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Will My Car Insurance Policy Cover Rental Car If I Have an Accident?

Aug 17, 2022

Auto Insurance

Will My Car Insurance Policy Cover Rental Car If I Have an Accident?

We know that car insurance covers damages caused to our cars but what if we need a car temporarily? Imagine getting in a minor car accident that does enough damage to your car that it might be tied up in the shop for a while. If you carry rental car reimbursement insurance, then there's not much to worry about. You'll have access to a rental car for a while, which at least resolves transportation issues.

What Is Rental Car Reimbursement?

Suppose you go on a camping trip and you accidentally run into a deer on the road. Such a collision can not only injure wildlife but can also damage a vehicle. Sometimes this situation puts a car in the shop for several weeks due to supply chain shortages for parts or auto shop customer demand. However, if your auto insurance policy includes rental car reimbursement, you'll at least get a rental car temporarily.

A typical rental car reimbursement plan may pay for a rental car for up to a month while the policyholder's regular car is getting repaired. The cost of paying for a rental car out of pocket can surpass $1,000 after the first month in some places. That's why it's helpful to include an extension in your auto insurance policy for rental car reimbursement.

Cost of Adding Rental Reimbursement to Auto Insurance

When you add rental reimbursement to your existing auto insurance policy, it provides you with a replacement vehicle that costs up to $50 per day. You may want to rent a smaller car, depending on your transportation needs, as you'll decide what type of vehicle to rent.

Be aware that your insurance policy may only cover a portion of the rental cost. Some reimbursement policies cost as low as $8 per year, while the higher end is around $50 per year.

Physical Damage Coverage for Rental Cars

Rental reimbursement can only be added to existing comprehensive and collision coverage. The coverage for physical damage to your vehicle or others extends to rental cars when you purchase rental reimbursement insurance. Physical damage to your rental car will not be covered, but if all you carry is auto liability coverage.

What Happens When Your Car Is Totaled?

If your car gets totaled in an accident, your insurance agency will provide you with a rental car for only 3-5 days. After that, you'll have to pay for a rental car out of your own pocket. Different insurance companies handle totaled vehicles in different ways, so be sure to talk with your agent about what happens in worst-case scenarios.

Coverage for When Your Rental Car Breaks Down

Unfortunately, rental reimbursement only covers vehicle repair following an accident. If your rental car breaks down without being in a crash, repair work will not be covered by rental reimbursement insurance.

Importance of Reviewing Your Auto Insurance Policy

The reason why it's important to review any insurance policy carefully before signing it is that there are multiple nuances involved. Many times a policy uses precise language as to what it covers. However, it's possible for people who fail to do proper research to wind up with an auto insurance plan that doesn't fit their needs. Never assume a policy covers things you expect without double-checking.

Learn More About Your Car Insurance Coverages with Humble Insurance Group

If you want to learn more about rental car reimbursement and other such interesting car insurance coverages in Seattle, WA, Contact our agents at Humble Insurance Group today. We will help customize your auto insurance policy to your personal needs while helping you choose the best coverages at the most affordable prices.

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