A single of the very widespread choices among the numerous you can optionally get with your automobile insurance plan is rental auto protection. This is not a required protection but is something you can typically opt for if you want. What this type of protection addition does is to pay out for a rental car if your vehicle is in the shop for repairs for an extended interval of time.
But is this kind of coverage value it? There is no proper response to this question, so you need to search at what it offers and make a choice about regardless of whether or not you want or would like this extra degree of protection. There are a lot of ways this type of coverage can be utilized, so let us just take a search at the different scenarios.
Your car is involved in an accident and will be necessary to be in the shop or garage for a period of time of time for repairs. Normally this period of time needs to be at minimum a number of days, because this coverage could not be utilized if repairs can be completed in the identical working day. This optional insurance policy coverage will pay for a rental car for you to use whilst your automobile is being repaired.
But there are multiple problems with this. Very first of all is your deductible. The amount of the deductible is subtracted from the cost of the repairs in addition the expense of the rental automobile (if you have this protection). So if your deductible is $five hundred, the price of repairs is $3000 and the cost of the car rental is $three hundred, you are not reimbursed $3300 but only $2800 to account for your $500 deductible.
But there is a brighter aspect to this as properly. If the other driver acquired the ticket and was at fault in the incident, then the other insurance coverage business is liable to shell out for the repairs, which includes your deductible, and if you have rental auto protection, also for that.
However, this gets a bit much more complicated. Initial of all, the sum you spend for rental vehicle coverage is usually has a limit, say $750. If the cost of the rental is more than the described ceiling amount, you are necessary to spend the added quantity. Also, your insurance policy company will only reimburse for a “equivalent” auto. So if your VW is in the shop, your insurance firm will only reimburse you for a “equivalent” car like a compact, and would not reimburse you for your rental of a Corvette.
Be quite mindful of what the automobile rental agency is heading to cost you for the rental car. If your insurance policy coverage will only reimburse say $twenty five a working day for the rental vehicle, you may end up paying parts of it if the auto rental firm is charging you 35 seater coaster for rent in Dubai $32 a working day.
Bottom line: the car rental coverage on your vehicle insurance coverage policy is really economical, but at the exact same time, it is not totally free. If you need it, it is fantastic to have it but you need to have to make a decision if you are likely to need to have this sort of coverage.