When it comes to car insurance, there are two types of coverage that can help you in the event of an accident: rental reimbursement and comprehensive coverage. Comprehensive coverage is a type of insurance that covers damage to your car caused by events such as hail, theft, or vandalism. Rental reimbursement coverage, on the other hand, is an optional coverage that can cover the cost of a rental car if your vehicle is damaged in a covered accident and cannot be driven. To add rental reimbursement coverage to your policy, you usually also need comprehensive and collision coverage.
This type of coverage typically covers the cost of a rental car up to a certain amount in dollars per day for a specified number of days. Without this type of coverage, you may be responsible for the cost of a rental car if your car can't be driven after an accident. Your personal liability insurance will cover other people's medical expenses and repairs to other people's property as a result of an accident you caused in your rental vehicle. The USAA also offers rental vehicle reimbursement coverage, which helps pay the cost of renting a car while your personal vehicle is being repaired for a covered claim.
If you already have a personal car policy with the USAA that includes liability, comprehensive and collision coverage, this insurance will likely be extended to cover your rental car. Even if the other driver's insurance pays for your rental car, it may be easier to rely on your own rental coverage. While your car is being repaired, you can file a liability insurance claim for damage to the at-fault driver's property, or use your own rental vehicle reimbursement coverage if the fault isn't immediately clear. In addition, these figures reflect a scenario in which your car requires time-consuming repairs, making you need alternative transportation for several weeks and maximizing the benefits of rent reimbursement. If your car is destroyed in an accident, you have 30 days or the maximum number of days that your insurer sets for rental reimbursement coverage to replace your car. In addition to fault coverage, extended warranty providers often include rent reimbursement coverage in their contracts.
If you don't have either type of coverage, you can take out personal accident insurance through the car rental company. You'll also want to report the incident to the rental car agency and arrange for a replacement rental vehicle. Don't confuse rental reimbursement insurance with the coverage you get when you rent a car for business trips or vacations. Customers should also check with their insurer to see if the insurance company will have to reimburse them or if the rental company can bill the insurer directly. Rental reimbursement and comprehensive insurance are two important types of auto insurance that can help protect you financially in case of an accident. Rental reimbursement covers the cost of renting a vehicle while your own is being repaired due to a covered claim, while comprehensive insurance covers damage caused by events such as hail, theft, or vandalism.
Understanding these two types of auto insurance can help you make an informed decision about which type of policy is right for you.