Choosing Rental Reimbursement Coverage

If you have an accident, and you are at fault, you are going to need a rental car. If you are lucky enough to live in an area with a great public transportation system, you could probably get by without a rental car. Households with more than one car could also make due without rental reimbursement coverage.

Rental reimbursement generally works like this; you have a daily amount that your auto insurance company will reimburse you for your rental car, such as $50 a day with a maximum of say $800. If you rent a car for $75 dollars a day, you will be responsible for $25 a day under your rental reimbursement coverage. In most cases, renting a car for under the rental reimbursement coverage specified limit does not mean you get to pocket the excess. So if you find a rental car for $40 a day, you do not get to keep the extra $10 for most auto insurance companies.

Rental reimbursement insurance can cost as little as $20 a year. But some people who have other options for getting around may choose to forgo it. If your car is integral to your daily routine, paying an extra couple of bucks for rental reimbursement coverage makes sense.