Should You Get Rental Reimbursement?
The whole process of acquiring insurance of whatever type can be a daunting task but a necessary one. It is hard to imagine a life without insurance, where a person would have to absorb and cover all the losses he incurs on his property. Insurance offers a guarantee to people for a minimal payment that the insurer will compensate or indemnify the insured in the event of a personal financial loss. For a minimal amount, which is the premium, you can rest easy that should you suffer loss due to something that you have insured against, your insurer will restore you to the position that you were prior to the loss. This is done through financial compensation.
With car insurance the whole business gets a little more complicated as there is a slew of insurance products and coverage that you can purchase to ensure that you are financially protected. The rules on minimum requirements differ from state to state in terms of car insurance. There are some states that would require certain types of coverage that are not required in other states. Other than that, people have different sets of needs when it comes to auto insurance. There are a lot of factors to consider such as the make and model of the vehicle, the age of the driver, his driving history, the other drivers authorized to drive the insured vehicle, whether he carries passengers, and how many.
There are also a lot of rider policies to further ensure that you are indeed adequately covered against financial losses should you figure in an accident or in any other type of perils named in the policy. One such insurance rider is the rental reimbursement.
The protection provided by rental reimbursement coverage is financial provision for when you need to rent a vehicle. The financial protection only applies if your vehicle needs to be sent to the repair shop after figuring in an accident. You can also enjoy protection from this type of coverage if your car sustains damages due to particular causes that are listed in your policy. In other words, you cannot make a claim against this coverage if you are sending your car to the shop for just regular repairs. The types of instances causing damage to your vehicle that may be covered by your rental reimbursement rider policy would include acts or God, otherwise known as natural occurrences, and theft. When these situations arise, you are entitled to receive an allowance to rent a temporary form of transportation while your vehicle is being repaired.
Whether you need rental reimbursement coverage would depend on your personal circumstances as well as your capability to maintain this coverage. Some people live in the suburbs and work in the city with no means of public transport should they need to send their car to the repair shop due to an accident. This situation would definitely warrant the purchase of rental reimbursement coverage. But if you live in the city and have adequate means of getting to and from work through public transportation, then perhaps you could forgo this coverage.
Rental reimbursement coverage would also not be practical if you have an alternate car that you can use in case your primary car is damaged in an accident. You would also not be needing rental reimbursement if you have family or friends who can loan you their vehicle on a temporary basis.
Perhaps the true test of whether indeed you would be needing rental reimbursement is if you think that you would have to rent a car in the event that yours gets damaged in an accident. The rental reimbursement coverage was intended for this particular situation. Your policy would provide you with a rental allowance on a daily basis, which you can then use to rent a car while yours is under repair.
There are no requirements or rules in any state instructing motorists to have rental reimbursement insurance. The decision to have this in your policy is completely your call. You should assess your situation first before making a decision to add this coverage into your auto insurance policy. This coverage can be a necessity for some people and totally pointless for others, and that would all depend on your personal circumstances.