If you have ever been involved in a car accident or been through a serious car breakdown, you know how stressful it can be to figure out how to get to work or go on with your daily activities. This is where rental car services come in handy. However, the cost of a rental car can be very expensive, and you might be wondering whether your insurance will cover it.
The answer is that it depends on several factors, including the type of insurance coverage you have and the circumstances surrounding your need for a rental car. In this article, we will explain the circumstances under which insurance can cover the cost of a rental car.
What is Rental Car Coverage?
Car rental coverage, also known as rental reimbursement coverage, is an option that you can add to your auto insurance policy. In the event that your car is in the repair shop following an accident, rental reimbursement coverage can pay for the cost of a rental car while your car is being repaired.
This coverage typically provides between $30 to $50 per day to cover the cost of renting a car. It’s important to note that rental car coverage is not included in your standard auto insurance policy, you have to purchase it as an add-on.
Does Standard Car Insurance Cover Rental Cars?
Comprehensive and collision insurance coverage does not typically pay for rental cars while your car is being repaired following an accident. In most cases, car insurance policies cover the cost of a rental car only if you have added rental reimbursement coverage to your policy.
However, there are a few exceptions where rental car coverage may be included as part of your standard policy. For example, in some states, personal injury protection (PIP) insurance is mandatory, and it may provide coverage for rental cars while your car is being repaired.
Another area to check is if your car insurance policy has an endorsement that provides rental car coverage. This endorsement may already be included in your policy, so it’s important to review your policy’s provisions to understand what is and is not covered.
If you don’t have rental reimbursement coverage, but you need a rental car while your car is being fixed, you will have to pay for it yourself. Fortunately, some auto repair shops may offer rental cars to clients as part of their services. Check with your repair shop to see if this is an option.
Does Liability Insurance Cover Rental Cars?
Liability insurance is the type of insurance coverage that pays for damages and injuries to the other party in an accident if you are at fault. This type of insurance does not cover the cost of a rental car while your own car is being repaired.
Liability insurance also does not cover damages or injuries to you or your own vehicle in the event of an accident. To protect yourself in these situations, you need to have separate insurance coverage.
What About Credit Card Rental Car Coverage?
Some credit cards may provide rental car coverage as long as you use the card to pay for the rental. However, the coverage provided by credit cards is usually secondary. This means that your regular car insurance policy would still have to be used first.
Additionally, credit card insurance coverage typically only pays for physical damage to the rental car, not liability or medical injuries to other parties involved in the accident.
How Long Will Insurance Cover My Rental Car?
The amount of time your insurance will pay for a rental car depends on the terms of your policy. Rental reimbursement coverage usually lasts for a specific number of days, typically 30 days but could be shorter or longer depending on your policy.
If you do not have rental car coverage, you will have to pay for the rental car yourself. Once your car is fixed and ready, you should return the rental car to the rental car company to avoid incurring additional expenses.
Conclusion
In summary, car insurance policies typically do not cover the cost of rental cars unless you have purchased rental reimbursement coverage. Liability insurance, which is the most basic form of insurance coverage, does not cover rental cars.
While you may be able to use your credit card to cover rental cars, it is important to remember that it is usually secondary coverage.
For this reason, it’s worth reviewing your insurance policy thoroughly to understand exactly what is and isn’t covered, so that you can plan accordingly and avoid unpleasant surprises.