Do you need rental reimbursement coverage?

Many insurers provide up to 30 days of rental reimbursement in the terms of their comprehensive/collision policies. But, if you get into an accident and need a rental car while yours is in the shop being repaired, you might want to look into rental reimbursement coverage.

In a recent article on RepairerDrivenNews.com, Enterprise Holdings reported that they average length of collision-related rentals (LOR) rose by nearly 5 extra days for Q1 of 2022. According to Enterprise, this continues a “trend of unprecedented industry increases”.

We believe that this is important news for the consumer to be aware of. You see, the LOR will directly impact how long your insurer will feel that it is “reasonable” to reimburse you for a rental car. And it is not out of the question for an insurance company to simply stop covering the expense of paying for a rental car – even before your vehicle has been completely repaired.

There are many factors that play into how long it takes to repair a vehicle. Among the more common variables, the severity of the damage, availability of parts, and whether or not your insurance company will pay for the proper repair are all to be considered.

Obviously, a simple bumper replacement should take less time to repair than, say, a frame and/or a quarter panel replacement. These days, shops are also dealing with parts shortages that are causing backups in the time it takes to repair vehicles. And when insurance companies refuse to pay for original equipment manufacturer’s parts (this happens far more often that you’d imagine) the delays during a repair can start to add up quickly.

The best way to alleviate the stress of your insurer cutting off payment for a rental is to purchase rental reimbursement coverage. It’s important, however, to speak to your insurance agent directly – and ask them to go over the limits of their rental reimbursement coverage with you. We recommend going with the highest dollar amount add-on policies that you can get. Often costing just a few dollars more per month, the peace of mind that this additional endorsement will bring is genuinely worth it.

If you have any questions about rental reimbursement coverage, please don’t hesitate to contact us directly. While we are not insurance agents here at RR/C Collision, we certainly deal with this issue every single day, and can help you figure out what’s best for your family.