Will Insurance Pay For The Rental Car During Repairs

What this article covers

How To Find Out If Insurance Will Pay For a Rental Car

Rental Car Reimbursement Coverage Considerations

A Deep Looker: How Does Rental Reimbursement Work

Alternative Coverage Options: Checking With Credit Card Companies

Other Forms Of Transportation You Can Use Then Rental Cars

Risk Of Not Having Rental Car Reimbursement

Closing Statements

Show More

What Situations Will Car Insurance Cover Rental Costs

In specific scenarios, car insurance will pay for a rental. Ethier by providing you with a rental car or covering costs.

Situations where insurance will cover rental care are:

• Car accident-related damages - If your vehicle is damaged in an auto accident and your auto insurance covers the repairs, you should also expect the insurance company to cover rental costs during this repair period.

• Insurance coverage for not-at-fault accidents - If you are involved in a car accident but not at fault, the insurance company of the person at fault may cover your rental expenses.

• Policy Endorsements - Your car insurance policy may include an addon that explicitly covers rental car costs.

Consideration For Liability-Only Policies

A liability-only auto insurance policy only covers damages and injuries you cause to others in a car accident. This type of insurance policy may not cover a rental car cost in this scenario:

• At-Fault Accidents - If you are at fault for an accident and have a liability-only policy, your insurance company will most likely not cover the cost of a rental car. As stated before, a liability-only policy is meant to cover third-party damages.

If it's within your financial scope, you should seek additional insurance coverage, such as collision, comprehensive, or separate rental car reimbursement coverage.

How To Find Out If Insurance Will Pay For a Rental Car

When determining if the insurance company will pay for a rental car, you must take into account several factors, those being:

• Type of insurance coverage - Check your car insurance policies. Comprehensive and collision coverage policies, which address vehicle damage, are more likely to include rental car reimbursement.

• Policy Limits - Look over your insurance coverage for any coverage limits related to rental cars. These limits may address a maximum daily or total limit for rental reimbursement coverage, allowing you to gauge how much rental costs your insurance company will cover.

• Optional Coverage - If your insurance company offers optional coverage, such as rental car reimbursement coverage, check if you have opted for such coverage.

• At-Fault Status - If you were involved in an auto accident and are at fault, your insurance coverage will determine whether you can cover your rental car costs. If you only have liability coverage, you'll need additional coverage.

• Claims Process - Review the claims process outlined by your insurance company.

Rental Car Law In Nevada

Understanding Nevada law can provide helpful insights into whether your rental expenses will be covered; some essential laws to understand are:

• Insurance Requirements - Nevada DMV has specific insurance requirements for drivers. It's essential to ensure you comply with Nevada state minimum insurance requirements before looking at your eligibility for rental car reimbursement.

• Nevada Liability Law - Nevada is a fault-based state, which means the at-fault driver is responsible for damages they caused in a car accident. In cases where the other driver is at fault, you can expect the other driver's insurance to pay for the rental car costs.

• Seek Legal Assistance - A car accident lawyer can help you better understand how Nevada law applies to you.

Rental Car Reimbursement Coverage Considerations

Rental car reimbursement coverage is a hidden gem in car insurance as it will provide financial assistance when using a rental vehicle.

Availability - Rental car reimbursement coverage is usually available as an optional addon to your auto insurance. Inquire with your insurance agent about adding this coverage to your policy.

Coverage Limits - Rental car coverage has specific dollar limits, which may be a daily limit or a maximum total amount. You must understand your car insurance policies and limits.

How To Purchase Rental Reimbursement Coverage

If you don't already have rental car reimbursement coverage but want to extend your coverage to include it, you must contact your insurance agent first. The agent will provide you with information such as the cost of car rental coverage.

Then, you must evaluate your insurance agent's coverage options. Consider factors such as the daily limit, total coverage amount, and any additional premium associated with the coverage.

You should also consider your current and future financial state while making evaluations.

Last, after deciding on the car rental coverage that suits you, purchase the rental reimbursement coverage; this can be done with an endorsement of your existing policy.

How To Use Rental Car Reimbursement

If you are involved in a vehicle accident and would like to use your rental reimbursement coverage, follow the three easy steps below:

• Report The Accident - When you're involved in a car accident, promptly report the incident to your insurance company. Provide all necessary details, such as needing a rental car during the personal vehicle repair.

• Work With A Rental Car Agency - After your insurance claim is approved, you will coordinate with a rental car agency to obtain a rental car. However, ensure that the rental vehicle meets the criteria listed by your insurance policy.

• Keep Documentation - Keep all records of rental-related expenses, such as receipts and rental agreements. These documents will be vital to receiving rental reimbursement.

A Deep Looker: How Does Rental Reimbursement Work

Holders of rental reimbursement coverage need to understand how this type of insurance works. Below, we provide an in-depth explanation:

• Trigger - Rental car reimbursement insurance is triggered when your insured car breaks. On this trigger, you will receive financial assistance to cover the cost of a rental.

• Daily Allowance - Often, rental coverage includes a daily allowance that specifies the maximum amount the insurance company will cover per day for the rental. You are responsible for any amount above this limit.

• Total Coverage Amount - Besides the daily allowance, rental car reimbursement may accompany a total coverage amount. This amount represents the maximum the insurance will pay for the entire rental period.

• Rental Agencies - The insurance policy will list approved rental agencies. This means you will be limited to the rental groups your auto insurance has recognized.

Alternative Coverage Options: Checking With Credit Card Companies

When considering rental reimbursement coverage, you also have alternative sources of protection you can explore.

Credit Card Benefits

Some credit cards can provide rental car insurance as a complimentary benefit for cardholders. To learn more about this, read this in-depth article from NerdWallet.

Types of Coverage

Credit card coverage can include rental car coverage, a collision damage waiver (CDW), or a loss damage waiver (LDW).

These can all help pay for repairs to the rental car in case of an accident. Ensure you receive the terms and conditions of the credit card coverage.

Requirements For Coverage

Credit card rental car coverage usually has specific requirements to be eligible. A common requirement could be using a credit card to pay for the rental and declining the rental agency's insurance options.

Limits

Credit card coverage may be limited to certain days in the rental period. It is essential to check the maximum number of days before fully exploring this option.

Other Forms Of Transportation You Can Use Then Rental Cars

If your car needs repair and you want to save money, exploring alternative forms of transportation is entirely valid. Some alternative options for a rental car could be:

• Public Transportation - This greatly depends on location and availability. Still, buses or other public transportation can be a viable alternative as they provide a cost-effective and eco-friendly way to navigate without renting a car.

• Ridesharing Services - Although ridesharing services such as Uber or Lyft have become more expensive, they may be cost-effective for shorter distances.

• Electric Bicycles And Scooters - Using an electric bike or scooter can be a zippy way to get to your destination while saving money.

• Walking - Depending on the proximity of your location, walking by proves to be a simple and healthy alternative.

• Working From Home - If your car needs repair, you can explain your situation to your workplace and ask if you can work from home until you get your vehicle back.

Addressing Situation Where Insurance May Cover Other Forms Of Transportation

Understandably, rental car reimbursement is a standard solution. However, there are situations where insurance can cover other models of transportation:

• Coverage Extensions - If your insurance policy extends to include alternative forms of transportation, you can receive reimbursement for ridesharing services or public transport.

• Particular Circumstances - The insurance company could consider covering forms other than a rental car in a unique situation. This situation could be the need for specialized transportation or special commuting needs.

To find out if you can qualify or even apply for reimbursement for other forms of transportation, consult with your insurer or an auto accident attorney.

Risk Of Not Having Rental Car Reimbursement

You must understand that rental car insurance is not a mandatory component of auto insurance in Nevada or any other state but an optional feature to use as a handy tool.

However, there can be risks when you don't add rental car reimbursement to your insurance policy. Possible risks can be:

• Out-of-Pocket Expenses - Without rental reimbursement coverage, you may need to pay the entire car cost, which could be a significant expense depending on how long you rent the car.

• Dependence on Alternative Transportation - If you don't rent a car, you will be dependent on alternative transportation options such as public transportation, which could be inconvenient in your daily life.

Closing Statements

Closing out, we hope to leave you with some key points to consider when looking into rental reimbursement coverage:

• Evaluate Your Lifestyle - Consider the effect that not having a car will have on your daily routine

• Review Your Policy Carefully - Review your existing auto insurance policy and if you should extend coverage.

• Consider Your Budget - Ensure that rental car reimbursement fits your budget constraints.

• Explore Alternative Transportation - If the cost of a rental surpasses what you want to spend, don't be afraid to dive into alternative sources of transportation.

Contact a nevada lawyer today

Your message has been received.

One of our attorneys will contact you using the number you provided.

First Name

Last Name

Back

Next

share this article