Rental Car Reimbursement Coverage: Is It Worth The Extra Price?
Q: My car insurance company offers extra coverage called “rental car reimbursement” for an extra $30/year. Is the coverage worth it?
AIS Answer: Only you can really answer this question. For some people it’s a completely unnecessary coverage, for others that may have only 1 vehicle, this could be the right coverage for them if they don’t want to pay for a rental car out of their own pocket.
Insurance companies operate on assessing risk, and usually you’ll find that extra coverage (not including liability, comprehensive, collision, un/underinsured, medical payments and PIP) often are never used by the insured. This includes items like rental car reimbursement, towing, and roadside assistance.
It does not mean in anyway that you’ll never need a rental car when your vehicle is damaged and in the repair shop, but, you may not necessarily need this coverage if you have more than 1 vehicle or your vehicle is under warranty and being repaired for damage caused by a warranty related issue (which rental car reimbursement from your insurance company likely wouldn’t cover).
Also. Rental car reimbursement has a few catches and you’ll have to read the fine print but most give you a $25 a day allowance for as long as your vehicle is in the repair shop. If you have a warranty on your vehicle it’s likely the manufacturer will offer you a rental with 0 money out of pocket.
Take a look at the fine print on the rental car reimbursement coverage and analyze your situation. Do you need the peace of mind $30/yr offers? Is it just a wasted $30/year because you have more than 1 vehicle available? The choice is really up to you and you should always consult with a licensed insurance agent before making any changes to your auto insurance policy.
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dude, drop the coverage if you have it. It makes no sense when you can just rent a car for $30 for the few days. Just think, in like 3 years when you actually need it you’ll have easily paid for that rental car.
don’t buy rental car insurance, what a waste of money.