Purchasing coverage for a rental car before you have an accident is a great way to enhance your auto insurance policy.

Rental car costs have gone up as the technological components in newer cars have increased the length of time it takes to repair vehicles. As a result, rentals associated with an insurance claim currently average nearly 15 days at a rate of $38.12 per day.

This leaves a potential exposure of nearly $600 for a rental while your vehicle is being repaired from the damages caused by a covered claim.

You have a lot of options when it comes to coverage limits for rental expenses if your vehicle is damaged. When discussing coverage limits with our agency, it is important to consider what type of vehicle will be necessary if an insurance claim occurs.

For example, if you have children and normally drive a minivan, a compact car isn’t going cut it — even for a couple of weeks. You should consider at least $50 per day in coverage so you can rent a minivan. However, if basic transportation is all that is needed, most rental car companies offer compact and intermediate sedans for around $30 a day, while a full-size sedan can be rented for around $40 a day.

Keep in mind there will be fees and taxes associated with the rental, so it is a good idea to move to the next higher limit to be covered in full. For example, if the car rental is $30, selecting a $40 a day coverage limit should cover most, if not all, of the rental fees and taxes.

Think you may need to update your rental coverage options? Discuss it with your Keyser agent. They’re ready to help.


[SOURCE: Auto-Owners Insurance]