1. What is Rental Reimbursement?

An auto accident can happen at any time and anywhere. Having auto insurance is extremely important to getting your vehicle fixed. But what if you won’t have a vehicle for awhile while the repairs are being made? That is where having rental reimbursement insurance comes in handy. Rental insurance is not only convenient, but can save you money on car rentals.

Rental reimbursement is offered through almost every auto insurance company. It is always an optional insurance, which means you will pay more for it in your premium. However, the price is minimum compared to what renting a car will be while yours is being fixed. When you are selecting rental insurance, make sure to think about the size and model of the vehicle you would need, especially if you have a large family and need to have a lot of room.

In most cases, the deductible on your own insurance policy would have to be paid if you are involved in an accident in the rental car. After that is paid, the insurance will cover the rest. This will include the use of a rental car, usually for a set period of time. Talk to your insurance company to understand how long you can rent a car for if needed, and just what your rental insurance covers.

2. Rental Insurance

There are many questions one may have when driving a rental vehicle. Insurance is an important factor to consider when driving a rental car. Most people want to know whether they need to have insurance when they drive a rental car or truck. Many times it depends on how much insurance you have on your own vehicle. Having coverage and deductibles on your own vehicle will be enough to cover a rental car. You will need to talk to your insurance carrier to see just how much they will cover. Typically, having comprehensive and collision on your auto will cover a rental vehicle that becomes damaged in an accident. Make sure to find out if the collision coverage on your own auto insurance policy will also cover a rental.

With all insurance coverage, there are specific lengths of time that you can rent a vehicle and still receive rental reimbursement. Your contract will state just how long this may be. It can depend on what happens to your car, as well; if it is being fixed, if it was totaled or if it was stolen. Talk to your insurance company or check your contract to find out the length of time you will have to rent a vehicle. Most companies allow a generous amount of time to rent a vehicle while yours is being fixed.

3. Rental Reimbursement after an Accident
A lot of drivers do not think about rental insurance when they get car insurance. It takes an accident and a call to the insurance company for some to find out just what they actually have. Unfortunately, many people do not realize that they have not chosen the rental insurance when they started their car insurance premium.

Rental reimbursement insurance can be available for a very low fee on your auto insurance policy. Typically, it costs anywhere from $1 to $2 extra a month. It may not seem like a needed extra at the time you get your policy, but if you are in an accident and need to rent a car, the money for that adds up fast. Even if you do not have an accident for years, having rental insurance can still pay for itself if and when you need it the most.

4. Renting without your own Auto Insurance
You can still rent a vehicle even if you do not have rental coverage on your own insurance, or even if you don’t have insurance at all. You can get coverage at the car rental business, or you can even buy a non-owner auto liability insurance policy for the rental vehicle.

One coverage is called collision damage waiver insurance. This is sometimes also called a loss damage waiver. Having this insurance will make you financially not responsible if your rental vehicle is stolen or in an accident. There are exceptions about this insurance, however, if you are found to have caused an accident by speeding or by driving under the influence. Collision coverage on a rental car will cost anywhere from $9 to $20 a day, depending on the company.

Liability insurance is an extra coverage you can purchase on a rental car that provides up to $1 million for the length of time the car is rented. By law, a rental business is required to offer the minimum level of liability that is required by their state laws. This coverage is convenient to own if you do not own your own vehicle and rent cars frequently. It can cost the same as collision, although it can also be purchased by the year if one rents cars frequently, in order to save a good deal of money on rental cars.

5. Non-Owned Auto Liability Insurance
Many people do not own their own vehicles, but rent ones from companies often. Buying non-owned auto liability insurance can be an excellent idea to save money. Instead of purchasing the liability coverage that the car rental company offers each rental, non-owned auto liability coverage can be bought from most any car insurance company.

This will cover a driver for damage caused to another driver’s car, liability for injuries to their passengers and driver, in the case of an accident. This policy can also help provide medical coverage for both the driver and passenger of the rental vehicle. Underinsured and uninsured coverage is also covered with this type of insurance. This will help pay for the costs associated with an accident involving a hit-and-run or a driver with little or no insurance coverage. This type of non-owned auto insurance does not provide any collision coverage, however. If the rental car you are driving hits another car or object, you will be responsible for the damages. A credit card may also cover collision insurance if you rent the car using their service, so it is a good idea to check with them first.

Non-owned auto liability insurance can be the best way to save money if you frequently rent cars. It can be purchased from most auto insurance companies for about $300 a year.

6. Tips for Auto Rentals
When you need to rent a car, it is important to ask a few questions to determine if it is necessary. First, determine the cost of renting a vehicle versus riding a bus to your destination or taking a cab. Typically, renting a car may be much cheaper, although you will have to factor in gas, mileage, and parking as well. Next, call in advance as soon as you can to get the best rates possible, and to ensure that you get the type of car you want. Make sure the vehicle you are renting will have enough room for you and whatever family or friends will be with you. If you can only drive an automatic engine, be sure that is what you are renting. If you are flying in to a place, check out the airport car rental facilities. Transportation there is usually free, and the rentals can be much cheaper since they do more business. You may also qualify for a combined discount using your airline ticket, or by renting a hotel room as well.

Before you rent, talk to your personal insurance company. Find out exactly what they will cover if you rent a car. You will want to be protected all the way around, no matter what happens while you are driving. If you are making the reservation with a credit card, check to see if there are any rental insurance options available through them.

You can talk with your state insurance department if you have any concerns or questions regarding your insurance or the companies you are dealing with.

7. Fuel Purchase Options on a Rental Vehicle
Most car rental agencies should fill up the tank when they rent the car to you. Be sure to check before you leave the lot if this is so. When you rent a vehicle, many companies ask if you want to purchase a “fuel purchase option”. This can rid you of the need of bringing the car back with a tank full of gas, which is typically required. This is a great option if you are in a hurry when you plan on bringing the car back in. One problem to this option is you may end up purchasing some unneeded gas when you bring the rental car back with gas in it.

The advantages of this option is that you don’t have to stop at a gas station right before bringing the car back in. You won’t be required to buy fuel from the car company, which will be at a highly inflated price most of the time. If you purchase this option in the beginning of your car rental agreement, the company will charge you comparable market prices for the gas in the car. Be sure to ask if this is an option, if you believe this is beneficial to your situation.

8. Facts about Rental Insurance and Rentals
Make sure to understand fully what your rental quote includes when you are given it. Many companies will just tell you the base rate, and not extras, such as sales tax, insurance costs, fees and surcharges. When renting a vehicle, be sure to find out if there is a fee to drop the vehicle off at a different location than the one it was picked up from. If you drop a car off a long distance from where you got it, the fees may be extraordinarily high.

To get the best rate for a car rental and car insurance on it, try to make a reservation in advance for it. You can also get a better rate by reserving your car at a weekly rate instead of a daily one. Check to be sure what the company defines their week as; some are 5 days, others are considered 7.

If you have children to transport, you can ask your car rental company about child safety seats. Many companies have limited seats, so be sure to call in advance. There is typically a fee associated with this type of rental, usually from $5-$6 a day or more. Check your state laws to be sure of the child seat laws in the state you will be traveling in.

9. Rental Reimbursement Coverage for Equipment
A little known fact about rental reimbursement insurance is that it may be obtained on equipment, too. This is a good idea for independent contractors and workers. Rental reimbursement can cover the cost that comes with renting a replacement tractor, trailer, or truck when damage is done to your personal piece of equipment. There are many advantages to this coverage. Usually, no deductibles apply. Payments are typically equal to the area that you live in-whatever the costs of a short-term rental piece are. This limit might be increased to include mileage, depending on the company. Most companies allow flexibility in the number of days you are covered and what days you need to use the rented equipment.

You must make sure that the piece of equipment is covered by the type of coverage that you have. A substitute piece may be used in place of what you own. Typically, a company will provide rental reimbursement up to the amount of their specified limit; if the cost is less, then the insurance will pay the lesser amount. Talk to your insurance carrier about this type of rental reimbursement insurance, or the company that you have bought the equipment from. It can save you money in the long run, especially if you use a certain piece a lot for work-related issues.