Everything you need to know about insurance basics, like coverage types, limits, cost and more.
Rental Car Reimbursement Coverage
Accidents happen, and when they do, you’ll need all the support you can get. After all, life doesn’t just stop because your car is in the shop. You’ll need a rental, and we can help!
When an accident happens and you find yourself on two feet instead of four wheels, rental reimbursement coverage can help you keep your life on track. For instance, if your vehicle is damaged by an accident, a storm, vandalism or any other incident that your comprehensive or collision insurance covers, then having rental reimbursement means your transportation is covered while your car is being repaired.
This coverage can cover the cost for a rental car, a rideshare service like Uber or Lyft, taxis, city busses, light rails or trains. This can be a real lifesaver if your vehicle will be in the shop for a few days or even longer getting repairs. If you’d like to learn more about rental reimbursement or how to add it to your policy, your American Family agent is happy to help.
What Is Rental Reimbursement Coverage?
When your car is in the shop or otherwise not drivable due to a covered loss, rental reimbursement coverage keeps you moving by helping to pay for a rental vehicle while your car is being repaired. This is an optional coverage you can add to your policy for further protection from the unexpected.
What’s Covered Under Rental Reimbursement Coverage?
You’ll be covered up to your policy’s limit with rental reimbursement coverage.
It’s optional coverage like this that can help you to continue on with your busy life after something happens. When it comes to car insurance, rental reimbursement can help you recover and keep the stress to a minimum — even with alternative transport options in addition to renting from rental car companies. Here are some of the main reimbursement benefits you’ll get with this important coverage:
- Rental car costs
- Ride share services
- City busses
- Light rail
- Commuter trains
How much does rental reimbursement coverage cost?
Rental reimbursement coverage is a great value. One year of this coverage often costs less than a one-day car rental.
How Does Rental Reimbursement Insurance Work?
If you find yourself on two feet instead of four wheels, your rental reimbursement coverage can help pay for the cost of a car rental when your car’s damages are covered by your comprehensive and collision coverage — for instance, if your car has been damaged in a car accident, by severe weather, theft or vandalism.
There are two options when using your rental reimbursement coverage:
We’ve developed relationships with many rental car providers across the US. When you elect to rent from an approved provider, you can have them bill your insurance company directly.
Business of your choice
If you rent a car from the business of your choice, you’ll pay for the cost up front and submit receipts and a claim form in order to be reimbursed for the cost to rent the vehicle.
Typically, there is a per-day and per-accident limit for your rental reimbursement coverage. This means your insurance policy will pay a certain amount per day for a rental vehicle while your car is in the shop, and once you’ve reached the per-accident limit, the coverage will end.
So, if you’re expecting repairs to take a while, it would be wise to choose a lower-cost vehicle to make sure your coverage doesn’t run out before the vehicle is repaired.
What’s Not Covered By Rental Reimbursement Coverage?
Though rental reimbursement coverage is a life-saver in most cases, it does not apply when your car is undriveable due to a loss not covered under the policy. For example, when your car is in the shop due to a mechanical breakdown.
Why Do You Need Rental Car Coverage?
Not convinced you need this coverage? Here are some reasons why adding rental reimbursement coverage to your auto policy is a great idea:
- Daily rental costs add up fast, and your car could be in the repair shop for up to two weeks.
- A year of rental reimbursement coverage typically costs less than a one-day car rental.
- You choose the level of coverage that works for you, giving you more control over what you pay. That means you can drive a vehicle that’s just right for your unique lifestyle!
Trusted Partnership With Rental Car Agencies
Because we believe in providing the very best service and support, we’ve partnered with Enterprise Rent-A-Car to give you the experience of two trusted brands working together to keep you on the road.
Get Auto Rental Reimbursement Coverage Today!
When it comes down to it, putting your dreams on hold is not an option. The right time to get Auto Rental Reimbursement Coverage is before you need it — and your American Family Insurance agent can help! Connect with them to add this smart protection coverage to your auto policy. Find out how you can save on your premium with auto insurance discounts.
New to American Family? See why you should choose us as your car insurance provider and get a quote.