Is Truck Rental Reimbursement Coverage Necessary in a Not-at-Fault Accident?
This is a question I hear frequently and one that doesn’t always have an obvious answer.
Let’s take a look at a recent claim to highlight the nuances of this coverage. One of our Moving & Storage insureds was in a no-fault accident. They had not purchased any rental reimbursement, instead relying on the Uninsured Motorists Property Damage coverage in their own policy, which in California, has a maximum available limit of $3,500. The insured needed to rent a truck to avoid interruption to their business. The time to repair the vehicle was lengthy, so the cost of the rental plus the damage claim exceeded the limit available. The coverage to the vehicle was being paid under the vehicle’s collision coverage.
In this case, would Rental Reimbursement coverage have been advisable?
Yes, and here’s why. I recommend that an insured look at Rental Reimbursement coverage in terms of supplementing their own budget for this expense. If this insured had been covered for Rental Reimbursement for $250/day for 6 months, their premium would have been $1,750 more per similar vehicle/year, but the cost of renting a straight truck for 6 months would have been fully covered, saving them over $25,000 in rental vehicle expenses.
Flexible Coverage Options
Rental Reimbursement coverage is based on a daily rental amount and number of days. For example, you can purchase coverage for $100/day for 90 days or $250/day for 365 days. Premiums can vary just as auto rates vary from vehicle to vehicle and territory to territory. Coverage only applies when there is a covered cause of loss and no deductible applies to this loss.
If you are interested in learning more about how this coverage can work to keep Moving & Storage operations running optimally during a loss, contact your Mover’s Choice underwriter.
Written By: Terri Moran
Terri’s career spans many years with roles in Leadership, Underwriting and Marketing. She was responsible for one of the largest Moving & Storage programs nationally, serviced by dedicated Moving & Storage brokers. In her spare time, in addition to enjoying her family, she is a Member and Past Chair of the Board of Directors for the Surplus Lines Association of California.