What You Need to Know About Car Insurance and Rental Car Reimbursement
You’re a careful driver, but you can’t control what other people do on the highway; which is how your car was damaged when it was hit by an SUV. Fortunately, insurance will cover the repairs to the damage. But while your car is in the shop, the only way you can get around is by renting a car. How much is this unexpected expense going to add to your monthly budget? Absolutely nothing, if you have rental car reimbursement insurance.
What is Rental Car Reimbursement?
When you lose the use of your vehicle because it is being fixed, you may need to rent a car to continue to get around, especially if you don’t have a second vehicle and public transportation is inconvenient or non-existent. Here are a couple of things to know about this coverage:
If the damage to your car was due to a car accident, bad weather, vandalism, or theft, the repairs are typically paid for by your car insurance through comprehensive or collision coverage.
However, your rental car may also be paid for if you have rental car reimbursement insurance, which is typically optional. Note that this coverage is different from rental car insurance, which is coverage that protects you if a rental car you have is damaged or stolen.
How Does This Work?
You have two ways to take advantage of rental car reimbursement coverage:
The most convenient method is to use a provider approved by your insurance company. The provider can then bill the insurance company directly, so you do not incur any out-of-pocket costs.
You can also choose to rent from any company you choose, such as one where you have a reward membership. After you pay for the rental, you can submit receipts and a claim form to your insurance company who will then reimburse you for the expense.
You need to rent a vehicle that is similar to the one being repaired, and rental coverage is usually limited by day or by accident. Keep in mind that the rental is only covered for repairs to damage covered by your car insurance. If your car is in the shop for regular maintenance, any rental cars will not be paid for.
Are You Covered in Colorado?
Colorado law mandates that all drivers carry minimum car insurance coverage of $25,000 per person and $50,000 total per accident for bodily injury liability, and $15,000 for property damage liability. Also required is $5,000 of medical payment coverage, which can be rejected but only in writing.
Rental reimbursement coverage is optional but can be packaged with your coverage.
Where Else Are You Covered?
If you have rental reimbursement coverage in Colorado, it applies to rentals during covered repairs for anywhere in the contiguous United States.
Don’t confuse rental car insurance with rental car reimbursement. Contact us at Kyle Insurance Group - Affordable American Insurance to speak with our team about any questions on your coverage.