Rental Reimbursement is an optional coverage that reimburses your car rental costs while your car is being repaired following an accident.
Cost of Coverage
Coverage is usually about $1 to $2 a month, according to the Insurance Information Institute.
Amount of Reimbursement
Generally rental reimbursement reimburses you for car rental (for instance $25 per day), and up to a certain amount per accident (for instance $750).
Coverage applies only if your car was damaged and is undergoing repairs from an incident covered by your collision or comprehensive car insurance.
It does not pay for a rental car if your vehicle breaks down or is in the shop for ordinary maintenance or repairs.
Collision and Comprehensive Insurance
Collision and comprehensive insurance are also optional forms of coverage.
Collision insurance covers damage to your car caused by traffic accidents.
Comprehensive insurance covers damage from other causes, such as natural disasters and vandalism. Comprehensive insurance also covers the car if it's stolen.
Is Rental Reimbursement Necessary?
If you have easy access to another car you should probably avoid rental reimbursement. However if you depend on the use of only one car rental reimbursement may be a sensible choice. Rental costs can be several hundred dollars if repairs last for a week or more.
Cost of Coverage
Coverage is usually about $1 to $2 a month, according to the Insurance Information Institute.
Amount of Reimbursement
Generally rental reimbursement reimburses you for car rental (for instance $25 per day), and up to a certain amount per accident (for instance $750).
Coverage applies only if your car was damaged and is undergoing repairs from an incident covered by your collision or comprehensive car insurance.
It does not pay for a rental car if your vehicle breaks down or is in the shop for ordinary maintenance or repairs.
Collision and Comprehensive Insurance
Collision and comprehensive insurance are also optional forms of coverage.
Collision insurance covers damage to your car caused by traffic accidents.
Comprehensive insurance covers damage from other causes, such as natural disasters and vandalism. Comprehensive insurance also covers the car if it's stolen.
Is Rental Reimbursement Necessary?
If you have easy access to another car you should probably avoid rental reimbursement. However if you depend on the use of only one car rental reimbursement may be a sensible choice. Rental costs can be several hundred dollars if repairs last for a week or more.
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