What is Rental Reimbursement and Why You Need it

What is Rental Reimbursement?

Rental reimbursement is a type of optional car insurance coverage. It helps pay for a rental car while your car is being repaired due to a car accident or other damages covered through your insurance policy. You may need to rent a car if your own car has been damaged:

  • In a car accident.
  • By theft or vandalism.
  • By severe weather.

There are usually 2 different options when using rental reimbursement coverage:

  1. You can rent a car from an approved provider and have them bill your insurance company directly. You may want to contact your insurance provider to learn more about this option.
  2. You can rent a car from the business of your choice and pay for the cost up front. Then, you will need to submit receipts and a claim form in order to be reimbursed for the cost of the rental vehicle.

There is often a per-day and per-accident limit for rental reimbursement coverage.
For example, your rental reimbursement coverage may have a limit of $25 per day or $750 per accident. This means that your insurance policy will only pay $25 per day for a rental vehicle, and that coverage will stop once you’ve hit the $750 limit.
The cost for rental reimbursement coverage will vary according to your auto insurance company and the type of protection you select. This coverage is fairly inexpensive.
Keep in mind:
If you are considering purchasing rental reimbursement coverage, this protection only covers rentals needed while your car is being repaired for damages covered under your car insurance policy.
It will not offer reimbursement for rentals that are needed while your regular vehicle is in the shop for normal maintenance or repairs, and it will not cover rentals for recreational purposes.

Why do I need it?

Rental reimbursement coverage is beneficial if you do not have a secondary vehicle and need to travel to work or school while your car is undergoing auto repair. Even if you may have family or friends that are willing to lend you their car, car repairs usually take weeks and your chance of having an alternative car for the amount of time needed are probably low. It’s always a good idea to have alternative coverages because of this.
 
Shopping for auto, business, home, health or other types of insurance? If you have any questions or want to get a quote, get in touch with your UniAmerica Insurance agent today or give us a call at 1-310-835-3373.