Q&A: Is it ok to buy “Loss of use – car rental” for insurance policy without buying collision?
Question by Curious: Is it ok to buy “Loss of use – car rental” for insurance policy without buying collision?
And if my car insurance policy has both: loss of use and collision, and if I was involved in an accident, is it ok for me to use car rental without claiming collision? Thanks
Best answer:
Answer by CD2007
You can purchase rental reimbursement coverage without having collision. If you are involved in an accident, you would be covered for the rental even if you wouldn’t be covered for the damages. If you have collision coverage and rental, you could only use the rental coverage if you were involved in a covered loss (an accident). In other words, if your car breaks down or if you just need a rental for the weekend, the rental coverage cannot be used.
Edit: In reference to the answer below, I work as a claims rep for an insurance company (one of the largest insurance companies in the US). Although it’s rare, I have handled claims for rental only because the insured did not have collision coverage. Rental reimbursement is purchased separately from collision or comp. Therefore as long as it’s a loss that would normally be covered, the rental coverage can be used.
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Umm, if you don’t have collision coverage, and your car is disabled in a collision, the loss-of-use clause doesn’t apply. If the insurance company isn’t responsibility for the repairs, they can’t be responsible for a rental replacement. If you had collision coverage, and no comprehensive coverage, the loss-of-use clause would not apply in the event of theft or vandalism, because, again, they wouldn’t be paying out on the loss claim.
Comment by Fred C — September 2, 2010 @ 2:43 pm