Do I Need Rental Car Reimbursement if I Have Full Coverage Auto Insurance?

If you have full coverage auto insurance, you may be wondering if you need rental car reimbursement. The answer is yes, as insurance will pay for a car rental when your insured vehicle suffers a covered loss. Comprehensive or collision coverage is necessary to use your own coverage right away and then have your insurance company recover the cost of the rental car from the at-fault party or your insurance company once the fault has been determined. For those with only one vehicle, most insurance experts recommend rental reimbursement coverage due to its low cost and the peace of mind it can provide.

This coverage will continue to pay for a rental car until the car is repaired or, if the vehicle was destroyed, until you've paid for your replacement. However, it won't reimburse you for renting a car while you are in the shop for mechanical problems or for routine maintenance. Like all types of car insurance coverage, rental reimbursement or loss of use coverage has limits. If only the car has rental reimbursement coverage, but the truck is at fault for an accident that requires a rental, rental reimbursement coverage will not apply.

Therefore, if you are going to buy new brakes or repair an oil leak, you will have to pay the rent of the car out of your pocket. Rental reimbursement insurance is designed to cover the cost of renting a car after an at-fault accident or other type of covered claim. Usually, this coverage will cover a reasonable replacement, meaning it can cover a vehicle similar to the one you own. For example, if you have collision coverage, your rental car reimbursement guarantee would pay for a rental car after an accident so that you can repair it. Like rental reimbursement insurance, roadside assistance is a common optional coverage that you can add to your policy with most insurers. Many insured drivers are surprised to learn that their car insurance doesn't automatically cover the cost of rent because they've overlooked the policy option known as rent reimbursement.

However, the cost of adding rental car coverage is minimal and can be worth it if used even once. When considering whether or not to purchase rental reimbursement insurance, it's important to consider how often you drive and how much money you would be willing to spend on a rental car in case of an accident. If you drive frequently and don't want to risk having to pay out-of-pocket for a rental car in case of an accident, then purchasing this type of coverage may be worth it. On the other hand, if you rarely drive and don't want to spend extra money on something that may never be used, then it may not be worth it.

Carl Somilleda
Carl Somilleda

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