Will Your Auto Insurance Leave You Stranded if You Make a Covered Claim?

Drivers who make a claim on their auto insurance should be compensated for covered losses minus any deductible that applies.

This means that if an accident happens or a car is stolen or a vehicle is damaged by another covered cause, insurance should pay to repair the vehicle or pay to replace it if it is a total loss. By providing this coverage, insurance protects drivers from draining their checking account when things go wrong.

It can take time for insurance to pay out, or for drivers to get their check and get repairs done or purchase a new vehicle though. In the meantime, the big question is, will those drivers be left stranded?

Drivers could be in trouble without this insurance coverage

If a driver is in a position where they have to make an insurance claim, the motorist will need to go through a multistep process. This includes letting the insurer know about the accident, waiting for a coverage determination to be made, and waiting for an adjuster to assess the damage.

During the period of time while the claims process is unfolding, the policyholder making the claim will probably need something to drive. And, this most likely means that they are going to rent a car unless they happen to have a spare vehicle just sitting around (and most people don't).

Renting a car can be expensive, though. And while covered drivers might expect that their insurance company will cover this if the insurer is picking up the tab to repair or replace the vehicle, that is not necessarily the case in all situations. Specifically, an insurer is only going to cover the cost of a rental car for drivers who have purchased rental car insurance coverage.

Rental car insurance coverage is an optional add-on for most policies. It adds only a few dollars to annual insurance premiums. It typically pays for a rental car up to a certain per-day limit while an insurance claim is being resolved. If a driver does not opt to buy it, though, their insurer probably isn't going to cover the costs of a temporary vehicle, so they could be left stranded.

Does every motorist need rental car insurance?

Whether paying for rental car insurance coverage is worth it or not depends on each driver's specific situation.

Drivers who have a spare vehicle may not need this added protection, since they could just switch to driving their other car if a crash occurs or their car is stolen. Likewise, people who don't really need to drive and who only use their car occasionally may be able to get by without a vehicle for quite a while if things go wrong. This could include people who live in a walkable area, for example, and who only use their car for big -- and occasional -- trips.

Those who rely on their car, though, may want to think seriously about paying the small added cost of rental car insurance. Doing so can help ensure they aren't left with regrets if they get stuck making an insurance claim and have to pay out-of-pocket for a rental for weeks while they wait for everything to resolve.