Let’s face it. . . . a loss to your truck is expensive. Not only do you have the expense to tow and repair your truck (which in most cases will be covered by your Physical Damage policy), but there are also the additional unanticipated expenses, such as downtime or the cost to rent a replacement truck. It can be hard to know in advance what the exact amount of this expense will be . . . you can never foresee how long you’ll be “down.” But did you know that in many cases there are endorsements available that may help reduce your expense?
These endorsements are commonly referred to as Rental Reimbursement or Downtime Coverage and are added to your Physical Damage policy. Rental Reimbursement or Downtime Coverage is not available unless you have also purchased a Physical Damage policy and in some cases, the insurance company may not even offer these endorsements at all.
While there are differences between these two endorsements, the theory behind both is similar. The purpose of Rental Reimbursement or Downtime Coverage is to reimburse you a specific dollar amount per day for a specified number of days while your truck is being repaired. Some insurance companies will include the Rental Reimbursement or Downtime Coverage endorsements as a standard part of the Physical Damage policy form, while others will charge an additional premium for this coverage. Limits range by company, often times falling somewhere between $65 – $150 per day for 15-45 days.
Some things to keep in mind when considering these coverages include:
1.) Is there any coverage provide in your Physical Damage policy at no additional cost to me?
2.) What is the daily reimbursement limit? Is this enough to off set the cost to rent a replacement tractor? Are higher limits available?
3.) How many days of reimbursement will the insurance company provide? Does this seem adequate? If not, are additional days available?
4.) For Downtime Coverage, do you need to demonstrate a loss of income? Will you receive the full amount of reimbursement even if your daily income is shown to be less than that amount?
5.) For Rental Reimbursement, what if a replacement vehicle isn’t available or you borrow a friend’s truck? Will you still receive the Rental Reimbursement?
6.) Will you need to provide receipts demonstrating the cost of your replacement?
7.) What is the cost of the endorsement?
All of us at the Navigator Truck Insurance Agency work hard at being accessible, helpful and result oriented. Need help understanding this coverage or any other? Give us a call (800) 596-TRUCK (8782). We’d be happy to help you out any way we can.
Until next month,
Jeffery A. Moss, ARM
President