Wednesday, May 8, 2013

Do I Need Rental Car Reimbursement Insurance?

Protect yourself from paying to drive when your car is in the shop.
You drive to and from work every day. You take your kids to the ballgame. You go shopping.
Have you ever wondered if your car were in an accident, how you would be able to survive
without a car? We have the answer. It’s Rental Car Reimbursement Coverage to the rescue. The
good thing about car insurance is that you can buy a number of endorsements for additional
protections and rental car reimbursement is one of them.

What Rental Car Reimbursement Covers
Rental reimbursement provides financial protection for you if you need a vehicle when your car
is damaged in an accident covered by your Comprehensive or Collision coverage. Some
policies cover car rentals when your vehicle undergoes mechanical repairs. Rental
reimbursement is generally available only with policies that include collision and comprehensive

How Do I Know if I have It
The first several pages of your insurance policy are called the declarations pages. These pages
contain the declarations of the coverage you have purchased for each of your vehicles and
include the specific description of your vehicle(s). Look for a line item listed as “Rental” or “Extended Transportation,” with a dollar amount listed to the side of it. You have purchased this
insurance only if there is a dollar coverage amount next to it and there is a policy premium
amount listed for the insured vehicle. You may purchase the coverage for one vehicle but not
for another, at your option.

How Rental Car Reimbursement Works
The optional rider offsets the daily cost of a rental vehicle for a specific time period and up to
the specific daily limit you purchased. You can generally purchase limits of $20/day and
600/30days or $30/900 or $40/1200. The first number indicates the daily maximum coverage and
the second is the maximum coverage for 30 days. For example, if you purchase 30/900, the
policy would pay up to $30 per day for up to a maximum of 30 days or $900, whichever comes
Most insurance carriers have pre-arranged agreements with several car rental agencies that
may include direct bill and pre-negotiated rates. Remember, if you exceed your policy limits,
you are responsible for the difference. You should select a rental rate based on the type of car
you need. If you have a family SUV, you should select a daily rental rate for a comparable

How Do I Know When I Am Covered?
If you purchased the coverage, you are insured while the vehicle is in the shop being repaired
after an accident or breakdown, up to your coverage limits. If your vehicle is not drivable, you
may be able to get a rental vehicle before your vehicle is being repaired, but always check with
your agent first. If your vehicle is stolen, call the insurance company or your agent immediately
after calling the police to report the car stolen since most have a clause in the policy that does
not cover a rental vehicle for the first 48 hours after the reported loss.

What It Costs
The cost of rental car reimbursement coverage is generally quite reasonable: under $20 per
vehicle per year. It can bring peace of mind knowing you won’t be forced to go without a
vehicle should something happen to your car.

We Can Help
As your independent insurance agent, Dostal & Kirk can help you select the appropriate
daily rental car reimbursement limit for you. Contact us when you are purchasing your auto
insurance and we can help you find the right insurance company for you. Call (877) 562-6801
or send us an email today.

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