When a claims situation strikes, insureds are seeing longer repair times for their vehicles. Now is the time to rethink rental reimbursement in 2022. As labor shortages and supply chain issues negatively impact the auto industry, are you getting the most out of your Rental Reimbursement Coverage?
What is Rental Reimbursement Coverage?
We’ve blogged about this coverage before, so to summarize it’s an optional coverage on auto insurance that reimburses you in most situations where your car is being repaired and isn’t drivable due to an accident or claim.
Has Rental Reimbursement Coverage Changed?
The coverage itself hasn’t changed. Due to the current state of the auto industry, cars are staying in the shop longer and auto parts can be scarce. Not to mention, rental cars are more expensive and get snapped up quickly. Right now is the perfect time to rethink rental reimbursement. In the past, the 30/900 coverage was thought to be sufficient. This means you would be reimbursed for up to $30 a day, with a maximum reimbursement of $900. Bumping that coverage up to 40/1000 or higher might be something you want to consider.
What Should Auto Owners Do?
First, take a look at your auto policy declarations page to see if you have Rental Reimbursement coverage. Next, contact your agent and ask if that is a good level of coverage. You can also contact your carrier’s service center directly to beef up your coverage.