Rental reimbursement is a type of coverage that pays for the cost of a rental vehicle while repairs are being done on your car due to a covered loss. This coverage typically excludes fuel costs, security deposits, and any additional rental car insurance you may purchase from the rental company. It can also provide a faster refund for the rental than the at-fault driver's insurance normally would. To find out if you already have rental reimbursement coverage, check your policy statements page or call your insurance company to verify your coverage.
Collision insurance is a type of coverage that pays for damages to your car if it is involved in an accident. This type of insurance is usually required if you are leasing or financing your car, or if your vehicle suffers hail or other weather damage. Since one in eight drivers in the state of Florida is uninsured, collision insurance may be something you should consider. Rental reimbursement coverage is an optional coverage that can cover the cost of a rental car if your vehicle is damaged in a covered accident and cannot be driven.
If you need a vehicle, but your policy doesn't include rental reimbursement coverage, you may have to rent a car out of your pocket until the repair shop can put yours back into service. In some states, you can even sue the other driver for loss of use (car rental costs) even if you didn't actually rent a vehicle. If you're not sure which type of coverage is right for you, The Elephant Insurance Coverage Wizard can help you make insurance more comprehensible. Just answer a few questions and find out what's best for you.
After an accident in which your car is considered repairable, your insurance company will calculate the damage and you'll be covered for any incident that would normally be covered by your comprehensive or collision insurance. As an expert in the field of insurance, I'm often asked about the differences between rental reimbursement and collision insurance coverage. While both types of coverage are important to have, they serve different purposes and provide different levels of protection. Rental reimbursement coverage is designed to cover the cost of renting a vehicle while repairs are being made on your own car due to a covered loss.
This type of coverage typically excludes fuel costs, security deposits, and any additional rental car insurance you may purchase from the rental company. Collision insurance is designed to pay for damages to your car if it is involved in an accident. This type of coverage is usually required if you are leasing or financing your car, or if your vehicle suffers hail or other weather damage. If you're not sure which type of coverage is right for you, The Elephant Insurance Coverage Wizard can help make insurance more comprehensible.
In conclusion, it's important to understand the differences between rental reimbursement and collision insurance coverage so that you can make an informed decision about which type of coverage is right for you. Rental reimbursement covers the cost of renting a vehicle while repairs are being made on your own car due to a covered loss, while collision insurance pays for damages to your car if it is involved in an accident.
