How Does Rental Car Insurance Coverage Work?
If you are trying to choose the types of coverages you want for your auto insurance plan, one of the add-ons you could ask for is called rental car coverage. Rental car coverage is considered an endorsement on a policy, which simply means you are paying a little more for this extra coverage and here are several things to understand about having rental car coverage.
Rental car coverage is not an expensive type of coverage to add for most people. In fact, adding it to your existing auto insurance policy might only cost as little as $2 per month. In some cases, it may be as high as $15 a month, but this is rare.
What it is for
The purpose of rental car coverage is to provide you with compensation to pay for a rental car in the event that your car has damage from an accident. The damage that your car has must be from a claim on the insurance policy, though. For example, if your car simply breaks down and needs repairs for the week, rental car coverage would not compensate you. If you are in an accident, though, and need a rental car for the week, the policy would provide you with money to use for this.
How it works
The one thing you should know about rental car coverage is that it has limits. For example, most policies will only pay a certain dollar amount per day to cover the costs of a rental car. This may be $30, or it could be more or less. If it costs more than this per day, you would have to pay the rest of the bill after the insurance policy pays their portion. There may also be limits as to how many days the coverage lasts. For example, your policy might offer to pay for 7 or 14 days, but that will be all.
Why you should get it
Rental car coverage is not a type of insurance you are ever required to have, but it is a good type to have for the price, as it gives you extra protection after a car accident.
Having the right types of coverage on your car insurance policy will protect you from unexpected expenses and problems if you are ever in an accident. To learn more about rental car coverage and other types of auto insurance endorsements, talk to an auto insurance agent.
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