One of the most overlooked side effects of getting in a car accident is the fact that the rest of your life doesn’t suddenly go on pause. You’re still likely going to have to go to work, run your errands, maybe pick up the kids and just keep your schedule moving forward. But you can’t do most of those things without your car, so you’ll often have to rent one to stay on track. Renting a car isn’t exactly an inexpensive purchase, though, which is precisely why having rental reimbursement coverage is a great idea. But do you need it? Let’s discuss that very topic today!
What Is Rental Reimbursement Coverage?
First things first we need to give you the rundown on exactly what rental reimbursement coverage is. This is an optional feature you can add to your auto policy if you wish. If you opt for it, then it helps pay for the expenses associated with renting a car – in some cases, it may also cover rideshare or public transportation costs – while your vehicle is unavailable due to a covered insurance claim. Covered claims typically include collision, theft or damage from fire, vandalism or natural disasters, but things like routine maintenance and mechanical failure are not included.
When Does It Apply?
Let’s dive a little more specifically into when exactly rental reimbursement coverage comes into play. If you get rear-ended at a stoplight, for instance, and your car needs to spend a week in the body shop. You can’t go a week without a vehicle, so you rent a car. If rental reimbursement coverage, your provider will cover the cost of the rental car up to your policy’s daily and total limits. If you don’t have this coverage, you’d be left footing the entire bill by yourself — typically meaning $30 to $60 per day here in the Tulsa area. Here are a few reasons you might specifically need reimbursement coverage:
- If you rely on a single vehicle for your daily transportation needs
- If you live in an area with limited public transit options available
- If you don’t have access to borrowing a vehicle, or carpooling
- If you simply want to avoid the out-of-pocket rental costs during repairs
Is It Expensive?
We’re happy to say that rental reimbursement coverage is actually one of the more affordable add-on options available to you. The actual cost will vary depending on your provider and coverage limits, but you can expect to pay anywhere from $2 to $10 per month for coverage. To give you a specific example, a policy offering $30 per day for up to 30 days might cost around $50 per year. Generally speaking, that means you could spend less on a year of coverage than you would for a single day of renting a vehicle on your own. Plus the extra peace of mind you get is priceless.
So, Do You Need It?
Now that we’ve laid out all of the information for you, it’s up to you to decide where or not rental reimbursement coverage is something you actually need. Here are a few questions to ask yourself that should help you decide:
- Do you have a backup vehicle?
- If you do, then you probably don’t need this add on, as the likelihood of you needing to rent a vehicle is quite slim.
- Can you afford a rental out of pocket?
- If you can afford the cost of a rental out of pocket, then you might not need this coverage. But like we explained, the cost of annual coverage is typically less than a day or two of actually renting a vehicle, so it might still be worth it for you.
- Do you commute daily or have family obligations?
- If you do, you’re certainly going to need a vehicle if and when you can’t use your own, so this coverage is pretty indispensable to help you keep costs manageable.
- Do you live in a rural area?
- There aren’t nearly as many alternatives to take advantage of, such as rideshare options or public transportation, when you live in a rural area, so you might want to consider this coverage for that reason.
If you have any questions or would like to inquire about coverage for yourself, don’t hesitate to get in touch with us right here at Glover Family Independent Insurance today!