Rental Reimbursement Coverage

Pays: A rental car if your car is being repaired for covered damage.

Covers: You and your family members.

This is the coverage that provides you a rental vehicle if your insured vehicle was in an accident or “other than collision” loss and is generally handled on a reimbursement basis. This means that you pay for the rental vehicle up front and submit your receipts or proof of rental and your insurance company will reimburse you for this expense. Keep in mind that the insurance company can set up a direct billing for you as a courtesy but it really depends on their philosophy regarding rental reimbursement. The amount they will pay is going to be based on what is considered to be reasonable rental as it relates to the amount of time it will take to repair your vehicle.

There is also a limit on rental reimbursement and is as follows: (See Rental Cars)

The rental limit is stated as $20 daily for 30 days not to exceed $600. This means that you can only be reimbursed for $20 each day for a period of 30 days and not to exceed $600 in total rental expense. This also applies to a theft situation when you have no rental reimbursement coverage. The rental reimbursement limit is not automatically paid in full and only reasonable rental will be considered.

Rental reimbursement does not apply if your insured vehicle was not in an accident or “other than collision” loss.This means that it cant be used for mechanical breakdown or personal use.

If you do not have rental reimbursement coverage and you are at fault in the accident, there would be no rental car provisions for you. If the accident was the other party’s fault, that insurance company would be responsible for the rental car provision.

Please note: your insurance company’s philosophy regarding rental car reimbursement may vary and different limits and coverage may apply.