RENTAL COSTS ARE RISING
Your Coverage May No Longer Be Adequate If You Need It!
Rental coverage on your commercial auto policy reimburses you for the cost of temporary replacement of the vehicle identified or listed on your policy . . . with a comparable vehicle when your vehicle is out of service due to a Collision or Comprehensive loss.
Like everything else these days, the cost of vehicle rentals — which you will need if you incur damage to your vehicle due to a collision or, you experience a comprehensive loss. . . continues to increase and your current Rental Reimbursement benefit may no longer be adequate to meet your needs.
NOTE: Rental reimbursement coverage does NOT cover the cost for a rental if your vehicle is out of service for a mechanical breakdown or regular maintenance.
The rental rates for most popular truck sizes such as the 16’ and 26’ with lift gates HAVE increased significantly.
The current Penske rates have increased by 23% on the 16’ truck and by 36% on the 26’ truck when compared to their previous rates. This means what previously cost $77 and $95 per day now costs $95.00 and $130.00 respectively.
THE NEW REALITY
Your current rental reimbursement limit is only $80 a day for up to 45 days.
Based on the new rental reimbursement rates from Penske AND what we are seeing with our other customers, it means your existing coverage limit is probably NOT ENOUGH.
Please contact our office to increase your limits. Cost for an increase varies by state, but the increase we recommend costs less, on average, than $100 a year per vehicle.
Your “Rental Reimbursement” coverage is probably no longer adequate to fully reimburse you if your vehicle is “in the shop” for an extended period.
We strongly recommend you call DSD Insurance at (205) 621-1770 to learn if your current coverage is adequate for your needs and what options you have if you want to increase your coverage limits for the future.
Filed Under: Independent Contractors