Rental reimbursement coverage is an optional coverage available on your automobile policy. This coverage is designed to pay for a rental car if your car is damaged in a covered accident, and typically pays for these expenses while your vehicle is not safely drivable or is at a repair facility.
The “industry standard” for rental reimbursement coverage has been up to $30 per day for a maximum of $900, but if you have rented a car recently, you know this is no longer enough to cover most rental rates.
Businesses have been suffering from staff shortages and supply chain issues, and auto repair businesses are no exception. Longer repair times and delays for vehicle repair are causing clients carrying limits of up to $30 per day/$900 maximum to reach the limit of their coverage before auto repairs are complete. Clients are also finding it harder to find a rental car available at the rate of $30 per day due to the lack of inventory available at area rental car businesses.
Here are our recommendations:
Increase your rental reimbursement coverage. While coverage options vary between our partners, options include up to $40 per day with a maximum benefit of $1,200, up to $50 per day with a maximum limit of $1,500, and more. Some companies offer as much as up to $100 per day with a maximum limit of $3,000. Contact us to increase your rental reimbursement coverage limits.
If your car is drivable, wait until all needed parts are in before taking your car to the repair shop. This will allow you to get the most benefit from your rental coverage. While some insurance companies allow the total benefit amount regardless of the number of days you have a rental car, other companies limit the number of days for rental car coverage to thirty days. We want you to be able to get the most out of your coverage.
Questions? We are here to help. Contact us today.
