Having to deal with repairs after a car accident is already stressful, but you also have to worry about how to get around while your car is in the shop. Getting a rental car is a great option, but it can be financially taxing on top of repairs. You may wonder, “Will insurance pay for a rental car during repairs?”
This blog will guide you on what rental reimbursement is and how to be eligible for coverage from your insurance company.
Rental Car Coverage
What is Rental Reimbursement Coverage?
Rental reimbursement coverage is a type of auto insurance that pays for a rental car while your car is being repaired due to a covered loss (like an accident). This isn’t included in all car insurance policies and is usually an add-on. Knowing how this works and what it covers can be super important if you use your car daily.
How does Rental Reimbursement Coverage Work?
When you have rental reimbursement coverage, check with your insurance provider to understand the details of your coverage. The insurance company will pay you back for the cost of a rental car while your car is in the shop. Usually this means you rent a car out of pocket first, then file a claim with your insurance company for reimbursement. The coverage has limits too, including a daily maximum and a total limit for the rental period. For example, a policy might cover up to $30 per day, with a total limit of $900.
Process
The process is simple. Once your car is in the shop, you rent a car, keep all receipts, then contact your insurance company to file the claim. You’ll need to provide documentation, like the rental receipts and info about the covered loss. Make sure the rental costs are reasonable and according to your car insurance policy.
Benefits
Rental reimbursement coverage is good because it gives you a car to use while yours is being repaired so you don’t have to disrupt your daily routine. But be sure to read your policy to know the specifics and limits. Some policies only cover rentals for accidents, not for regular maintenance or mechanical issues.
What Affects Rental Car Coverage?
Type of Policy
The type of policy you have determines if rental car coverage is included. Rental reimbursement coverage is usually an add-on to comprehensive or collision coverage policies. If you only have minimum liability coverage, you’ll need to buy rental car coverage separately. Know your policy and what’s covered to avoid surprise out-of-pocket costs.
Cause of Loss
The cause of the accident is a big factor in rental car reimbursement. Policies usually cover rental costs when your car is damaged due to a covered loss (like an accident or theft). But if your car needs repairs for reasons not related to an accident (like routine maintenance or mechanical issues), rental reimbursement coverage doesn’t apply. Always read your policy to know what’s covered.
Who was at Fault?
Whether you were at fault in the accident also affects rental car coverage. If you were at fault, your liability coverage won’t pay for your rental car. In that case, you need rental reimbursement coverage. If another driver was at fault, their liability insurance should cover your rental car costs. However, having your own rental reimbursement coverage ensures immediate access to a rental vehicle without waiting for claim resolution. This can be a complicated process and may require an attorney to make sure you get fair compensation.
Policy Limits
Rental reimbursement coverage has limits, including a daily maximum and a total limit for the rental period. For example, a policy might cover up to $30 per day with a total limit of $900. Know these limits to manage your costs. If you go over these limits, you’ll have to pay out of pocket.
Personal Driving Record
Your driving record can affect the cost and availability of rental reimbursement coverage. A history of claims or traffic tickets can result in higher premiums or limited coverage. Insurance companies rate risk based on your driving record so a clean record can help you get better coverage at a lower cost.
Alternative Transportation
Rental car reimbursement coverage can be crucial when considering alternative transportation options. If you have public transportation, a second car, or carpool options, you might not need rental coverage. But if you rely on your car for daily activities and don’t have convenient alternatives, rental reimbursement coverage is more important.
Cost of Rental Car Coverage
What Affects the Cost?
The cost of rental reimbursement coverage varies. The main factors are the level of coverage you choose, your insurance company’s rates and your personal driving record. Higher coverage limits mean higher premium. For example, a policy that covers up to $50 per day for a rental car will cost more than one that covers only $30 per day. Insurance companies set their rates so it’s good to shop around.
Limits
Rental reimbursement coverage has limits, both daily and total. For example, a policy might cover up to $40 per day, with a total limit of $1,200. These limits affect your premium cost. Policies with higher daily limits and total caps cost more. Know the cost of the premium and choose coverage that meets your needs without extra expense.
Driving Record and Vehicle
Your driving record and vehicle type also affect the cost of rental reimbursement coverage. A clean record means lower premiums, a history of accidents or claims means higher costs. The type of vehicle you own also affects the premium. Expensive or high-performance vehicles cost more to insure, including rental reimbursement.
Insurance Companies
Different insurance companies offer different rates for rental reimbursement coverage. Shop around and compare quotes from multiple companies to find the best rate for you. Some companies may offer discounts if you bundle rental reimbursement with other types of coverage like comprehensive or collision. Compare those options to get the best coverage. Additionally, understand the differences between rental car insurance and rental reimbursement coverage to ensure you are adequately protected.
How to Make Insurance Pay for a Rental Car During Repairs
Policy
To be eligible for insurance to pay for a rental car, you must have this add-on in your auto insurance policy. It’s not automatic and requires an extra premium. Check your policy or talk to your agent to make sure you have this coverage. Rental cars are typically covered in scenarios such as after an accident, theft, or during routine maintenance.
Covered Events
Rental reimbursement only applies to repairs from covered events like accidents or theft. Not for routine maintenance or unrelated mechanical issues. Know what your policy considers a covered loss.
Following Limits
Your policy has limits for rental reimbursement, usually a daily maximum and total cap (e.g., $30 per day up to $900). Keep all rental receipts and documentation to submit for reimbursement so costs match your policy.
Filing a Claim
Notify your insurance company as soon as possible after an incident that requires repairs. Provide all required documentation, including rental receipts and repair estimates. Clear and timely communication helps the reimbursement process.
Policy Review
Review your policy regularly to make sure your coverage meets your needs. You may need to adjust your policy due to changes in your vehicle or driving habits. Keep your policy up to date so you have rental reimbursement coverage when you need it.
Talk with an Experienced Atlanta Car Accident Lawyer!
Dealing with insurance and trying to get the coverage you need can be frustrating. To ease the situation, you need an experienced Atlanta car accident attorney by your side.
At The Weinstein Firm, we’re more than happy to guide you through this process to get the compensation you deserve. Contact us for a free case evaluation at 770-HELP-NOW!
