Always Pay the $10 to Get Car Rental Insurance

When purchasing car insurance, people often view the option to purchase rental car coverage as an unnecessary expense that can be eliminated to reduce the monthly premiums. While saving money is always a good idea, skipping the option to purchase rental car coverage may not be the best way to accomplish this goal. On the contrary, passing on optional rental car coverage can turn out to be a costly mistake if you are involved in a collision that leaves your vehicle undriveable. Unfortunately, adjusters can take days, even weeks, to complete their liability investigation, forcing you to pay out-of-pocket for a rental car in the meantime if you do not have rental car insurance. As attorney Paul Reed explains on a recent episode of Lawyer Podcast, he regularly represents people who have been involved in car accidents and many of them do not have rental car coverage, but they should because it can provide a crucial layer of protection in the aftermath of an accident.

What Is Rental Car Coverage?

Rental reimbursement coverage is optional automobile insurance coverage designed to help pay for temporary transportation when your covered vehicle cannot be used because of a covered loss. This coverage applies without regard to who was at fault in a collision.

If your damaged vehicle needs to remain at a repair facility, an adjuster is conducting a liability investigation, or your own insurance company is determining whether it should be declared a total loss, rental reimbursement coverage may allow you to obtain temporary transportation subject to the terms, limits, and conditions of your policy.

Without rental coverage, you may find yourself waiting for the at-fault driver’s insurance company to investigate the crash and accept liability before it agrees to provide or reimburse you for transportation. With applicable rental coverage under your own policy, you may have another option for obtaining a vehicle without depending entirely upon the other insurer’s timetable.

Won’t the At-Fault Driver’s Insurance Cover My Rental Car?

In the immediate aftermath of a crash, it may be obvious which party was responsible for the collision. Sometimes, the other driver openly accepts responsibility for the crash. In that case, you may understandably expect the at-fault driver’s insurance company to pay for your rental car. Unfortunately, it is rarely that simple.

The other driver’s insurance company may not immediately accept their own driver’s version of events. Instead, they may assign an adjuster to investigate the collision. That, in turn, requires the adjuster to review the police report, contact the insured and potentially witnesses, and examine photographic or video evidence before formally accepting liability. In the meantime, your damaged vehicle may be sitting in a tow yard or repair shop while you are forced to figure out how to get to work or school.

While the at-fault driver’s insurance company may eventually accept liability and be held legally responsible for your rental car expenses, the reality is that you may be forced to cover those expenses yourself in the interim. If you do not have rental vehicle reimbursement coverage on your own policy, you will be left paying those expenses out-of-pocket.

Florida’s Minimum Property Damage Coverage May Not Be Enough

The other common roadblock you may face when paying for a rental car after a crash is that the at-fault driver’s insurance coverage may be insufficient to cover your expenses. Florida drivers are only legally required to maintain $10,000 in property damage liability coverage. If your vehicle sustains serious damage or is totaled in the collision, it may require every penny of the at fault driver’s insurance coverage to pay for the repairs or replacement, leaving you stuck paying the rental expenses.

Given the price of modern vehicles, this problem can occur even if the at-fault party has more than the minimum insurance coverage. If your $50,000 vehicle is severely damaged in a crash, even higher property damage limits of $25,000 or $50,000 may not leave enough room to provide rental car reimbursement. For this reason alone, purchasing rental car reimbursement within your own insurance policy is a wise choice.

Rental Coverage Can Protect You Regardless of Who Caused the Accident

When choosing optional rental car reimbursement coverage within your own policy, it is critical to understand that the coverage applies without regard to who caused the accident. Instead of waiting for the insurance companies to investigate the crash and resolve their positions while you pay out-of-pocket for transportation, you can rely on the coverage you purchased specifically for this situation.

Most policies charge less than $10 a month for rental coverage, an amount that most people won’t notice on their bill each month. Having to pay out-of-pocket for a rental car, however, is a cost that will impact your wallet. In addition, if the insurance company is covering the cost of your rental car, they have a financial incentive to move the investigation and claim along faster. For these reasons, attorney Paul Reed believes that purchasing rental car reimbursement coverage is one of the best decisions you can make.

Do You Have Questions about a Florida Car Accident?

If you have additional questions about how rental car reimbursement works following a Florida car accident, schedule a free initial consultation with the experienced personal injury attorneys at Reed & Reed.