Will My Insurance Company Cover the Costs of a Rental Car?

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Will My Insurance Company Cover the Costs of a Rental Car?

Answering the most asked question, "Will My Insurance Company Cover the Rental Car Costs?"

Only purchasing a car is not enough these days. You also have to think about the contingencies that will come up while driving it. For example, what if you get into a car accident and your car is totaled? What will you do if you need to get to work but your vehicle is in the shop? What if you are on your way to your home and your car meets with a fire accident? These are all situations that can be resolved by renting a car. But will your insurance company in Texas reimburse the rental car cost?

Insurance providers cover various expenses depending on the policy that is in place. For example, if you have rental reimbursement coverage on your policy, the insurance company will likely cover the costs of a rental car. However, if you do not have rental reimbursement coverage and need to rent a car, you may be responsible for the costs yourself.

Are the Rental Car costs covered in the Insurance Plan?

There are two instances in which an insurance plan covers renting a car. The first one is when the breakdown of the vehicle takes place, rental car coverage can help pay for the costs of renting a car while your car is being repaired. This includes the price of the rental car itself and any insurance or collision damage waiver (CDW) fees. Most auto insurance in Texas includes rental car coverage. So, it's essential to read your policy carefully to understand what is and isn't covered. There are various types of car insurance, and the specifics of that coverage can vary from policy to policy.

Rental Reimbursement Coverage

If you are in an accident and your car is damaged, most insurance companies will cover the cost of renting a replacement car while your vehicle is being repaired. The reimbursed amount will usually be based on the rental reimbursement coverage you have. To avail of the benefit of rental reimbursement coverage, you need to purchase collision and comprehensive coverage.

If you have collision coverage, your insurance company will pay for the cost of a rental car up to the amount of your collision deductible. While comprehensive coverage pays for the price of a rental car if your vehicle is stolen or damaged by something other than a collision, such as a fire or vandalism. It covers all the expenses that are other than accidents. For instance:

  • Natural disasters
  • Theft
  • Vandalism
  • Falling object damages (tree branches, rocks, etc.)
  • Hitting an animal

In What Circumstances Rental Cost will not be Covered?

  • The rental reimbursement will not cover the expenses that are not covered under its coverage plan. For instance, when a mechanical breakdown occurs, the insurer will not reimburse it, and the same has to be borne by you.
  • If you need to go on a trip or a long vacation with your family, all those expenses will not be covered, and you need to manage them by yourself in case of any disaster or contingency.
  • If your car is in the service center for its regular maintenance and you require renting a car, you should bear all the expenditure by yourself. No one is going to reimburse it for you.

The Bottom Line

Accidents happen, and when they do, you'll likely need to rent a car while your vehicle is being repaired. But will your insurance company cover the costs of the rental cost or will you bear it? That depends on your policy. Most homeowners insurance in Texas offer rental reimbursement coverage as part of their standard policies, but that coverage can vary greatly. In some cases, the policy might only cover the cost of a rental for a day or two, while in others, it could cover the total cost of a rental for an extended period.

Be sure to read your policy carefully and familiarize yourself with the terms and conditions. Do not hesitate to contact your insurer directly if you have any questions. You can even compare the auto insurance quote to get the perfect idea on what works best for you.