Being involved in an accident is stressful enough, but being involved in an accident without someone stepping in to take care of your alternate transportation while your car is being repaired makes matters even more challenging. That’s where having “rental car benefit” on your auto insurance policy helps you out to make your life easier.
“Rental car benefit” pays a set amount per day for you to obtain a rental car while your car is in the body shop being repaired after an accident. It’s hard to put a price on the sense of relief customers feel when they know they don’t have to worry about finding another way to get to work while their vehicle is in for repairs. And it’s tough to deal with the frustration of being in an accident without this line of coverage on your auto insurance policy.
Questions and Answers:
Q: Sounds great! But how much does it cost?
A: A basic level of rental car benefit that pays a maximum of $30 per day for 30 days adds about $3 per month to the cost of an auto insurance policy. The $30 benefit will put you in a small- to intermediate-sized car. But do consider signing up for a higher daily limit at a higher premium if you’ll need a more specialized type of substitute vehicle such as a minivan, truck, SUV, or luxury car.
Q: I just bought a brand-new car and the dealer told me that the dealership will provide me with a loaner car while my vehicle is in for service. Do I need rental car benefit, too?
A: Car dealers often provide loaner cars to their customers while their cars are in for service or mechanical repairs; they do not normally provide loaner cars to their customers for body repair after car accidents. If being without your car for a few days would be an inconvenience for you, you will likely appreciate having rental car benefit on your auto insurance policy.
Q: I’ve never been in an accident that’s been my fault. The other party’s insurance company will pay for my rental car, right?
A: Many situations work out beautifully with no problems at all: the other party accepts responsibly, he gets his insurance company on board, and things are settled quickly.
But that doesn’t happen all of the time.
Sometimes, the at-fault party has no insurance. Other times, the at-fault party does not have enough insurance: maybe just enough to fix your car, but not enough to also pay for the rental car.
What if there were multiple vehicles involved in an accident, and while we know that you are not at-fault; it will take some time before the other parties iron out which of them will be taking responsibility.
The solution is simple: carry all the insurance you need on your own policy; don’t rely on the other party.
Q: Will this cover a car that I rent if I go on vacation?
A: Again, this coverage is for a replacement vehicle while your car is in the shop for repairs after being involved in an accident. Sorry it won’t pay for your weekend convertible.
Q: If I didn’t have my car for a week or more would I take the bus, ride my bike, or do I know someone who could lend me a car?
A: If your answer is no – call us today to check and see if you have this coverage. If you don’t we can easily add rental car coverage to your auto insurance policy.