Rent reimbursement is a worthwhile investment for those looking for a comprehensive insurance plan. Sometimes, paying an additional premium up front goes a long way to protecting your wallet. It's similar to the argument for avoiding a minimum coverage plan, as doing so may end up costing you more in the long run. Instead, a solid insurance plan, including collision and comprehensive coverage and rental reimbursement, is designed so that you can get back on the road as soon as possible.
Rent reimbursement coverage doesn't apply automatically after an accident. As an optional coverage, it must be purchased separately. A common misconception is that car insurance automatically covers the cost of a replacement rental car. In reality, you often have to select this coverage and apply it to the policy.
Rental reimbursement coverage does not cover gas costs, mileage, or any security deposit required by the car rental company. If your travel insurance policy includes comprehensive or collision coverage, you may not need additional coverage from the car rental company. The AAA discount for car rental applies to the base rate of the rental vehicle, not including taxes or fees, and some vehicles are excluded from the discount. Don't confuse rental reimbursement insurance with the coverage you get when you rent a car for business trips or vacations.
If someone else hit your vehicle, you can file a claim against their liability insurance, both for repairs to your car and for renting a car during repairs. Insurance will pay for a car rental up to 30 days after the accident, in most cases, as long as the customer has rental reimbursement coverage. In other words, you should consider your current insurance policies before deciding if you need rental car insurance. In general, rental reimbursement coverage is worthwhile if you think you're going to have a car accident and need a rental car for years to come.
You need some type of insurance to drive a rental car, but you only need to buy additional car insurance from the rental car company if you don't have personal car insurance or if you're traveling abroad. It can only be used if you need a rental car while your car is in the workshop being repaired for a problem covered by your car insurance policy. Also known as “rental car coverage” or “transportation expense coverage”, rental reimbursement helps you pay for transportation expenses while your vehicle is being repaired in a covered insurance claim. Otherwise, you'll trust the at-fault driver's insurance company, and you may have to wait a while before they can evaluate the claim and agree to pay for the car rental.
If you have car insurance with Travelers and use a preferred car rental company, they can bill Travelers directly for your rental car. Rental vehicle reimbursement insurance provides you with a rental car in case your car needs repairs for a claim covered by your insurance policy. However, if you don't need a rental car or public transportation if your car is in the garage, it's not worth adding coverage that you won't use. Even if you don't have rental reimbursement coverage with your auto insurance company, you may be able to get it through an extended warranty.
Rental reimbursement insurance is coverage that you add to your personal auto insurance policy and that pays the rent if your car is being repaired for a problem that is covered by the policy...