Rental Reimbursement Coverage in New York State
Last Updated on January 16, 2019
One type of insurance that is available for those that have existing auto insurance is called rental reimbursement insurance. This type of insurance is pretty useful if you have to rent a car, because often the cost of renting is covered. However, you have to be aware of the restrictions on this type of insurance because it only kicks in during certain situations. Let’s take a look at rental reimbursement insurance in New York and go over some of the reasons why you might need it. That way you can make an informed decision about whether this type of insurance is a smart addition to your current car insurance plan.
What is covered by Rental Reimbursement?
There are certain situations in which you might be covered by rental reimbursement and you need to understand what those are before you decide to add it to your insurance plan. Sometimes it is already added as part of a comprehensive insurance plan, but other times you have to add it yourself. Rental reimbursement is intended to offset the cost of a rental car during the time that your vehicle is out of commission due to repairs. This is only valid if your car is in an accident and the repairs are being covered by the insurance company. If your vehicle breaks down, and you have to get a rental car, your insurance company is not going to cover this because it falls under regular maintenance.
How Does Rental Reimbursement Work in New York?
Rental reimbursement works differently depending upon which insurance you go with, but in New York, policyholders have the right to choose which rental car service they want to use. Often the insurance company will provide a recommendation as to which insurance they prefer that you use, because they have an arrangement with that rental company where they pay less, but you do not have to go with that particular rental car company. You can choose any company you want and then be reimbursed for the money that you have to spend on the rental car while your vehicle is being repaired after an accident. However, going with the recommended car rental company does have some advantages including the fact that they will often bill your insurance company instead of making you pay upfront for the car rental.
How to Know if you Need Rental Reimbursement
Knowing whether or not you need rental reimbursement insurance will depend upon your own personal situation. Most people have jobs that they have to get to, but there are alternatives to renting a car. For example, if you are in an accident and your vehicle is being repaired, you might be able to take an Uber or taxi as well as use other forms of public transportation. You might even have a second vehicle that you can use instead. If you think that you have another option, then you should weigh the cost of that option against the additional cost that having rental reimbursement insurance will run you.
How Much Coverage Do You Need?
You also have to determine how much coverage you need. There are a lot of factors that affect this as well. However, most people will not have any idea how much coverage they will need because they don’t know how long they will need the rental car if an accident has not actually occurred. If it is extremely important that you have a vehicle due to your job or other concerns, then you may want to go with more coverage just to be safe. You also want to look at the policy carefully, to make sure that you are able to get a vehicle that meets your needs if you do have to use this type of insurance. For example, if you have a large family, then you’re going to need a vehicle where everyone can fit, and if your insurance plan does not cover more than a standard rental car, then it is worth nothing to you.
How Much Does Rental Reimbursement Cost?
The cost of rental reimbursement insurance can vary from one insurance company to another, but generally you are not going to be paying more than a few dollars a month in addition to your regular insurance plan.