Understanding Transportation Expense Coverage Limits - NYCM Insurance Blog

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Apr 26, 2023

Understanding Transportation Expense Coverage Limits

Does Your Auto Policy’s Transportation Expense Coverage Limit Meet Your Needs? Continue Reading to Learn About Transportation Expense Coverage Limits!

Imagine your vehicle is in the shop and you are left to drive a rental car while your vehicle is being repaired. With some car insurance policies, resorting to a rental car is no big deal—it’s just a temporary means of transportation while your vehicle is being restored to its former glory. But without the proper coverage, the experience of renting a car may be an expensive and inconvenient surprise.

It’s important to understand both your needs as a driver and the limits of your policy before an accident occurs so that if you need to rent a vehicle, you are covered with a vehicle that suits your needs and allows you to continue going about your day-to-day life without any major dilemmas or unforeseen costs. Continue reading to learn more about rental reimbursement!

What Is Transportation Expense Coverage?

When you buy a car insurance policy, you are given the option to purchase transportation expense coverage—sometimes referred to as rental car reimbursement coverage. This kind of coverage can cover the costs of a rental vehicle in the event your own vehicle becomes damaged in a covered accident and cannot be driven. Generally a policy will designate a total rental cost limit and a daily rental cost limit for the repair time of your vehicle not to exceed 30 days.

It’s a good idea to know what your rental reimbursement limits are – both in total and daily – and to consider whether this coverage is sufficient for your day-to-day needs as a driver. For example, if you are used to driving your family around in a large SUV, you will want to ensure your policy covers a vehicle of this size to avoid ending up with a smaller rental vehicle or paying out-of-pocket to bridge the gap.

How Much Is Transportation Expense Coverage?

The price of transportation expense coverage varies by insurance carrier, and by level of coverage. If you are unsure if you have rental reimbursement coverage, contact your insurance agent or check the language of your policy for more information.

Should I Get Transportation Expense Coverage?

Without rental reimbursement, the expense of obtaining replacement transportation can be expensive. Rental car reimbursement coverage is a relatively cheap coverage to purchase that can save you a considerable amount should your vehicle become undriveable due to a covered loss and a rental vehicle is needed.

Why Is Transportation Expense Coverage Important?

If you are accustomed to driving a large or luxury vehicle, you should review your coverage limits to make sure your policy meets your needs. Not all rental vehicles are priced the same and depending on the type of vehicle and the length of time you are renting, you may exhaust your coverage limits and be forced to pay out-of-pocket if you don’t have the right coverage.

In conclusion, when it comes to renting a car, it’s important to understand two things: What are my policy limits? and What are my needs?

Purchasing car insurance might seem like a daunting task, but our agents are here to assist you through the process and help offer personalized coverage to protect what matters most to you. Click below to find and speak with an agent today!