Rental Car Coverage – Auto Insurance

Transportation Expense

Rental Car Coverage and Transportation Expense are the terms that describe coverage available to those clients who insure their auto for comprehensive coverage on the personal auto policy.  Most carriers include Rental Car Coverage in a minimum $20 dailer amount within the price of the comprehensive coverage.  The allowance is $20 per day and a maximum of 30 days, or $600, is allowed in the basic coverage included with comprehensive.

The cost of an average rental auto today is between $30 and $40 at the minimum and our current suggestion for our clients is to buy at least $30 a day for rental car coverage and $40 allows a greater choice of vehicles to rent.  It is a good idea to buy more coverage in this area than might first seem necessary.  Some of our carriers make the total limit of coverage available to pay for “loss of use” charges made by rental car companies.  Loss of Use coverage is an additional loss owed to rental car agencies for the loss of rental time or value while a car is being repaired after a loss.  When their car is damaged in a collision by an insured driver the loss of use is often included with the claim made to your insurance carrier.  In some other instances the carriers permit the Rental Car coverage to be used to help offset the expenses of collision or OTC disablement when it occurs away from home.  If you have an accident away from home it is likely that you will encounter the cost of alternate transportation and hotel charges, depending on the distance away from the loss occurs.