Published: July 2016
Rental reimbursement coverage is a coverage that you may choose to add on to your auto insurance policy. It may help to pay for a rental car while your own vehicle is being repaired after a covered loss.
Watch Allstate agency owner Adam Ware explain how one customer's rental reimbursement coverage saved her money and helped her family get away for a vacation with minimal stress and frustration.
Hi, my name is Adam Ware. I'm an Allstate agency owner in Sandy, Utah. I'm here today to talk about rental reimbursement coverage.
Rental reimbursement is a coverage that can be added to your car insurance policy. This coverage may help pay for a rental car while your own vehicle is being repaired after a covered loss.
Having rental reimbursement coverage really helped one customer recently. One day, she was backing out of her garage when she accidentally hit it. There was a big dent in her back bumper. Then, she thought she was clear and kept going, and ended up scraping the wall and damaging the whole side of her car.
She was almost in tears from frustration, because the family was going out of town a couple of days later. The family had two vehicles, but she needed her car to run errands before they left. I just told her, 'Hey, that's what your insurance is for,' and helped her make a claim on her policy.
She took her vehicle to the body shop. Her collision coverage helped pay for the repairs. She had rental reimbursement coverage as well, so we were able to help her arrange a rental car. She used the rental for a day or two to finish running errands before the family's planned trip.
All together, the repairs to her vehicle and the cost of the rental car was $3,400. She paid her $500 deductible, and she had enough insurance to cover the rest.
Her car was in the shop for a week while the family was on vacation, and by the time they came back, the vehicle was fixed. Having rental reimbursement and collision coverage in place helped the family get through this situation with minimal out-of-pocket expenses.