At Memorial Insurance Agency, serving the greater Houston, TX area, we are often asked whether an auto insurance policy pays for a rental car if your car was involved in an accident. There are many myths about this topic, which is why people get confused. Here is what you need to know about rental car coverage and your auto insurance policy.
Do All Auto Insurance Policies Pay for Rental Cars?
No. Many people believe that their auto insurance company has to pay for a rental car if they were involved in a car accident and cannot use their car because it is being repaired. However, this is a myth. Your auto insurance company does not have to pay for a rental car. Unless the policy specifically says that rental car expenses are paid, you should assume your policy does not provide for a rental car in the event of an accident.
How Can You Tell if Your Company Pays for a Rental Car?
If your policy provides for a rental car after a car accident, your policy will state that it is included. It will also typically state how many days the policy will pay for a rental car, such as five days or ten days, as well as the maximum amount that they will pay for a rental car. When renting a car, most policies will only cover a vehicle similar to yours, so you cannot upgrade to a larger car.
Does your auto insurance policy provide for a rental car if you were in a car accident? If it does not, it may be time to get a new auto insurance policy. If you are in the greater Houston, TX area, Memorial Insurance Agency can help you find the right auto insurance policy for your needs. Contact us now to get started.