7 things to know about rental car coverage Posted in Auto After a car accident, you have enough things to worry about. Getting to work the next day shouldn’t be one of them. We’ve all been there—and arranging alternate transportation while your vehicle is in a repair shop can be a hassle. But rental reimbursement coverage can help alleviate some stress after an accident while also saving you money. Here are seven things you should know about before buying rental car reimbursement coverage: 1. It’s optional. Rental reimbursement coverage does not automatically apply after an accident. As an optional coverage, it must be purchased separately. A common misconception is that auto insurance automatically covers the cost of a replacement rental car. In reality, you often have to select this coverage and apply it to the policy. 2. There is a limit. You’ll likely have a per day and per occurrence limit. For example, if you have a 25/750 limit, your insurance company will pay up to $25 per day but no more than $750 per claim for the rental vehicle. Most insurance companies will offer several different options, allowing you to choose the limit that is right for you. 3. Your vehicle must be in the shop due to a covered loss. Rental reimbursement coverage can be used while your vehicle is being repaired after an accident or another covered loss, not for routine maintenance or leisure. So, if your car is at the body shop after an accident, a rental car is covered up to your limit. But if your car is undergoing routine maintenance that will keep it in the shop overnight or you are renting a vehicle for a family road trip, then rental reimbursement coverage would not apply. 4. You can use it right away. After reporting a claim, if your vehicle isn’t drivable, you can be authorized for a rental car right away. Otherwise, you will be relying on the at-fault driver’s insurance company, and you may have to wait a little while before they can assess the claim and agree to pay for a rental car. With rental reimbursement coverage, there’s no waiting. 5. No need to worry about additional insurance. For the most part, when you have collision and comprehensive coverages in your auto insurance policy, it will transfer to the rental vehicle, eliminating the need to purchase additional coverage from the car rental agency. Check with your Grange agent, who will be able to tell you when this applies. 6. You may not need it at all. If you have access to another vehicle, rideshare service or public transportation in the event your vehicle isn’t drivable, you may not need rental reimbursement coverage. But if you prefer the safety net of having a rental available if you need it, you may want to opt-in to this coverage. 7. It costs less than you might expect. One year of rental reimbursement coverage will typically cost less than one day of out-of-pocket rental car expenses. Want to learn more? Talk to your local independent Grange agent for complete details on rental reimbursement coverage. Reference - Insurance Information Institute Share via: Facebook Twitter LinkedIn Email Related resources What to expect during a car insurance claim Posted in Auto Don’t stress! Car accidents happen, and your insurance provider is here to walk you through the claim process. Make your auto claim easier and more stress-free by learning what to expect during a car insurance claim. In a car accident? Helpful tips on what to do next Posted in Auto We try to avoid them, but no matter how safe we drive, what roads we take or where we live, car accidents just happen. Be prepared. Learn what to do after a car accident with this helpful guide.