Do you Need Rental Reimbursement Coverage?

Date: April 18, 2022

Renter's Insurance

What is Rental Reimbursement Coverage?

Rental reimbursement coverage pays for a rental vehicle when your car is not drivable or is in the shop due to an accident. Rental Reimbursement (RR) coverage requires that you have full comprehension and collision coverage on your vehicle to qualify for this benefit.

How much does RR pay towards a rental vehicle?

ANPAC includes $25 per day up to a total of $750 at no additional cost on all insured automobiles provided the vehicle has full coverage. You can increase this coverage to as much as $50 per day with a $1000 limit. The cost to increase this coverage is $12.00 per 6 months per vehicle.

Why talk about Rental Reimbursement Coverage Now?

In the 12 years I have owned Samaha insurance I have never had a problem with clients running out of coverage on their rental reimbursements, until now! I have had two clients max out their rental reimbursement in just the past week. The problem is that the cars are stacking up at all the body shops because they cannot get the parts. Some repair shops are not even taking on repairs for 30 days or more and then they order parts that are taking weeks to receive. Since coverage is limited even if you have the maximum coverage you can see how you can max out your limits before your car is fixed.

What can be done about it?

The insurance industry is struggling with parts delays and a labor shortage which causes an increase in customer dissatisfaction, especially when you, our clients must pay rental out-of-pocket beyond current policy limits. Today our basic policy includes $25/$750 with buy up options of $40/$1200 and $50/$1000. ANPAC plans to increase our basic limits and offer increased buy up options once these are approved in each state.

In the interim ANPAC will liberalize our basic coverage from $25/$750 to $40/$1200 at no additional cost to you, our clients:

How can you help?

Our claims department should advise you as to your current coverage and limitations. If your vehicle is drivable, then it would be advisable to conserve your rental to the minimum amount needed and refrain from dropping your vehicle off for repairs until the shop is ready to work on your vehicle. We have seen autos dropped off only to have the repairs delayed by weeks because the parts were not at the shop. It would be wise for you to look for a way to borrow a vehicle from either a relative or friend as a possible back up option should you run out of coverage. Other options would be catching a ride or Uber to and from work or with a fellow employee. 

How will I help?

As you should already know we have attempted to contact all our clients to do Policy Reviews over the past year or two. Please take a few minutes and review your coverage or give us a call and we will arrange a time to discuss your coverage and options with you.  Your RR limits can be increased at any time not just at renewal.  Also, many of you are not taking full advantage of the discounts available through our defensive drivers and Three Line Discount and I will be happy to discuss these with you. Remember, at The Samaha Insurance Agency “It’s always about You”!


Submit a Comment

Your email address will not be published. Required fields are marked *