
The cost of rental reimbursement auto insurance varies depending on a few factors, such as the insurer, your state, and the type of car you're driving. However, the average cost of this type of policy is around $30 to $40 per day.
However, the Brownsville auto insurance provider can bear the maximum coverage limit is up to $900. If you want more than this, you need to pay for the additional cost out of your pocket. Every insurance company has separate coverage limit policies.
Specific Points to Take Care of While Opting for Rental Reimbursement Coverage:
- Auto insurance companies also pay for the transportation expenses that are generally not from the rental cars. This might include the taxi fare, bus fare, or train fare.
- Rental reimbursement insurance usually doesn't have a deductible. You don't have to pay anything from your pocket to get this coverage. However, you have to pay the deductibles levied on coverages such as collision or comprehensive.
- It is a general norm that you have to pay first, and then you can get reimbursed from the insurance company. The exception to this general rule is if the insurance company has a specific type of partnership with rental car companies. In that case, the rental company can directly issue the bill to the insurance company. You also don't need to pay anything upfront and then get reimbursed.
- For antique and classic cars, rental reimbursement coverage is usually not available. So, if you are driving any of these cars, you will not be able to get the rental reimbursement coverage in case of an accident.
- You cannot relate rental reimbursement coverage with rental car insurance. Both are two different terms, and they should not be confused with each other. Rental reimbursement auto insurance is a type of coverage that helps you pay for a rental car while your car is being repaired. At the same time, rental car insurance is bought when you rent a car for vacation.
FAQs n Rental Reimbursement Coverage:
What if someone else caused an accident and I have to rent a car?
You can claim auto liability insurance for your car repair, and you can claim rental car insurance as well for covering the rental cost expense in the case when others crash into your vehicle. Some states even allow for suing the driver at fault for the accident.
Do I need to buy the rental agency insurance if I rent a car?
Generally, your personal auto insurance policy coverage will transfer with you to any rental car you use. However, if the rental company has its insurance, you may not need to buy their policy. Check with your insurance company to see what's covered.
People also choose to buy the rental company's collision damage waiver (CDW) or loss damage waiver (LDW). By this, they don't have to claim for collision or comprehensive damage on their car insurance policy.
When can Rental Reimbursement coverage be applied?
Rental Reimbursement coverage is available only when the car is in repair after the accident or for another covered loss. It is not applicable when the car is undergoing routine maintenance.
Is rental reimbursement insurance worth it?
If you don't have alternative transportation options like a friend or family member with a car you can borrow, rental reimbursement insurance can be a lifesaver. The coverage can also be helpful if your vehicle is in the shop for an extended period.
However, since rental reimbursement insurance usually doesn't have a deductible, it is worth considering buying this coverage even if you don't think you'll need it. Just in case!
Takeaway:
So, now you can go for rental reimbursement insurance without hesitation if you want to be reimbursed for the rental car expenses in case of an accident or covered loss. It is worth considering this coverage by comparing the auto insurance quotes online, even if you don't think you'll need it, as there is usually no deductible. By comparing the quotes before buying the policy, you will be in a fair deal.
However, your auto insurance policy also covers rental cars. For this, read the rental reimbursement insurance policy papers carefully or talk to an insurance agent catering to clients across various cities of Texas such as El Paso, Victoria, Harlingen and others.
