Will your insurance policy cover the cost of a rental car after an accident?

What will you do if you get into an accident and your car is so badly damaged you can't drive it? Well, if you need wheels, you'll rent a car of course. But how much will you have to pay for the privilege?

Many people assume the answer is "nothing," because rental car coverage is part of their auto insurance policy; but the truth is it's rarely automatically included. If you want to spare yourself the hassle of having to pay hundreds of dollars to rent a car while waiting for yours to be repaired after a crash, you need to purchase optional rental reimbursement coverage.

The good news - it's not too expensive. When seeking auto insurance quotes, you'll be pleasantly surprised to find the premiums range from just $20 and $60 every six months for this optional coverage.

Before you decide to purchase this coverage, however, it's important to remember that your automobile insurance policy only gives you rental car reimbursement if you are in an accident. If your car breaks down due to mechanical failure or normal wear and tear, a temporary rental car would not be covered by your policy. Although if you opted for towing coverage, the cost of getting your car to the garage would be covered.

When deciding whether to add rental car reimbursement to your policy, there are a few things to keep in mind:

* Depending on how your policy is set up, you may need to pay the bill upfront and get reimbursed later.

* Since car insurance rates for this type of coverage are so low, the amount of money you are allowed to spend may be limited.

* If you want to be able to drive a more expensive model, oftentimes there is an increased limit available for a nominal cost. Or you could pay for an upgrade out-of-pocket.

Courtesy of ARAcontent