Hey there, man, let's roll on down this lane of insurance wisdom and talk about rental car reimbursement coverage. Many people opt-out of purchasing this inexpensive coverage only to feel like the rug was pulled out from under them when they have an accident. Grab your favorite beverage and hang with me while we break it down.
What is This Rental Car Reimbursement, Man?
You might've heard this term "rental car reimbursement coverage" thrown around, but what's it all about? It's just a little something you can add to your auto insurance policy. It's not gonna break the bank, usually costing anywhere from two to fifteen bucks a month. That's a small price to pay for peace of mind.
Why Should You Dig It?
It's all about helping you pay for your rental wheels or transportation when things go south. Let’s say you’re cruisin' down the road, when bam! You've just had a fender bender and now you need a car to drive while your ride is getting patched up. That's where rental car reimbursement coverage comes in handy. It takes care of those rental car or transportation expenses, and you're not shelling out of your own pocket like a sap.
What's It Cover, You Ask?
Good question, man. You get daily and overall coverage limits. Most insurers are dishing out around 30 bucks per day and 900 bucks total. Different companies might have their own limits, but it's usually in that ballpark.
But here's the deal: You're not guaranteed the full amount. If you rent a ride for, say, 25 bucks a day, you'll get 25 bucks, not the full 30. If it's a 40-dollar cruiser, you'll max out at the 30-dollar daily limit, and it won't go over the 900-dollar total limit. Keepin' it simple, man.
Can I Use Ride Sharing Apps Instead of Renting a Car?
Oh yeah, man. Sorry I left that out. Most insurers will reimburse the cost of ride-share usage instead of an actual rental vehicle, but they're not about to pay more than the limit and they'll ask you for receipts or screen-shots of your ride-share usage and costs for the time in question.
Cool. So What's the Deal with Rental Car Costs?
When I dug-in and checked prices for economy-size rides the average was around $590 bucks for a two-week rental. But hey, if you're trying to roll in style with a bigger ride, you'll be coughing up more. The lesson: Keep it humble, and only go for a larger rental car if you absolutely need it for your daily gigs.
How Long Will You Need That Rental Car, Dude?
You’ll need it for the length of your vehicle repairs, man. Industry folks call it “LOR” (Length of Repair), and the bad news is it’s like a rollercoaster. It all depends on part availability and shop backlogs and both of those are an ever-increasing headache for shop owners and insurers alike.
According to Mitchell’s (2023) reporting on changes between results gathered in the first-quarter 2021 and first-quarter 2022, the average LOR for a ride that’s still drivable after an accident was 15.5 days in Q1 2022. That was an increase of about 40% from Q1 2021, man.
How about non-drivable cars? Mitchell (2023) has repairs to non-drivable vehicles clocked at about 26.7 days. They also clocked rental time for total loss vehicles, which came in around 18.4 days.
U.S. Average Length of Rental By State Q1 2022
Mitchell, Enlyte Group, LLC., 2023
Uninsured Dudes and Minimum Coverage
There's a bummer situation you should watch out for. Lots of folks are out there rollin' without insurance or just carryin' the bare minimum required by their state. If one of those cats crashes into you, there's a chance you'll pay out of pocket for your repair and rental car costs. It's a rug pull, man.
Compare the Digits, Dude
Before you give your insurance company a buzz, check this out. When I checked, the average LOR in Arizona was 19.3 days (Mitchell, 2023) and the average rental cost was 40 bucks a day. That's like $772 in rental costs, man. If rental reimbursement coverage costs less than that (and it probably will), it's a no-brainer, man. You gotta add it to your policy.
So there you have it, man. Rental car reimbursement coverage is like a good White Russian, adding that extra layer of comfort. Just compare the costs, see if it's worth it for your situation, and keep abiding out there on the road.
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