Rental Reimbursement Coverage - a Good Defensive Game Plan
Five years ago when Tom Brady was involved in a car accident, he probably had a fleet of other cars to choose from while his black Audi S8 was in the shop for repairs. Most of us don’t have a spare car around to use if our primary vehicle gets into an accident and needs repairs. The cost of renting a car is expensive and rental reimbursement provides the defense to this unbudgeted expense.
If your daily life depends on having a car and you don’t have a spare one, we recommend rental reimbursement coverage. It is an economical way to defray the cost of a rental car while your car is at the body shop for repairs due to an accident.
While most small repairs like a dented bumper or quarter panel require only a few days, there are often delays that extend the time a car spends at a body shop. The shop could have trouble getting a car part or need a part that comes from overseas. Body shops get busy and develop back logs – a two-week wait is not uncommon. A single hail storm can generate thousands of claims in a small region, overwhelming both adjusters and body shops for weeks if not months.
We recommend having coverage for one month. With rental reimbursement coverage, the insurance company pays you a predetermined amount per day for your car rental in the event of an accident that requires repairs for your vehicle. Rental reimbursement coverage does not apply when your vehicle goes to the shop for routine maintenance.
Here are three typical coverage options with their approximate annual premiums:
Most rental car companies can set up a direct billing relationship with your insurance company, but may require a security deposit from you.
And what about protection in the rental car?
Your personal auto policy coverage follows you to a rental car. If you do not have physical damage coverage though (collision and comprehensive), you will need to purchase this coverage through the rental car company to cover damage to the rental vehicle in the event of an accident.
Relatively inexpensive, and certainly cheaper than having a spare Audi, rental reimbursement coverage is a great back-up plan.
Please contact your account manager if you would like more information.