Why Get Rental Reimbursement/Towing & Labor Coverage?
While we may not like to think about it, we’re all subject our car breaking down on us or being damaged in an accident. If you find yourself in either situation, one of the last things you want to think about is the cost associated with it.
A reasonable response to either situation might be, “I have full coverage on my car, so I’m all set.” And while this may be true for repair costs stemming from a covered comprehensive or collision claim (less the applicable deductible in either case), what about a rental vehicle while your car, truck, or SUV is getting repaired?
This is where rental reimbursement coverage comes into play. This type of auto insurance helps cover a rental car’s expense while your vehicle is being repaired in the body shop after a covered accident, such as a collision with another vehicle, crashing into a stationary object, or hitting deer or other wildlife on the road.
Rental reimbursement coverage usually has a per day limit (such as $40 per day) as well as a number of days limit (typically 30 days), so if your vehicle is deemed to be a total loss, you should begin to look for a replacement as soon as possible.
What about instances where you aren’t involved in an accident, but your car simply breaks down? Towing and labor coverage is a common add-on option to auto policies that will cover costs when such a situation occurs. This coverage has a limit of insurance that applies per disablement (such as $75) and will typically include services such as towing, delivery of oil and gas, battery assistance, lockout assistance and tire changes. It won’t cover the cost of parts (such as a dead battery) but may pay for a jump start or a tow to a repair shop so that you may purchase a new battery.
In some instances, auto policies will automatically include limited amounts of coverage for rental reimbursement as well as towing and labor coverage. If you don’t have either coverage, they are inexpensive to add. Similarly, if you have one or both coverages but feel that the limits are insufficient, it is relatively inexpensive to increase the limits of insurance to where you feel they are needed.
Renting a car for a few days can add up and there's no telling how long a repair will take, especially given our current market conditions where parts are increasingly hard to come by. Rental reimbursement coverage will help to keep a covered claim from affecting your bank account too much.
Likewise, unless you have a service through your auto manufacturer or through a third party such as AAA, towing and labor coverage can eliminate a potential expense for you.
Talk to your agent or account manager at The Uhl Agency to learn more about these valuable coverages!