Recently, my in-laws encountered a three-car collision scenario. The vehicle ahead of them came to a halt due to a turtle on the road. Responding to the situation, my relatives came to a stop as well. Unfortunately, the driver behind them failed to brake in time, resulting in a forceful rear-end collision that propelled their car into the one in front.
Thankfully, no injuries were sustained, but their vehicle was declared a total loss. Given the involvement of three cars and the usual presumption of fault towards rear-ending drivers, the ensuing circumstances became somewhat intricate, requiring time for resolution. The silver lining, however, was a specific optional auto insurance coverage that played a significant role in mitigating the financial impact.
A Critical Post-Accident Insurance Coverage
So, what insurance provision came to our rescue after the accident? It’s known as rental car reimbursement coverage.
This insurance coverage doesn’t relate to protection while driving a rental vehicle. Rather, it empowers policyholders to secure a rental car, with the associated costs covered by their auto insurance provider. This provision proved invaluable as my family awaited decisions about the fate of their wrecked car and the compensation they would receive for it.
By having this coverage in place, they managed to avoid the inconvenience of being without a car for weeks, which would have been especially challenging since we reside in an area not conducive to walking and they are actively engaged in various commitments. Moreover, there was no need to personally cover the expenses of renting a car.
Instead, they swiftly acquired a rental sedan on the very day of the accident. The majority of the rental fees are being borne by their insurer, leaving them with a minimal charge of just $2 per day for the rental vehicle.
Reviewing Insurance Coverage: A Necessity for Every Driver
Interestingly, my in-laws had almost forgotten that they had opted for this insurance while signing up for their auto coverage. Typically available as an add-on rather than a standard inclusion, this policy ended up being a considerable financial safeguard. The extra premium costs for rental coverage were nominal, only a few dollars per year, making the protection remarkably cost-effective in relation to the eventual payout from the insurance.
Regrettably, numerous drivers might have omitted signing up for this or similar optional coverage, possibly settling for the bare minimum that legal requirements dictate. Such a decision could prove to be shortsighted, leading to substantial out-of-pocket expenses in the event of an accident, even if they are not at fault.
Every driver should diligently review their existing coverage and explore supplementary options provided by their insurance company. This step is crucial to ensure appropriate protection against the risk of sizeable bills following a collision. It’s advisable to undertake this review promptly to preemptively avert any potential remorse arising from unfortunate incidents.