Do You Really Need Rental Reimbursement Coverage?

Posted on October 25, 2024October 31, 2024 by Craig-Peterson Agency

If you’ve been shopping for car insurance in Raleigh, NC, you’ve likely come across rental reimbursement coverage as an option.

But what exactly is it, and do you really need it? The short answer is yes—and for good reasons.

Rental reimbursement coverage ensures that you’re not left scrambling for transportation while your car is in the shop after an accident. If you’re unsure about adding this to your policy, this article will give you all the information about rental reimbursement to help you make an informed decision.

We’re breaking down what it is exactly, what it covers and how much it will cost.

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What Is Rental Reimbursement Coverage?

Suppose you get into an accident, and your vehicle is damaged, and you have collision or comprehensive coverage as part of your auto policy. Great! In that case, the insurance company will pay to repair it.

The average duration for a car repair after a collision is 11 days. This means that you will not have access to your car. Will you need transportation?

Rental reimbursement coverage will pay the cost of your rental car, up to the limits of the policy.

How Does Rental Car Reimbursement Coverage Work?

If your car is damaged in a collision and needs repairs, rental reimbursement coverage allows you to rent a vehicle while your car is being fixed.

Your insurance company will coordinate the rental, and the coverage will pay for it up to the limits specified in your policy.

This way, you won’t be left without transportation during the repair period.

What Happens if Fault is Disputed?

If you and the other driver don’t agree on who’s at fault after an accident, things can become more complicated.

However, if you have rental reimbursement coverage, you can contact your insurance company to arrange for a rental car right away. Later, if it’s determined that the other driver was at fault, your insurer will work with their insurance company to recover the costs.

Without rental reimbursement coverage, you’ll need to wait and see if you can be reimbursed for the cost of a rental car. If it’s decided that the accident was your fault, you’ll have to cover the rental expenses yourself.

If the other driver is found to be at fault, you can seek reimbursement from their insurance company for the rental car costs you’ve already paid.

Why Do You Need Rental Reimbursement Coverage?

There are numerous advantages to having rental reimbursement coverage on your auto policy. This is why, at the Craig-Peterson Agency, we encourage you to get this coverage. The advantages are:

Cheaper Cost

Paying for alternative transportation out of pocket when your vehicle is being repaired after a collision can be very expensive. This is especially true if you have to rent a car. Getting rental reimbursement coverage is a cheaper alternative. The coverage is usually affordable because most insurers have business deals with car rental companies.

Convenience

Not having a mode of transportation can be very disruptive to your life, especially if you hadn’t set aside some emergency money for this purpose in advance. Having rental reimbursement coverage as part of your auto policy eliminates this hurdle. Additionally, your insurer will conveniently provide you with a rental car as soon as they take away your vehicle for repair.

What Does Rental Reimbursement Typically Cover?

Rental reimbursement typically covers the cost of renting a car from an approved rental agency while your vehicle is in the shop.

This coverage can also extend to scenarios where you need a rental car for a certain number of days or up to a specific dollar amount, which will be outlined in your policy.

How Much Rental Reimbursement Coverage Do I Need?

Like other types of insurance, rental reimbursement coverage comes with limits. Policies usually have both a daily limit and a total claim limit.

The daily limit is the maximum amount your insurer will pay each day for a rental vehicle, so any extra costs will come out of your pocket.

The total claim limit is the highest amount your insurer will cover for each claim, which could either be a set dollar amount (e.g., $800) or a time limit (e.g., 30 days). If you need a rental car for a long time, you may quickly hit these limits. Some insurance companies offer various options for coverage limits, while others may only provide one.

To figure out how much coverage you need, consider rental car rates in your area and how critical access to a vehicle is for you. If you only drive occasionally, you might not need much coverage.

However, if you rely on your car for daily commuting, you’ll want to ensure your rental reimbursement coverage provides enough protection to keep you on the road without interruptions.

How Long Will Insurance Pay For A Rental Car After An Accident?

Rental reimbursement will typically cover a rental car for the duration of your vehicle’s repair, but this is subject to the terms of your policy. Most policies set limits, either by the number of days you can have a rental or by a maximum dollar amount.

For example, your coverage might allow for up to 30 days of car rental or $900 in rental fees—whichever comes first. It’s important to check your specific policy for these details.

Rental Reimbursement Coverage Limits

Every policy has coverage limits, so it’s essential to understand what yours includes. Typical limits are based on a daily dollar amount (for example, $30 per day) and a total maximum amount (for example, $900).

Make sure your limits fit your needs, especially if you drive a more expensive vehicle that might require a higher-cost rental.

Is There A Deductible For Rental Reimbursement Coverage?

Unlike collision or comprehensive coverage, rental reimbursement coverage does not usually require you to pay a deductible. This means you won’t need to worry about upfront costs when getting a rental vehicle.

Are you a Raleigh, NC, resident looking for auto insurance with useful coverage add-ons? Contact Craig Insurance Group today.

Rental Reimbursement Coverage FAQs

Is rental reimbursement coverage worth it?

Yes, rental reimbursement coverage is generally worth it, especially if you rely on your vehicle daily. Without it, you could face high out-of-pocket expenses for a rental car while your vehicle is being repaired after an accident. If your car is in the shop for several days—or even weeks—rental reimbursement coverage will give you peace of mind and financial relief.

How much does rental reimbursement coverage cost?

The cost of rental reimbursement coverage varies depending on your insurance provider and policy, but it’s generally very affordable. In many cases, you can add this coverage to your auto insurance for just a few dollars a month. Generally between $2 – $15 per month. The small cost of this coverage can easily save you hundreds of dollars in rental expenses if your car is in the shop for repairs after an accident.

Does rental reimbursement cover rental cars after all accidents?

If you’re involved in an accident and your car needs repairs, the rental reimbursement will cover the cost of a rental vehicle. However, this coverage might not apply if your vehicle isn’t being repaired or if the accident wasn’t covered under your auto policy (for example, if you only have liability only insurance).

Can I get a luxury rental with rental reimbursement coverage?

Most rental reimbursement coverage limits apply to standard rental vehicles, not luxury cars. Coverage usually comes with a daily dollar limit (e.g., $30 – $50 per day) and a maximum number of days for which the coverage applies. If you want to rent a luxury vehicle, you would likely have to pay the difference out of pocket.

Is rental reimbursement included in full coverage?

Rental reimbursement coverage is typically not included in what is commonly referred to as “full coverage” (which usually includes liability, collision, and comprehensive coverage). It is an optional add-on that you must elect to include in your policy. Even if you have full coverage, rental reimbursement needs to be added separately if you want it as part of your protection.

Get Affordable Auto Insurance For Your Teen In 3 Steps

Posted on October 24, 2024October 31, 2024 by Craig-Peterson Agency

Becoming an independent driver is a milestone for many teenagers in Durham and Raleigh, NC. It’s exciting to watch your teen gain independence, but with that excitement comes the responsibility of securing the right auto insurance.

The good news? We’ve made it easy for you with three simple steps to get affordable auto insurance for your teen driver.

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1. Customize Affordable Car Insurance For Your Teen

To lower the cost of insuring your teenage driver, ask your agent about these discounts:

Good Student Discount

If your teen maintains good grades, they may be eligible for a discount. Insurance companies often reward academic achievement with lower premiums.

Driver Training Discount

Teens who complete a certified driver training course may qualify for savings. This shows insurance companies your teen is committed to being a responsible driver.

Student Away At School Discount

If your teen is away at college and only drives when home for holidays, you may be able to get a reduced rate.

Discounts Based On Safe Driving Habits

Many insurers offer discounts for using apps or devices that monitor safe driving. This is a great way to reinforce good habits while also reducing your premium.

Other Options To Reduce Young Adult Insurance Premiums

Talk to your agent about additional options like increasing deductibles or adjusting coverage levels to better fit your budget without sacrificing protection.

2. Bundle Your Insurance Policies

One of the easiest ways to save on your teen’s auto insurance is to bundle it with your home or other auto policies. Bundling your policies doesn’t just offer financial savings, though. It also simplifies your insurance management by consolidating everything with one company.

Plus, if you already have a good relationship with your insurance provider, they’ll often offer extra perks or customer loyalty benefits when you bundle additional coverage for your teen.

3. Add Your Teen To Your Existing Policy

Beyond cost savings, adding your teen to your policy ensures they have the same level of coverage that you and other family members have access to. This would include coverages liability, collision, and comprehensive coverage.

Plus, most insurance companies offer a broader range of discounts, such as family plans or loyalty rewards, which can further lower your premium.

Keep in mind that while your rates may increase with a new teen driver on the policy, adding them to your existing plan is still generally less expensive than starting a separate policy from scratch.

Speak with your agent at Craig-Peterson Agency to see how much you can save by adding your teen to your policy and ask about any additional discounts available for multi-car families or safe driving habits.

Other Things To Know About Car Insurance For Teenage Drivers

When it comes to car insurance for teenage drivers, there are a few important factors to consider that could impact your premium and coverage options:

How Much Is Car Insurance For Your Teen?

Car insurance premiums for teenage drivers are typically higher than for more experienced drivers, and this is because insurance companies consider teens to be high-risk. Due to their lack of experience and higher likelihood of being involved in accidents, teenage drivers are statistically more likely to file claims, which drives up their insurance costs.

In North Carolina, the rates for teen drivers can vary depending on factors like where you live, the type of vehicle they drive, and the coverage options you select. While this might seem daunting, there are several strategies to reduce the overall cost:

Encourage safe driving habits: Many insurers offer discounts if your teen uses telematics devices or apps that track and report safe driving behaviors.
Take advantage of good student discounts: If your teen maintains a certain GPA, this can lead to savings on your premium.
Choose a vehicle wisely: Insuring a used, safe, and moderately-priced vehicle can keep costs lower than insuring a brand-new or high-performance car.

By exploring these options with your agent, you can find a balance between necessary coverage and affordable premiums for your teen driver.

Will The Rate Drop When My Teen Turns 18 Or 21?

Yes, your teen’s car insurance rates will likely drop as they grow older, gain more driving experience, and maintain a clean driving record. Here’s how it typically works:

At 18 years old: Some insurance companies may slightly reduce rates as your teen transitions into legal adulthood. However, the decrease may not be significant at this age because they are still considered relatively inexperienced drivers.
At 21 years old: Most insurance companies will lower rates more noticeably once your teen reaches 21. By this time, they’ve had several years behind the wheel and are statistically less likely to be involved in accidents than they were as younger teens.

To ensure your teen qualifies for these rate drops, it’s essential that they maintain a clean driving record free of accidents, tickets, or other infractions. Even one traffic violation can result in higher premiums, so safe driving is key to unlocking these discounts over time.

Should Your Teen Driver Have Their Own Policy?

While it’s generally more affordable to add your teen driver to your existing auto insurance policy, there are certain situations where having a separate policy might make sense.

If your teen owns their own vehicle: If the vehicle is titled in their name, your teen may need their own policy to ensure proper coverage. Some insurance companies require that the person listed on the policy is also the owner of the vehicle.
Different coverage needs: If your teen needs different coverage limits or options than your household policy offers, a separate policy might be necessary. For example, if your household carries a higher level of coverage for adults, but you prefer lower coverage for your teen to save on costs, separate policies may be the best route.

Keep in mind that separate policies for teenagers are usually more expensive. You’ll want to discuss the pros and cons of both options with your agent at Craig-Peterson Agency to find the most cost-effective solution that still provides adequate protection.

Will They Have The Same Coverage For All Vehicles?

Yes, when your teen is added to your auto insurance policy, they will typically have the same coverage for all vehicles listed on the plan. This means that if your household has multiple cars, your teen is covered no matter which one they drive. However, there are a few things to consider:

Primary vehicle usage: Be sure to list your teen as the primary driver of the car they will use most often. This helps ensure that your rates are accurate and reflects their actual driving habits. If your teen regularly drives multiple vehicles, it’s important to disclose this to your insurer to avoid any coverage issues in the event of a claim.
Coverage levels: Your teen will have the same liability, collision, and comprehensive coverage as the rest of your family. If you feel your teen needs additional coverage or protection, you can adjust your policy accordingly.

Adding your teen to your existing policy not only simplifies coverage but also helps ensure they have access to the same level of protection as the rest of your household.

Get Coverage For Your Teen Today

Getting auto insurance for a teen doesn’t have to be complicated or expensive. At the Craig-Peterson Agency, we’re here to guide you through the process.

To learn more, contact our team in Raleigh, NC today at 919-772-5202 or 919-544-8484. Our agents are standing by, ready to take your call.

Auto Insurance Companies We Work With

We partner with trusted insurance carriers to ensure you get the best coverage for your family’s needs. Ask us about our partnerships and the specific discounts available for teen drivers.

Car Insurance For Teenage Drivers FAQ

Do I need to add my teen driver to my auto insurance policy?

Yes, once your teen is licensed and driving, you need to add them to your auto insurance policy to ensure they are covered.

What is a DL-123 and why do I need it?

A DL-123 is a form required in North Carolina to prove your teen has insurance coverage when applying for a driver’s license.

How long will I have to pay a higher rate for my teen driver?

You’ll typically pay higher rates until your teen gains more experience, with rates generally decreasing around age 21 if they maintain a clean driving record.

Should I lower my coverage to save money?

Lowering your coverage can reduce premiums, however we don’t recommend reducing coverage. Lowering your coverage will leave you financially exposed in case of an accident. It’s important to balance cost with adequate protection.

Do You Need Personal or Commercial Auto Insurance?

Posted on April 29, 2024October 31, 2024 by Craig-Peterson Agency

Do you sometimes use a personal vehicle for commercial purposes? If so, you may need to buy a commercial auto insurance policy to avoid being denied compensation if you’re involved in an accident.

When Does a Personal Vehicle Need Commercial Auto Insurance?

Raleigh, NC residents will need commercial auto insurance if a personal vehicle is used for the following purposes:

Business deliveries– If you work for DoorDash, Uber, Lyft, or similar companies, you’ll need commercial auto insurance.
Travel to and from markets- Do you sell goods at a local market? If so, you may need commercial insurance. This depends on the type of items you transport. Talk to a knowledgeable insurance agency such as Craig Insurance Group for expert advice.
Travel to meet with clients- Do you regularly travel to meet clients or business partners or to close sales? You’ll need commercial insurance if you use your vehicle for this purpose.
Employee Travel- Your vehicle will need commercial insurance if you want coverage for employees who are using the vehicle for business-related work.

What is and isn’t Covered by Commercial Auto Insurance?

A basic commercial auto insurance policy covers bodily injury, property damage, collisions, and medical payments. It also includes liability coverage and uninsured motorist coverage. However, it doesn’t cover the theft of the vehicle. It also won’t cover theft, damage, or loss of valuable business assets stored in or transported by the vehicle.

Get Insurance Assistance from Craig Insurance Group Today

We take pride in helping Raleigh, NC, entrepreneurs find the right insurance policies for their businesses. Contact us to learn more about commercial auto insurance options or to get a quote on your chosen policy.

Car Repairs That Affect Safety

Posted on May 19, 2023October 31, 2024 by Craig-Peterson Agency

Buckling up your seatbelt is not the only way to stay safe in your car. Keeping up on needed car repairs can also help to ensure you are safe when driving. Here at Craig Insurance Group, serving the greater Raleigh, NC community, we want to help drivers do all they can to stay safe out on the road.

These are the car repairs that affect safety:

Replacing Tires

Riding around on worn-out tires is a huge safety risk that you should not be taking. Often people put this off because replacing tires can be expensive. However, having a tire blow out on you unexpectedly is often much more expensive. This increases the risk of you having an accident and might also result in needing a tow. In the long run, you save money by replacing tires at the appropriate times.

Windshield Wipers

Windshield wipers are not often the first thing we think of when we consider necessary car repairs, but worn-out windshield wipers can create an unsafe driving situation in rainy conditions. Poor quality or worn down wipers will not clear the windshield properly, and so your visibility will be greatly impacted. This can increase the chances of you having an accident. If you start to notice wipers working less efficiently, change them out as soon as possible.

Brakes

Brakes are probably the most important aspect of your vehicle’s safety features. Brakes are a consumable part of your vehicle, though, which means that over time they need to be replaced. During an oil change, it is a good idea to have your brakes evaluated so that you know if they are in good working order. Your mechanic can advise you on when you should replace the brakes for optimum safety.

We Can Help!

If you would like to learn about vehicle insurance, please contact us at Craig Insurance Group, serving Raleigh, NC and the surrounding areas.

Do I Need Rental Reimbursement Coverage?

Posted on May 31, 2022October 31, 2024 by Craig-Peterson Agency

If you have been shopping for car insurance in Raleigh, NC, you have likely been advised to consider adding rental reimbursement coverage to your policy at some point. You should get rental reimbursement coverage because it’s among the essential auto insurance add-ons that you can get.

Here’s what to know.:

1. What Is Rental Reimbursement Coverage?

Suppose you get into a collision, and your vehicle is damaged, and you have collision or comprehensive coverage as part of your auto insurance cover. In that case, the insurer will pay to repair it. According to reliable statistics, the average duration for a car repair after a collision is 11 days. This means that you will not have your car for the period of the repair and you need alternative transport which will cost you extra. Rental reimbursement coverage will pay the additional cost of you using alternative transportation.

2. Why Do You Need Rental Reimbursement Coverage?

There are numerous advantages to having rental reimbursement coverage on your auto policy. This is why at Craig Insurance Group, we encourage you to get this coverage. The advantages are:

Cheaper cost: Paying for alternative transportation out of pocket when your vehicle is being repaired after a collision can be very expensive. This is especially true if you have to rent a car. Getting rental reimbursement coverage is a cheaper alternative. The coverage is usually affordable because most insurers have business deals with car rental companies.
Convenience: Not having a mode of transportation can be very disruptive to your life, especially if you hadn’t set aside some emergency money for this purpose in advance. Having rental reimbursement coverage as part of your auto policy eliminates this hurdle. Additionally, your insurer will conveniently provide you with a rental car as soon as they take away your vehicle for repair.

Are you a Raleigh, NC, resident looking for auto insurance with useful coverage add-ons? Contact Craig Insurance Group today.

What can happen if I do not have auto insurance?

Posted on June 14, 2021October 31, 2024 by Craig-Peterson Agency

Those that are in the Raleigh, NC area will enjoy the great economy and variety of local amenities. If you are looking to maximize your experience in this community, owning a car is a great option as it will make it much easier for you to get around. Along with purchasing a vehicle here, you also need to get insurance for it. If you do not have proper auto insurance here, you could face a few different setbacks.

No Protection for Vehicle

If you do not get an auto insurance plan when you are in North Carolina, you will first be disadvantaged by not having protection for your vehicle. A vehicle can cost someone a significant amount of money to purchase and maintain. At the same time, it is something that you will rely on to get around the community. If you do not get proper coverage for it, you could lose the vehicle and not have a way to replace it if there is a bad accident or it is stolen.

Violation of Law

If you are not actively insured and drive your vehicle around North Carolina, you could also find yourself in violation of state law. Anyone that wants to drive here needs to carry liability insurance at all times to comply with the law. If you do not have this coverage, you will face various penalties.

Having an auto insurance plan continues to be a necessity for people in the Raleigh, NC area. If you would like to get an insurance plan here, calling Craig Insurance Group can be a great option. The team with the Craig Insurance Group understands how important this coverage is, and they can offer the support needed to understand your options and choose a plan.

3 Tips for First Time Auto Insurance Buyers

Posted on November 29, 2020October 31, 2024 by Craig-Peterson Agency

Becoming an independent driver is a milestone for many teenagers in Durham and Raleigh, NC. Even if you decided to wait to buy your first car, the thrill is the same. The sun is shining, the window is down, and your favorite song is playing on the radio. But wait…did you buy your auto insurance yet? Before you can register and drive the streets and highways of North Carolina, you’ll need to secure an auto insurance policy through an agent like Craig Insurance Group. If you’re wondering what that entails, we’ve laid out the process in three easy steps.

Work with a Reputable Agent

The first step is to reach out to a friendly, reputable agent at Craig Insurance Group. We are here to answer all your questions and guide you through the auto insurance buying process. Once you get started, you’ll see just how easy it is. There’s no pressure, simply a reputable agent giving you knowledge and information to make an informed decision.

Compare Quotes

Next, you and a reputable agent will compare several auto insurance quotes. Together you can compare cost and coverage and determine which policy is right for you. Take notes, if you like, and take your time making a decision. There’s no rush.

Bundle Your Policies

Finally, if you have any other insurance policies, like home or life, you can bundle these under one carrier to save on your premiums. Ask your agent about this.

Are you ready to purchase your first auto insurance policy? To learn more, contact our team in Raleigh, NC today at 919-772-5202 or 919-544-8484. Our agents are standing by, ready to take your call.