Rental car insurance or rental reimbursement coverage
Rental reimbursement coverage is a great way to assure you have reliable transportation while your car is being repaired after a covered accident. Even better, it is very affordable, with annual costs coming in at $35 per year on average (but not always).
What is rental car insurance coverage?
Rental reimbursement is a coverage that is available when your covered vehicle is not drivable or needs repairs following a comprehensive or collision claim. If selected as a policy coverage, rental reimbursement will provide you with a rental vehicle while your vehicle is being repaired or replaced. Again, this coverage is only available following a covered claim. Policy limits and exclusions apply. Rental reimbursement generally doesn’t require a deductible.
However, don’t confuse rental reimbursement insurance with the coverage you get when you rent a car for business or vacation travel.
How does rental reimbursement work?
When you’re ready to rent a car after a covered accident, you have a few choices:
- Option 1: You have the option to pay for the car out-of-pocket and submit the bill to Elephant directly for reimbursement. Some people prefer this option because it enables them to get the exact rental car they want or to take advantage of discount programs. Keep in mind, however, that your rental limits apply.
- Option 2: You can let Elephant arrange the car rental for you. If you do, we’ll will handle the paperwork and will pay the car rental company directly. Elephant has a relationship with Hertz and will make the arrangements directly on your behalf. In most cases, your own auto policy will cover the rental car while you drive it. One of our friendly claims agents or customer care representatives handling your insurance claim will help you understand what’s covered and what isn’t while you’re renting.
Will the at-fault driver’s insurance pay for my rental?
The at-fault driver’s insurance is required to pay for transportation while your car is being repaired. But even in cases where this is mandatory, they may not be required to pay 100% of the cost of the rental. And since it may take several days or weeks to determine fault, you may need to pay out-of-pocket and get reimbursed later.
Is rental reimbursement automatically added to all of the vehicles on my policy?
No. Rental reimbursement is added to the individual vehicle, not at the policy level.
Can I add rental reimbursement after an accident?
No, in order to qualify for a rental car at the time of an accident, rental reimbursement must be active on the policy prior to the accident.
Is rental reimbursement required?
No, this is an elective coverage. However, if you currently don’t have a reliable means of transportation, and you’re in an accident, you may want to consider this coverage.
Is rental reimbursement coverage worth it?
Rental reimbursement can be a worthwhile investment for those looking for a comprehensive insurance plan. Typically, this coverage is $35/year/vehicle (but you should talk to an agent first as this is just an estimate) making it an affordable way to protect your wallet in the long run. If you’re still on the fence, check out our blog post all about if rental reimbursement coverage is worth it.