Yes, Liberty Mutual covers renting a vehicle while the vehicle is in the shop for repair, but only if your car was damaged in an accident, you filed a claim that was approved and has rental reimbursement coverage. With rental reimbursement coverage, your car insurance can help you pay for a replacement rental car. However, mechanical breakdowns are generally not covered by car insurance. Even when you have a good level of coverage, it's sometimes better to buy additional rental car insurance.
Rental reimbursement coverage, also called replacement transportation coverage or rental car expense coverage, can help you pay for transportation costs if your car is in an auto repair shop due to a covered loss. Because New York has strict laws on all drivers who have car insurance, there are penalties for drivers caught driving without insurance. Your car insurance may be able to cover the costs of a replacement rental whenever the damage to your car was caused by a covered loss. If you didn't do anything before renting the car, you can opt for collision damage exemption (CDW) at the counter to be safe or, better yet, save money by taking out affordable insurance from a third-party provider before leaving the rented car park.
This information may be different from what you see when you visit the website of an insurance provider, insurance agency, or insurance company. Car accidents are expected and can't always be avoided, so many insurance companies will give you a discount on your rate if you've only had one accident. So, if you have an older car that has accumulated a ton of miles, you may not have enough coverage to rent a full-size or luxury car. Rental reimbursement coverage is optional, but it's a relatively inexpensive supplement to your car insurance policy and generally won't increase your premiums significantly.
But how do you know which car insurance company to choose? Who will give you the best peace of mind? Which companies have received complaints and which companies are about to go bankrupt? It may give you peace of mind to shell out car rental insurance and know that you won't pay more than that amount. Michael earned a degree in Business Administration with a specialization in insurance, leading to a successful 25-year career in insurance claims operations and support. Two claims in one year can significantly increase your insurance rates, so you may want to exercise caution and purchase insurance. This means that if your car breaks down due to mechanical problems, even if you have rental car reimbursement coverage, it won't cover the cost of a replacement rental car.
