Top Reasons To Buy Rental Reimbursement Insurance

As you're evaluating your auto insurance coverage, you may want to consider if purchasing rental reimbursement insurance is right for you.

About Rental Reimbursement Insurance

The purpose of rental reimbursement insurance is to help pay for the cost of a rental car after you are involved in an auto accident. The policy typically has a per day and per accident limit. For example, an insurance policy may state that it will pay $30 per day for a rental vehicle up to a maximum payment of $800 per accident.

If you are thinking about purchasing rental reimbursement insurance, it's important to consider that it only applies when your vehicle is in the shop for repairs that are the result of an auto accident. Rental reimbursement will not help you pay for the cost of a rental vehicle that is needed while your car is in the shop for routine maintenance.

The cost of rental reimbursement insurance varies, but this type of coverage can often be purchased for $60 or less in added premiums every six months. If you are concerned about the cost of your car insurance coverage, obtaining online quotes from several different insurance companies can help make sure you're getting the protection you need at the best best possible price.

5 Top Reasons to Buy Rental Reimbursement Insurance

Everyone has different car insurance needs, but understanding some of the most common reasons for purchasing rental reimbursement coverage will help you decide if this is a smart addition to your current auto policy.

1) You Only Have One Vehicle

In rural communities, it's common for families to have multiple vehicles. In more urban areas, however, a family may only need one car on a regular basis. Unfortunately, if you only have one vehicle, you're going to have a problem if you're involved in an auto accident and it needs to be in the shop for repairs.

2) Public Transportation Is Not Available

Taking the bus while your car is in the shop is one option to consider, but public transportation systems aren't available in all communities. In addition, the bus may not always be running when you need to get to work, attend church services, take your children to the doctor, or shop for groceries.

3) You Have a Long Commute

If you have a long commute to work or school, finding a friend who is willing to give you a ride may be difficult. In order to avoid using up all your vacation time or missing important assignments, you'll need to have a rental car while your vehicle is being repaired.

4) You Have Little Emergency Savings

Even though we've all heard the statistics that say you should have six months of living expenses tucked away in a savings account, many of us don't have a hefty emergency savings to help deal with life's unexpected surprises.

If you're living from paycheck to paycheck, having to pay for a rental car out-of-pocket can be a major inconvenience. With rental reimbursement insurance, you won't have to worry about quickly coming up with extra cash.

5) You Like to Be Prepared

Nobody likes to think about being involved in a car crash, but it's important to be prepared for the possibility. For a small increase in monthly premiums, rental reimbursement coverage can provide a great peace of mind. Being involved in an auto accident is stressful enough; you don't want to add to your worries the problem of how to pay when you rent a car.