When needing an insurance replacement car rental, most drivers assume that their personal auto policy automatically covers the cost of them renting a temporary replacement car.
Many drivers do not think about rental car insurance when they get auto insurance. Often it takes an accident
and a call to their insurance company for some drivers to find out what they actually have for coverage.
Always remember though, that this is an optional coverage. Rental car reimbursement coverage must be specifically requested and purchased when you buy your auto insurance policy.
Rental car reimbursement is offered through almost every auto insurance company. You will pay more for this option in your premium, but the cost of it is minimal in comparison to the cost of what renting a car would be for the time that your vehicle is under repair.
The cost of rental reimbursement insurance will often only add an extra dollar or two to your auto insurance premium.
If you decide to book a rental car for an insurance replacement rental, make sure that you have all of the information you need. You will usually be asked:
You will need to know whether you are paying for the rental or insurance company is paying for the rental – rates are lower for insurance companies that have contracted an agreement with the rental car company.
Make sure you know whether the cost of the rental will be directly billed to the insurance company or if you are paying the rental costs upfront and then will be reimbursed.
Many car rental companies have special insurance replacement rental rates with certain insurance companies. Check with your insurer for their preferred partners.
Since there are many types of policies and coverage, make sure to ask the adjuster handling your claim to confirm the maximum daily amount and the maximum total amount they will pay for your car rental. You are responsible for any charges over and above the maximum allowance approved by your insurance company.
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As with any rental, the renter and all additional drivers on an insurance replacement car rental must meet all drivers’ license, age and credit card requirements. For more information, see our page on Car Rental Policies.