What does rental reimbursement insurance provide?
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Asked July 27, 2010
Rental reimbursement insurance pays for some or all of the cost of renting a vehicle when yours is not longer drivable. The specifics of the plan will be different from one insurance company to the next, but it generally pays a fixed daily amount, and allows up to a to certain dollar value before the reimbursement is no longer valid. For example, your policy might be $35/$1000, which means you will be reimbursed for $35 a day until the vehicle is repaired or the total rental value equals $1000. You are responsible for any costs over the daily limit or beyond the maximum limit of the plan.
Rental car reimbursement will not pay for renting a car for a special event or purpose. It only covers payments on vehicles that you have to rent because yours was damaged in an accident or stolen. If the car breaks down, your rental car reimbursement plan will not help you with rental car costs while your vehicle is being repaired.
This type of insurance rider will only help under certain circumstances, but having the coverage when it is needed can save you hundreds of dollars in car rental fees. You may not use the coverage for several years, but if it is necessary just one time it will probably pay for itself. It will not help you rent an impressive sedan for the family reunion, but it can make sure you have a way to get back and forth to your job.
Answered July 27, 2010 by Anonymous