Rental reimbursement is an endorsement you can add to your auto insurance policy. The coverage covers the cost of renting a vehicle while your car is being repaired do to a covered accident. This does not cover the cost of a rental car when your car is in the shop for routine maintenance repairs. This coverage pays up to a certain amount per day for a specific amount of time.
As inflation is affecting everything these days, we have seen the daily cost of rental cars go up significantly. Review your policy to make sure the available daily limit is enough to cover the cost of the type of vehicle you will need if your car is in an accident. If you have a family and drive a 7-passenger vehicle, $30/day will probably not cut it for you. The Eric L. Ash Insurance Agency in this situation would recommend a coverage of at least $50/day or more for rental car reimbursement.
If the daily cost of the vehicle is more than the allowance you have, you can still rent the vehicle and pay the difference. The insurance carrier claims department will help with getting your rental set up.
Understanding coverages and making sure your household is protected is just another reason to have the Eric L. Ash Insurance Agency on your side.
Thanks to senior licensed agent, Rebecca Caligiuri for sharing these tips.