Rental Car Insurance
If you’ve been in a car accident before, then you most likely know the importance of having rental car insurance. Rental car insurance helps reimburse you for the cost of a rental vehicle while yours is being fixed. If you don’t have rental car insurance, and your car is in the shop for an extended period of time, then you might be stuck with a large rental bill or stuck taking the bus.
Most types of rental coverages are standard across the industry. Typically, adding rental car insurance onto your auto policy is only a matter of a few additional dollars. Trust me, it is well worth it. If your car is in the shop for 2 weeks, that can cost over $400 for a rental.
In the auto insurance industry, there are typically three different levels of rental car insurance. They are 20/600, 30/900, and 40/1200. What this means is that if you select 20/600, your limits are $20/day with a $600 maximum payout. There are some companies out there that offer additional rental car insurance if you know that you will need a larger truck or van or prefer a luxury vehicle. Some carriers limit the coverage to a total number of days rather than a total amount.
Rental car insurance can be a little tricky if your car is deemed to be a total loss. Once your auto insurance company reaches a settlement with you to settle the total loss, depending on the company you have between 3 and 5 days left to use your rental car; even if you reach a settlement the day after the accident. That means that you may have only a very short amount of time to shop and find a replacement vehicle, which can put you in a bind.
Rental car insurance is a must have for any auto insurance holder. You can’t afford to be without it!
This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.