Here is a quick tip for you that one of my subscribers asked me about recently concerning rental reimbursement!

You asked for “full coverage” on your auto insurance policy, but did that include rental reimbursement and what is that anyway?

Typically rental reimbursement can be added to your auto policy for just a few dollars a month. This coverage kicks in when you are in an accident and are liable for the damages. (In other words, you caused the accident.) If your car is in the shop for repairs, you will need a replacement car to drive to and from work etc. Rental reimbursement helps with the cost of this rental car.

Usually you can buy rental reimbursement at different levels. For example, $10 a day reimbursement for 30 days, or $30 a day of rental reimbursement for 30 days. The more coverage you buy, the more expensive this extra coverage will cost you.

If someone else hits you and they are liable for damages, then their liability insurance will pay for your rental car while your car is in the shop getting repaired. Your rental reimbursement would not kick in unless the other driver did not have insurance and you had to rely on your insurance to pay the damages.

Another time that rental reimbursement does not cover you is when you are on vacation and rent a car. This is not what rental reimbursement is used for. Some other plans with credit card companies or motor clubs offer discounts for this type of rental.

Often insurance clients assume they have rental reimbursement and only find out after an accident that they do not have it. Consult your local insurance agent and review your own policy to determine if you have rental reimbursement and if this is a coverage you want to carry on your policy. Remember, all insurance companies are not the same and differ in their overall interpretation of coverage. So check and re-check to make sure you have the coverage you need.

Philip L. Bradley is the CEO of The East Cooper Ins. Agency in Charleston, SC. He is licensed in Property and Casualty Ins and Life and Health. He is also a personal financial representative.

Please consult your own insurance and legal advisor before making any decisions concerning your own insurance or financial situation.

This entry was posted on Wednesday, March 18th, 2009 at 12:57 pm and is filed under Auto Insurance Education and Information. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.