We recently fielded a question that came from a Facebook follower of ours. She asked if auto insurance covers the cost of a rental car if her car is ever stolen. This is a great question.
If your car is stolen, and you’d like for your insurance to cover it, you’ll need to first ensure you have comprehensive coverage. Most times when a vehicle is stolen the insurance company will have a waiting period. This waiting period is commonly called the recovery period and is intended to see if your car is found by the police department. The recovery period is typically 2-4 weeks.
So you see, this is a great question because it’s entirely plausible that you could be without your car for a month. Which means that, in addition to your car payment and your insurance payment, you’ll also need pay for a rental car too. Just think – $50/day for 30 days comes out to $1500 bucks!
Is it covered?
With all this in mind, here is the answer to the question – while some insurance companies provide for rental car reimbursement up to policy limits provided you have comprehensive coverage, others will require you to have rental car reimbursement coverage on your policy to cover the cost of the rental car.
What should I do?
Check your policy for loss of use coverage under the comprehensive section where it speaks of vehicle theft. If it’s not there then you need to add rental car reimbursement coverage to ensure you’re not paying for the rental car out of pocket!
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