Rental Car Coverage: The Unspoken Reality

Rental Car Coverage

In the unthinkable event that you need to put in a claim to your auto insurance, many people are unaware that they are not completely protected.

Something as simple as rental coverage is often overlooked or omitted when negotiating premium coverages.
Highlights:

  • Why is replacement coverage so important?
  • Comparable replacement awareness
  • Average rental cost per month vs. out of pocket expense

Why is replacement coverage so important?

Replacement car…bottom line.

It is enough stress to have to deal with your damaged property and the claims process. Now imagine if you have to Uber back and forth, ask friends and family for a ride, or share a car.

For a couple bucks a month you can be covered. Peace of mind is priceless.

Comparable rental awareness.

Great! So you have taken the right path and decided to look into rental coverage.

Best advice, do not look for the lowest price. Investigate your options.

Most carriers base the rental on comparable size, not brand. Why is this important you may ask?

Most basic rental coverage will provide you with a replacement car. The standard fleet with most replacement car providers are makes such as Nissan, Ford, or Chevy.

These replacement cars are comparable by size but may be a big change for a customer that has all the bells and whistles. For a few extra dollars, you can obtain coverage that will replace your vehicle with something more similar to your existing vehicle.

This is an important factor when large repairs take place. If the repair shop will have the vehicle for an extensive amount of time, your comfort should not be compromised.

Most customers that have around $50-$55 per day rental coverage are able to obtain a higher end replacement vehicle such as Cadillac or Mercedes Benz.

This is also valid for SUV drivers. Most replacement SUV rentals are around $50- $55 dollars per day. Anything less may not cover the cost of a replacement SUV.

Average monthly rental costs vs. out of pocket expense.

Depending on the amount of coverage you choose, most rental coverage through your auto policy can start at around just $5 dollars a month.

These coverages will cover either per day or until a certain limit is reached.

An example would be choosing replacement coverage for $5 a month on your policy. This would generally cover a $25-$30 dollar per day replacement vehicle for up to 30 days.

The other end of the spectrum would be paying for a replacement vehicle due to no coverage. Most rental providers will give a discount to the body shops customer. Without rental coverage you will be looking to pay around $30 dollars a day for a standard replacement car. This adds up very quickly!

At the end of the day, do the math. The best decision is to obtain the rental coverage through your auto policy. Your wallet with thank you later!

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