Accidents happen to the best of us, and whether they’re our fault or not they can completely disrupt our careers, social life, or financial security. A car accident can damage more than just your car; it can have a massive impact on your day-to-day life.
I’m Covered, Right?
Thankfully, you have full coverage insurance, right? Of course you do. That peace of mind you have knowing your repairs will be paid for, your injuries will be tended to, and any liabilities will be covered is worth its weight in gold. While your full coverage will probably cover most of the big things, will it help your daughter get to her ballet class tomorrow? How about your job? Will your insurance drive you to your work? Unfortunately for too many people, the answer is no.
What would help in these situations is insurance that covers the prohibitive cost of a rental car so you don’t have to beg for rides from family members or borrow a car.
For many people, the greatest annoyance after a car accident isn’t filing an insurance claim or the dinged up car: It is the loss of income from either having to take time off from work after an accident because of ineffective transportation or financial setback from having to pay out of pocket for a car rental.
Unfortunately, many policyholders inaccurately believe their insurance company, in the event of an accident, will reimburse them for their car rental costs. As a matter of fact, nearly 1 in 5 individuals who find themselves in the unfortunate situation where they will be without their car for an extended period of time due to an accident inaccurately believe that they have rental reimbursement on their policy.
Many full coverage policy holders assume that car rental reimbursement is a standard part of their full coverage insurance. The fact is that rental reimbursement is often an additional insurance item that can be purchased to compliment ones full coverage policy. Many insurance companies do include this important insurance option in their more premium policies. However, those who have cut too many corners on their insurance policy might quickly find themselves in a jam if they find themselves in need of car repair. With daily car rental rates ranging from $40-130 a day, a ten to thirteen day repair schedule could mean financial fallout.
The first thing you would want to do is to understand what is actually in your policy. The most efficient and easiest way to do this is to call your insurance agent and inquire whether or not your policy includes rental reimbursement. Understand the daily limits, the fiscal limits, and whether rental reimbursement is contingent on who is at fault in the accident. Some companies only allow a set number of days per year, some only allow a certain amount of daily allowance for rentals, and some plans will not pay if the policyholder is at fault in the accident. Asking questions is the key to ensuring proper coverage.
In the event that the policy does not include rental reimbursement insurance, the policyholder should inquire as to how much such an addition would cost. Often the price is minor compared to the potential inconvenience and financial strain that one would experience in the event of an accident. A rental reimbursement policy can easily be added, and often with little to no extra paperwork. In the event that the price is too high, consider seeking out additional quotes or potentially changing insurance companies. You want to find a policy that meets all your needs at a price that is fair.