Understanding Insurance Policies

Auto insurance policies cover you for different problems. Typically, you take out a base policy that matches your most important needs. You can then take out additional coverage to insure you against other events and costs. For example, you can add auto rental reimbursement coverage to a standard policy. This add-on helps you deal with any travel costs you might have when your vehicle is out of action after an insured event.

What do you need to know about rental reimbursement insurance?

1. You Get Comprehensive Travel Cover

The main aim of rental reimbursement insurance is to cover some of your costs if you need to rent a car while your vehicle is out of commission. So, if your car needs to go into the shop for repairs after an accident, then your policy helps you pay for rental car costs.

However, this coverage doesn't always just include car rental. Some policies also reimburse you for other transport costs such as cab rides and bus/train fares. This broader coverage is useful if you are likely to switch to using public transport or taxis until you get your car back. It makes sense to look for coverage that includes these costs as well.

2. Some Insurers Have Preferred Hire Car Networks

While your insurance company will usually let you pick your own car rental company, some have a preferred network. You might find it easier to use a car rental company that is in this network. If you use a recommended supplier, then their agreement with your insurer usually covers rental costs. They bill your insurer for your costs rather than charging you.

Conversely, if you choose your own car rental company, then you usually pay your hire costs upfront. You then claim them back from your insurer.

3. Your Rental Coverage Will Have Limits

Rental reimbursement insurance has limits. You can usually claim up to a certain dollar amount a day for rental costs. Plus, insurance companies usually offer coverage for a maximum number of days. For example, you might be able to claim costs here for up to 30 days.

If you want to rent a vehicle that costs more to hire per day than your limit, then you'll have to pay any extra costs. The same principle applies if you need to rent a car for longer than the maximum period.

To learn more about rental reimbursement coverage and the way it works, contact auto insurance providers.