Should I get rental reimbursement coverage? How much? – Gilbert AZ
Hey, guys. This is Joe Kennedy with the Kennedy Agency in Gilbert, Arizona. I wanted to take a minute to discuss car rental reimbursement coverage. Now, whether or not you need that coverage really depends on your household. I personally do not carry car rental reimbursement on my car insurance because if my car was involved in a claim and it had to go to the shop, me and my wife would carpool and we’d be just fine. However, if that’s not the case and carpooling isn’t an option, you want to make sure that you have car rental reimbursement so if you do have a car insurance claim you do get some money to cover a rental vehicle while your car is in the shop.
Now, the reason that I wanted to touch on this today is because, depending on the market that you’re in, you may see that there is a little bit of a shortage in terms of availability. Here, in the Phoenix area, a lot of car rental places are low on their inventory and we’re seeing that, that is causing the cost of the rental vehicles to increase. Now, the way that your policy is typically going to work is that if you do carry rental reimbursement, it’s going to be a dollar amount per day. Usually, that dollar amount of is anywhere from $30 to $60. So that’s not a coverage that increases automatically in these times where the inventory is low and car rental places are increasing their cost.
So just something to be mindful of. I would definitely only encourage you to contact your agency and make sure that you do have the proper coverage and it might be worth considering an increase on that particular coverage, just because supply and demand happens and right now we are seeing a shortage in rental vehicles, which is causing the cost of those rental vehicles to increase, so you want to make sure you have the right coverage. Hope that’s helpful. For anybody that’s out there, feel free to reach out to my agency if you have any questions. If you’re not in the state of Arizona, get with your local agent and they’ll be able to help you out. Have a great day.
Call The Kennedy Agency in Gilbert AZ at 480-526-8277