If you ever went through a car accident and had no vehicle to drive while your car was in the shop getting fixed, you probably wish you had rental reimbursement coverage insurance. Have you heard of this type of coverage? If not, you should continue reading to learn more about what it is and how it works. After learning these things, you might want to call your agent and add it to your policy.

What rental reimbursement coverage is

Rental reimbursement coverage is designed to provide you with coverage for a rental car if you encounter a time where you need one. The only time it offers coverage, though, is after a car accident. If you get in a collision and need car repairs, your insurance policy would cover the cost of renting a car while your car is in the shop getting fixed. You should know that the coverage only applies if the accident is covered by your insurance policy.

For example, if you have collision coverage and cause an accident, your policy will cover your expenses. Your policy will also cover the costs of renting a car during this time. If, though, you caused an accident and did not have collision coverage, your policy would not cover the cost of renting a car. It must be a covered peril for the rental reimbursement coverage to kick in.

How it works

If you experience a time when you need a rental car after an accident, you will need to talk to your insurance agent. If your policy provides this coverage, the insurance company will reimburse you a certain amount per day for a car. The amount might be $30 or more. It depends on the policy. If the rental car costs more than the covered daily amount, you will have to pay the difference.

What it does not cover

One last thing you should know is that this coverage is not designed to cover rental cars in other situations. In other words, if you decide to go on vacation and rent a car, your policy will not pay the costs for renting a car in this circumstance.

Rental reimbursement is a type of add-on coverage you can include on almost any car insurance policy. It usually does not cost a lot to add it to a policy, yet it provides you with a significant benefit if you ever find yourself in a situation where you need it. Talk to an insurance agent about it if you want more details and information.