What is Rental Reimbursement?
Rental Reimbursement is an optional coverage available in many auto insurance policies. It covers the cost of renting a vehicle while your insured vehicle is being repaired after an accident or other covered event, such as a collision or theft. The coverage typically has daily and total limits, which dictate how much the insurance will pay for the rental.
In the context of car insurance, Rental Reimbursement is essential for maintaining mobility when your car is temporarily out of service. Without it, you would have to cover the cost of a rental car out-of-pocket, which can add significant expenses, especially if the repair takes several days or even weeks.
For example, suppose your vehicle is involved in a collision and needs to be in the shop for a week. In that case, rental Reimbursement coverage can help you pay for a rental car, allowing you to continue your daily activities without disruption. However, this coverage usually only applies if the underlying cause of the repair is a covered loss under your policy.
It’s important to note that Rental Reimbursement does not cover routine maintenance or mechanical breakdowns. This coverage is primarily for accidents or damages that fall under your auto insurance policy’s covered events.