When your car is out of commission due to an accident, the last thing you need is to be stranded. Fortunately, if you have rental reimbursement coverage with GEICO, you can maintain your mobility while your vehicle is being repaired. This optional coverage is designed to help policyholders pay for a rental car after a covered claim. But how long will GEICO actually pay for a rental car? Let’s delve into the specifics of GEICO’s rental reimbursement to give you a clear understanding.
Decoding GEICO Rental Reimbursement Coverage
Rental reimbursement is an add-on coverage in your car insurance policy that activates when your car is undergoing repairs due to a covered incident, such as a collision. It’s important to note that this coverage is subject to both a daily limit and a maximum limit per claim.
For instance, if your policy specifies a limit of $25 per day and $750 per claim, GEICO will cover up to $25 each day towards your rental vehicle, with a total cap of $750 for the entire claim. This means the duration GEICO pays for your rental car depends on your daily limit and the total claim limit, alongside the repair time of your vehicle.
GEICO offers a convenient option by partnering with Enterprise Rent-A-Car®. If you choose to rent through Enterprise, GEICO can be billed directly, simplifying the process for you. However, you are not restricted to Enterprise; you have the freedom to choose any rental company. If you opt for a different provider, you might need to pay upfront and then seek reimbursement from GEICO, up to your coverage limits. It’s always wise to inquire with your chosen rental company about direct billing options to streamline the payment process. Regardless of the rental company, be prepared to provide a credit card for a security deposit, as this is standard practice.
How Long Does GEICO Rental Reimbursement Last?
Generally, GEICO will pay for your rental car until one of two conditions is met first: your vehicle repairs are completed and it’s ready to be back on the road, or you have reached the maximum limit of your rental reimbursement coverage.
In cases where your vehicle is declared a total loss, the rental reimbursement timeline changes. GEICO will only authorize a limited amount of rental time in such situations. This is because once your car is deemed a total loss, the focus shifts from repair to replacement. Therefore, if your car is totaled, it’s crucial to start looking for a replacement vehicle as soon as possible, keeping in mind that rental coverage will soon end.
What’s Not Included in GEICO Rental Reimbursement?
While rental reimbursement is a valuable coverage, it’s essential to understand its limitations. GEICO’s rental reimbursement typically does not cover expenses such as gasoline, mileage charges, additional insurance offered by the rental company, or any security deposit requested by them.
Often, rental car companies will propose additional insurance when you rent a vehicle. It’s worth knowing that if you already have comprehensive and collision coverage on your GEICO policy, these coverages usually extend to your rental car while your primary vehicle is being repaired due to accident damage. Whether or not to purchase extra insurance from the rental provider is ultimately your decision. For detailed advice tailored to your situation, consulting with your GEICO liability examiner can provide clarity and help you make an informed choice.
Furthermore, while GEICO typically allows you to rent a car of comparable size to your own vehicle, you will be responsible for any amount exceeding your daily rental reimbursement limit. If the repairs to your car are expected to take a considerable amount of time, opting for a rental car with a lower daily rate could be a strategic move. This approach can help extend your rental reimbursement benefits for a longer duration, ensuring you remain covered until your car is fixed.
Disclaimer: This information is for general guidance only and does not alter or expand the terms of your insurance policy. For precise details regarding your coverage, please refer to your GEICO policy contract. In Virginia, it’s important to note that “Rental Reimbursement” is referred to as “Transportation Expense.”
