When your car gets damaged in an accident or stolen, the repair or recovery cost is only part of the story. Without another vehicle available, your only recourse may be to rent one. The good news is that your policy may already include coverage to defray the cost of a rental.
The standard personal auto policy can include a coverage called "rental car reimbursement." If you have purchased collision coverage on your car and that car is damaged in a collision, this coverage will pay for "the cost of a rental car." The same applies if you have purchased comprehensive coverage. If the car is damaged by something other than a collision, the policy will cover these expenses. The policy pays up to $30 per day, up to a maximum of $900. This coverage applies to a vehicle to which you do not ordinarily have access, such as a friend's car or a rental. Time limitations apply. If your owned or borrowed car is stolen, coverage begins 48 hours after the theft and ends when you are able to use the vehicle again or when the insurance company pays you for the loss. If the cause of loss is something other than theft, the insurance pays the expenses incurred more than 24 hours after you lose use of the vehicle. Finally, the insurance stops paying at the end of the period of time reasonably required to repair or replace the vehicle. How it works
NOTE: Not all auto insurance policies are the same. Some may pay more than $30 per day for rental costs, but they will pay only if the insured vehicle is stolen or in a collision. Check with us to find out what coverage you have. If it's not what you would like, ask if you can purchase additional coverage. We always recommend at least $50 per day to account for taxes and fees that most car rental companies charge.
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Rod Hanks
Rod has owned The Hanks Group, a Leading Nationwide Insurance agency since 1999. We help families and business owners protect their most valuable assets with a broad range of insurance products. We believe that finding the right auto, home, life and commercial insurance for our clients Starting out with 1 employee in a small office in East Dallas, The Hanks Group has grown to be one of the largest Nationwide Insurance Agencies in the Dallas Fort Worth Metroplex, with offices in Dallas and Fort Worth. Rod is always available to answer any questions about insurance or business at 214-275-8372 Archives
October 2018
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