Car Insurance Fine Print: Who Pays for the Rental?

Rental reimbursement coverage can take care of a considerable expense.  If your car is in an accident and you have to rent a replacement while you wait for repairs, are you covered for those costs?  You might want to consider this protection if it is applicable to your needs.

Rental Costs: Something to Consider

Rental reimbursement might not seem like an important aspect of your car insurance plan.  However, while it might not be necessary for you, it is important to look at rental costs that you might have to take into consideration.

According to a reliable source, you might pay $200 or $300 for a five-day rental.  A two-week rental could run in the four-digit range, though you wouldn’t likely have that long of a wait.

Along with other items in this “car insurance fine print” series, like towing and labour cover or auto glass insurance, aspects of rentals might not hit you when you are looking for car insurance.  But what if your car is in repairs for a few days?  That unexpected cost, that will be added onto others that you will certainly meet, could help to undermine your budget.

Rental Reimbursement Coverage

This type of coverage is not usually part of your policy; you will most often need to purchase it as an additional feature of your policy.

You would be covered for the rental car if your car is stolen, in repairs, or otherwise disabled due to a covered cause.  However, this is where it can get tricky: the “covered cause” can vary widely .  This is why it’s extremely important to look at the definitions and exclusions, especially in regard to this area of car coverage.

For instance, you may not be covered in the event of mechanical failure.  You must note and make sure of instances where you may or may not receive coverage.

Have Some Kind of a Plan

Do you need some type of rental reimbursement coverage?  Some drivers do, as the potential cost could be devastating, along with the “mere” inconveniences associated with needing a rental.  If you don’t have a plan for this type of event, you may need this additional coverage from your insurer.

Many drivers don’t need this cover, however.  If your car is in repair for a period of time, you might have an alternative mode of transportation.  Another car in the family, or any other way to go to and from work and other locations, might be good enough.  You would only need to worry about renting a replacement vehicle on a long road trip, business travel, and other instances in which continuing your journey without a rental might prove difficult.

Cover What You Need to Cover

As you are aware in the wide world of insurance policies, you can probably find a situation where you might need this or that type of insurance.  In regard to rental reimbursement coverage, you’ll have to decide if it’s right for your needs.  Perhaps the cost is worth the coverage and peace of mind that it would provide you and your family.

What do you think – is rental reimbursement cover worth the premium for you?

This article contains general advice about car insurance. The author has not taken into account your financial situation or needs and you should consider whether the advice provided is appropriate for your own circumstances before relying on it.

Filed Under: Car Insurance