If you’re looking at ways to cut your automobile insurance costs, you might have considered cutting something called rental reimbursement coverage. This is coverage for the fees for a rental car in case your own car is in the shop because of a claim-related incident. However, don’t cut that coverage out just yet. While cutting it can save you a little money on your premium payments, keeping it can save you a lot later on.
Stemming or Preventing Excess Cash Outflow
If your car is in the shop due to an accident or another event that resulted in a claim, you may have to pay a deductible plus other costs that your insurance won’t cover. If you also have to rent a car to get to work, not having rental reimbursement coverage means you’d have to shell out the money for the rental car too.
That might not seem so bad if the repair won’t take long and you can reserve the car on a credit card. That would give you some time to get the money together to pay for the rental car. But if you have to use a debit card or cash to reserve the car, you might have to spend a lot more money up front, before you even see the car you want to rent.
Plus, if the accident had been caused by someone else, and that person’s insurance is paying, it still might not pay all of your rental car cost. Having the rental reimbursement coverage on your own policy may help you cover that gap, though this will vary from company to company.
Rental reimbursement coverage helps with this by either giving money directly to the rental car company or by reimbursing you soon after the claim is processed. In that case, you still might have to get the cash to the rental car company first, but you’d be paid back quickly.
Reducing Need for Additional Costs
You might think you can avoid extra costs by not renting a car and taking taxis or public transportation when needed. But even taxis will require payment up front. If an emergency occurs, you could find yourself spending a lot more on taxi rides (or costs for ride-sharing companies) than you originally intended. Buses and other public transportation might be cheap financially, but you’ll spend more time in a bus than if you were in a car driving yourself around.
In the end, having the rental reimbursement coverage can really help should you need it, enabling you to continue with your daily schedule with minimum disruption. If you’d like to learn more about rental reimbursement coverage, or if you’d like to find out about other ways to reduce your insurance premiums, contact companies like Family Insurance Centers.
Stemming or Preventing Excess Cash Outflow
If your car is in the shop due to an accident or another event that resulted in a claim, you may have to pay a deductible plus other costs that your insurance won’t cover. If you also have to rent a car to get to work, not having rental reimbursement coverage means you’d have to shell out the money for the rental car too.
That might not seem so bad if the repair won’t take long and you can reserve the car on a credit card. That would give you some time to get the money together to pay for the rental car. But if you have to use a debit card or cash to reserve the car, you might have to spend a lot more money up front, before you even see the car you want to rent.
Plus, if the accident had been caused by someone else, and that person’s insurance is paying, it still might not pay all of your rental car cost. Having the rental reimbursement coverage on your own policy may help you cover that gap, though this will vary from company to company.
Rental reimbursement coverage helps with this by either giving money directly to the rental car company or by reimbursing you soon after the claim is processed. In that case, you still might have to get the cash to the rental car company first, but you’d be paid back quickly.
Reducing Need for Additional Costs
You might think you can avoid extra costs by not renting a car and taking taxis or public transportation when needed. But even taxis will require payment up front. If an emergency occurs, you could find yourself spending a lot more on taxi rides (or costs for ride-sharing companies) than you originally intended. Buses and other public transportation might be cheap financially, but you’ll spend more time in a bus than if you were in a car driving yourself around.
In the end, having the rental reimbursement coverage can really help should you need it, enabling you to continue with your daily schedule with minimum disruption. If you’d like to learn more about rental reimbursement coverage, or if you’d like to find out about other ways to reduce your insurance premiums, contact companies like Family Insurance Centers.
No comments:
Post a Comment