Insurance Replacement Car Rentals

When you are involved in an automobile accident, most automobile policies provide the policyholder with coverage towards the insurance replacement car rental. This coverage is about $30 a day. There are some policies which do provide more coverage while others provide less. This is similar to life insurance; different people have different coverage levels depending on what level of coverage they purchase.

Be wary of insurance replacement car rental recommendations

Most insurance companies seem to refer their policyholders to one specific car rental company. The insurance companies state this is for the benefit of the policyholder however that is not always true. We at All Car Rent A Car often provide lower rates than the agencies that the insurance companies seem to use most.

It is interesting that insurance companies refer policyholders to one of several collision shops, one of several medical providers, and one of several home repair companies, yet limit the customer choice when it comes to insurance replacement car rental provider. It is well known that competition lowers prices for the consumer and provides an increased level of service.

Trust All Car with your insurance replacement car rental

All Car Rent A Car will provide customers who need to rent a car due to a collision or theft of their own vehicle, a car at rates which start at $30 a day. The vehicle that All Car provides will not be a sub- compact car either, but a Toyota Corolla or similar sized vehicle. This same vehicle is considered an intermediate size car at the company most insurance companies recommend.

While the insurance company may push you, their policyholder, to one specific company, you the consumer have a choice and can rent from any company you so choose. All Car provides you with a viable choice and you should tell your insurance company you want to shop around for the best deal.

As an example, companies such as All Car do not commission their rental agents to sell customers who own cars collision coverage, as most personal automobile policies cover a rental car. The rental agencies that the insurance companies recommend do pay their staff commission on the sale of collision coverage. This collision coverage is known by several names, such as Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) and can cost $18 to $25 a day. Companies such as All Car can thus save you, the policyholder, a substantial sum. What's more, this coverage is taxable. So in states such as New York where the tax rate is 19.875%, this collision coverage actually costs the consumer $22 to $30 a day.

It is important to note that a rental car is covered under the liability portion of a consumer’s policy, so even if a customer has a very old car or only has liability coverage, the car they rent is covered is as well. The customer does not need to have collision coverage on their own car for the rental car to be covered.

Another thing to keep in mind

Most insurance companies authorize insurance replacement car rentals in short increments, such as 5 days at a time. This means that when you rent from these agencies, you’ll be forced to extend your rental as it often takes more than 5 days to repair a car. The extra charges the customer may face can be substantial on a rental which may last up to 20 days or more depending on how long it takes for the car to be repaired.

All Car does not try to pressure the customer into paying for an upgraded insurance replacement rental as the standard car that All Car provides is much larger than those offered by other rental agencies. All Car does not push the extra insurance coverage either.

Many insurance companies may suggest that they only direct bill with the one rental agency they recommend. This however, is incorrect. All Car will direct bill with any insurance company and does not require customers to pay for the entire rental upfront. This way, you don't have to wait to be reimbursed by the insurance company.

In summation, you the customer have the right to select the car rental company you want and should shop around and compare before just accepting the insurance company recommendation. Always remember to ask each company what size car are you will receive, and whether the car rental company accepts your policy as coverage for the rental vehicle. Don't let them push the sale of the car rental company collision coverage if you don't need it!