What is Rental Reimbursement Coverage (and Do You Really Need It?)

As you look through your auto policy documents, you might have seen a coverage called Rental Reimbursement. What is this? And do you really need it? 

Basically, Rental Reimbursement coverage is there to help you obtain a rental car while your car is unavailable due to a covered insurance claim.

For example, if you had a fender bender and your car is in the shop for a few days getting a new bumper.  Or after a major storm, you’ve got hail damage that needs to be repaired.

While the Car is Being Repaired, What Will You Drive?

That’s where Rental Reimbursement coverage comes into play. With this coverage, the insurance company will pay a certain amount per day (based on your policy) towards a rental car. That way, you’re not inconvenienced while the repairs are being made.

We highly recommend that you have this coverage, because if your car takes a week or more to get repaired you could save a considerable amount of money over being forced to rent a car without that coverage. However, there are a few situations where it might not be necessary.

Times When You May Not Need It

If you own multiple vehicles and could easily drive another while your car is in the shop, you may not need rental coverage.  And if you rarely drive your vehicle, don’t have a job that requires you to drive daily, and could easily stay home for a week and walk where you need to go, you may not need rental coverage either.

If you’re not sure what’s best for you, then give SAV-ON Insurance a call at 888-867-2866 to discuss exactly how much the coverage will cost you each month and what different levels are available.  We look forward to helping you choose the right insurance coverage!