Always wanted car hire insurance explained? You’re in luck. Today, we’ll delve into the nitty-gritty details of car rental insurance. If you’re traveling and don’t have a car at your disposal, then you can always use a rental car. However, it is worth noting that renting a car involves more than meets the eye. Key among the issues you need to consider is insurance. You want to know that you’re adequately covered in the event of an accident. Here are some things you might not have known about car rental insurance.
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Rental Car Insurance Is Optional
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Rental reimbursement cover is not always guaranteed after your rental car is involved in an accident. This is because it is an optional cover and thus is purchased separately. Most people assume that their auto insurance automatically covers the cost of replacing a rental car. This is not usually the case. If you want to qualify for rental reimbursement cover, you need to apply for it.
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There Are Limits
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Car rental reimbursement cover comes with per occurrence or per day limit. For instance, you may be given a 25/750 limit where your insurance company covers 25% of your daily cost but not more than 750 dollars for every car rental claim. Car insurance companies will present you with different limit options to choose from.
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The Vehicle Must Be in The Garage at The Time Of Reimbursement
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Rental car reimbursement cover under your existing cover can be used as your car gets repaired after an accident or any other covered loss. You cannot use this cover for times when your car is undergoing routine maintenance checks. Therefore, if your car is in the garage due to an accident, your car rental coverage covers you up to your limit.
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It Is Usable Immediately
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Once you report a claim and your car is rendered incapable of being driven, you can get yourself a rental car immediately. This is one of the best reasons to have reimbursement cover. If you do not have rental car reimbursement cover, you end up relying on the insurance company to get you a way out as your car is being repaired. This can take a while.
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You Don’t Need Additional Insurance
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If you have collision and comprehensive coverage on your current car insurance policy, it transfers to your rental car. This ensures that you do not have to purchase additional coverage from the rental agency. Check with your agent to find out more about how this works.
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You May Not Need Car Reimbursement Cover
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If you can gain access to a second car or alternative means of transport as your car gets repaired, you probably do not need rental car reimbursement. This cover is best for people who have only one car and will want to ensure they can get a car to use in case theirs is involved in an accident.
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It Is Cheaper Than You Think
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A year’s cost of your reimbursement cover will cost you less than renting a car on a daily basis. If you are sure you may need a rental car after an accident, it is best to be covered to avoid the inconvenience caused by an accident.
