Rental reimbursement coverage enables you qualify for travel costs, such as a rental car or public transit fare, while repairing your own vehicle after a covered insurance claim. It does not apply if routine maintenance work is required for your vehicle or if you need to lease a car on holiday.

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Rental reimbursement coverage can be called "rental car coverage" or "transportation expense coverage." Usually it is mandatory on a car insurance policy, which implies you need to add it to your plan and pay additional coverage premium.

What Do Rental Reimbursement Actually Cover?

Rental reimbursement coverage enables you qualify for renting a vehicle or for alternative travel — like bus or taxi trips— but only if you need it due to a covered loss. The other kinds of coverage you have on your car insurance policy depend on when you can use rental reimbursement coverage.

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For instance, if you have collision insurance and you're in an accident with another vehicle, it can be regarded a covered loss. Your insurance for rental reimbursement may assist compensate for shipping costs while your car is being restored after the crash. If your car is in damage caused by hail, your insurer would need full disclosure on your account to assist cover the complaint. Then, while your car is in the store to fix the hail harm, your rental reimbursement insurance may assist compensate for travel costs.

Should I Add Rental Car Reimbursement To My Auto Insurance?

The main advantage of rental car reimbursement is that it gives you some peace of mind that you won't be struck suddenly by a rental car bill that could cost a few hundred bucks readily. Especially during the holidays it can be very hard to have to come up with several hundred bucks. And the price is fair, based on your car insurance, at just about $5 a month or so.

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However in the long run, rental car reimbursement can have some disadvantages you should consider before getting this extra insurance. The problem is that even $5 a month is probable to cost you more than the rental charges that you are inclined to incur. You can readily go years without ever having to rent a car while yours is in the store unless you have a bunch of crashes (in which event your insurance expenses will go up anyway). And if you saved an urgent money on a high-yield CD or savings account, you should be prepared to cope with the occasional unexpected cost of renting a vehicle.