Imagine sitting at a red light in Florida, waiting for the light to turn green. Suddenly, you feel a jolt from behind as another car rear-ends you. Your heart races as you step out of the car and assess the damage. Thankfully, no one was injured in the accident, but you can’t say the same about your car.
When your car gets damaged in an accident or is stolen, it can be a real headache trying to figure out how to get around without it. And if you take into account the high incidence of car crashes in Florida, it makes sense that rental reimbursement coverage has benefits. Still, you may ask yourself, “is rental reimbursement worth it, and should I add it to my policy?”
As an independent insurance agency serving Boca Raton and the surrounding areas, the licensed insurance professionals at The Gordon Agency get this question from time to time. Read on to learn more about rental reimbursement coverage and whether it’s a good idea to add it to your Florida auto insurance policy. Don’t hesitate to contact us at (561) 988-3330 for a quote or to review your existing policy.
What is Rental Reimbursement Coverage?
Rental reimbursement coverage is an optional add-on to your auto insurance policy that pays for a rental car while your car is being repaired after a covered claim. This coverage can help you continue your daily routine without paying for a rental car out of pocket.
How Does Rental Reimbursement Coverage Work?
Rental reimbursement coverage typically kicks in after you have made a claim for the covered damage to your personal vehicle. The reimbursement amount can range from $20 to $50 per day, and the length of coverage can range from a few days to several weeks, depending on your policy and the extent of the repairs needed.
Some insurers have relationships with rental car companies that make the reimbursement process seamless, while others may require you to submit receipts separately for reimbursement.
Benefits of Rental Reimbursement Coverage in Florida
- Provides peace of mind knowing that you have access to a rental car if your vehicle is in the shop for repairs, without having to pay out of pocket
- Policy discounts can be applied to rental reimbursement coverage if you own multiple vehicles
- Deductibles are usually not required
- Depending on the terms and conditions of your auto policy, it can provide temporary transportation due to natural disasters, such as hurricanes and tropical storms, that damage your car
- Useful in a busy tourist destination like Florida, where the risk of accidents and car damage is high
- Can help offset the cost of renting a car, especially in popular tourist areas where the cost can be expensive
- Can provide temporary transportation in areas of Florida with limited public transportation options
- Can provide temporary transportation in the event of car theft, which is a common issue in Florida
Drawbacks of Rental Reimbursement Coverage in Florida
- Paying an additional premium may not be a cost-effective option
- Each insurer will have pre-set daily and per-claim limits
- Policies can have restrictions regarding what type of rental car is provided
- Rental reimbursement coverage does not cover the cost of a rental car for personal reasons, such as vacations or special events unless your primary car is in an accident
Is Rental Reimbursement Worth It?
The decision to add rental car reimbursement coverage to your auto policy ultimately depends on several factors, including your driving habits, financial situation, and risk tolerance.
If you rely heavily on your car and can’t afford to rent a car on your own in the event of an accident or theft, rental reimbursement coverage may be worth considering. On the other hand, if you don’t often drive and have the means to rent a car on your own, rental reimbursement coverage may not be necessary.
Frequently Asked Questions (FAQs)
Here are some additional FAQs we receive:
Q: Is rental reimbursement coverage required in Florida?
A: No, rental reimbursement coverage is not required in Florida.
Q: Is the at-fault driver responsible for my rental reimbursement if I’ve been in an accident?
A: The at-fault driver’s insurance policy should cover the cost of your rental car. However, the at-fault driver’s insurance company may not immediately agree to do so, so you may need to work with your insurance company to ensure proper coverage.
Q: How do I add rental reimbursement coverage?
A: You can add rental reimbursement coverage by speaking with your auto insurance company or agent. It can usually be added to your existing policy for a minimal additional cost.
Q: Can I add rental reimbursement coverage to my auto insurance policy after an accident?
A: No, you cannot add rental coverage after an accident. Contact your insurance agent if you need clarification on whether you have rental coverage in your policy.
Have Additional Questions? Contact The Gordon Agency for Auto Insurance Near Me
If you’re in the market for a new auto policy or looking to add coverage like rental reimbursement to an existing policy, it’s a good idea to discuss your options with an experienced insurance agent. At The Gordon Agency, we can help you determine if rental car reimbursement coverage is right for you and your specific needs.
Don’t waste type searching online for “auto insurance near me.” As an independent insurance agency, our licensed insurance professionals will match you with the appropriate carrier and auto insurance policy, coverages, or products to obtain the best overall auto insurance coverage package for you at the best rate.
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