Should I Purchase Rental Car Reimbursement Coverage as Part of my Auto Insurance Policy?

The answer to that question is...it depends. Rental car reimbursement coverage (RREIM) is an optional coverage that covers rental car expenses while your car is being repaired after an auto accident. If your car is the only vehicle in the household, it could be helpful to have rental car reimbursement coverage.

Rental car reimbursement coverage works in one of two ways. Either you cover your rental car fee upfront, and receive compensation from your auto insurance company later, or your auto insurance company is billed directly for the rental car. Sometimes the rental car reimbursement coverage amount is not enough to cover the car you rent. Usually this amount is stated as a daily limit that your auto insurance will pay toward the rental, such as $50 a day maximum. In this case you are responsible for any excess over and beyond what your rental car reimbursement coverage covers.

Some people choose to purchase this auto insurance coverage to avoid the inconvenience of being without a car while it is being repaired and the unexpected expense of renting a vehicle. Some families with multiple cars may skip rental car reimbursement coverage and make due haring another vehicle or using public transportation. Buying rental car reimbursement coverage really depends on how you use your car and the transportation options available to you.