Rental reimbursement coverage helps you pay for transportation expenses, such as renting a car or a public transportation fare, while your own vehicle is repaired after a covered insurance claim. It doesn't apply if your vehicle needs routine maintenance work or if you need to rent a car while on vacation. If your car breaks down and the damage was due to a covered loss, your car insurance will pay for temporary transportation costs as long as you have rental reimbursement coverage, which is usually a supplemental coverage option. Rental reimbursement coverage will cover the cost of a replacement rental car while yours is being repaired after a covered claim.
Waiting to have your vehicle repaired after an accident can be aggravating and extremely inconvenient. Fortunately, under North Carolina law, if you have a property damage claim for your damaged vehicle, you may be entitled to the cost of renting a similar vehicle for a reasonable period of time while your car is being repaired. This is known as reimbursement for loss of use or rental of vehicles. Next, we look at how rental reimbursement insurance works with your car insurance policy to see if it's worth adding to your policy.
It can only be used if you need a rental car while your car is in the workshop being repaired for a problem covered by your car insurance policy. You can rent a car that costs more than the insurance limit, but you'll have to pay the difference if the daily rate or total limit exceeds the policy limits. Many car accident victims are surprised to learn that their insurance doesn't cover the cost of a rental car while their vehicle is being repaired. This type of coverage can usually only be added when you have comprehensive and collision coverage in your car insurance policy.
If you don't have wiggle room in your budget to pay for this extra expense, you might consider adding rent reimbursement insurance to your car insurance policy. Your car insurance may be able to cover the costs of a replacement rental as long as the damage to your car was caused by a covered loss. If your car is being repaired because of an accident insurance claim, rental reimbursement coverage pays for transportation expenses, such as renting a car or public transportation fares. With rental reimbursement coverage, your car insurance can help you pay for a replacement rental car.
Rental reimbursement insurance is coverage that you add to your personal auto insurance policy and that pays the rent if your car is being repaired for a problem that is covered by the policy. For more information about rental car coverage as part of your car insurance policy, contact your auto insurance company. If someone else hit your vehicle, you can file a claim against their liability insurance, both for repairs to your car and for renting a car during repairs. Rental reimbursement coverage is optional, but it's a relatively inexpensive supplement to your car insurance policy and generally won't increase your premiums significantly.
Car insurance with rental reimbursement provides coverage for obtaining a rental car if your vehicle is damaged due to a problem covered by your policy and needs repairs. In addition, if the insurance company doesn't pay the cost of a rental car because you borrowed someone else's vehicle, then you may consider applying a damage measure based on the mileage you have accumulated on the vehicle you borrowed.