What is Transportation Expense?
I am often asked questions about Transportation Expense. Transportation Expense is the term we use to describe what is actually Rental Car Coverage. This coverage will pay for a rental car in the event of a covered claim, up to the limit specified on the policy. There are several details that policyholders should be aware of when deciding whether or not to include this coverage on their car insurance policy.
First, Transportation Expense is optional and available only on vehicles that have either comprehensive or collision coverage. It can be in place on one, all, or none of your vehicles. It will not cover the cost of a rental car in the event of mechanical failure. In the event of a mechanical failure, your Roadside Assistance will pay for the cost of your tow bill up to the limit of that coverage. The rental car coverage is only for those instances of a covered claim due to physical damage that has occurred to the vehicle.
Second, Transportation Expense is not for everyone. Most rental car companies have a minimum age requirement of 21, unless you are active duty military. If you are under the age of 25, I recommend that you check with your preferred rental car company before making a decision to add this coverage to your policy.
Lastly, your Transportation Expense coverage may not cover all costs if you are involved in a claim while driving a rental car. Your car insurance policy will cover your claim up to the limits of your policy if you are in an at fault accident. However, there are other costs to be aware of. Your rental car company may charge you Loss Of Use while their vehicle is in the shop for repairs. This is the loss of rental income the rental car company losses while their vehicle is off the road. Your insurance policy may or may not cover this. Using the rental car company’s insurance is a good way to avoid extra costs. If you have their added insurance and have an at fault accident, you will not have to pay their Loss Of Use. You will also not be responsible for a deductible since your accident and claim do not get reported to your insurance company. The rental car company handles everything using their insurance. This will also help keep your insurance rates low by not affecting your accident free discounts or claim free discounts.
If you have any questions about Transportation Expense, give us a call at 540-665-0911 or stop by and see us at 3223 Valley Pike in Winchester.