Auto insurance can be a confusing topic, especially when it comes to understanding the different coverage options available. One coverage option that is often overlooked is “Part 9 Substitute Transportation” coverage, also known as rental reimbursement coverage. In this blog post, we will discuss how substitute transportation coverage on your Massachusetts auto policy works.
What is Substitute Transportation Coverage?
Substitute transportation coverage is an optional coverage that can be added to your Massachusetts auto insurance policy. This coverage helps pay for the cost of renting a vehicle if your car is being repaired due to a claim or is stolen. This coverage can also help pay for public transportation or ride-share services in lieu of renting a vehicle.
How Does Substitute Transportation Coverage Work?
If you are in an accident and your car needs repairs or is stolen, substitute transportation coverage can help cover the cost of renting a vehicle. This coverage typically has a daily limit and a maximum total amount that the insurance company will pay. For example, if your daily limit is $30 and your maximum total amount is $900, the insurance company will pay up to $30 per day for a maximum of 30 days.
It is important to keep in mind that rental car companies may require a deposit or a credit card hold when you rent a vehicle. The insurance company will not cover these costs, so it is important to have a credit card or other payment method available to cover these expenses.
How to Add Substitute Transportation Coverage to Your Massachusetts Auto Policy
If you are interested in adding substitute transportation coverage to your Massachusetts auto insurance policy, you should contact your insurance agent. This coverage is typically an optional add-on, so you may need to pay an additional premium to add it to your policy.
When adding substitute transportation coverage to your policy, you will need to select the daily limit and maximum total amount that you want to be covered for. It is important to choose limits that you are comfortable with and that will adequately cover the cost of renting a vehicle if your car is damaged or stolen. Higher limits should be selected if you drive a truck, mini-van, large SUV, or luxury vehicle.
In Conclusion
Substitute transportation coverage is an optional coverage that can be added to your Massachusetts auto insurance policy. This coverage helps pay for the cost of renting a vehicle if your car is damaged and needs to be repaired or is stolen. When adding this coverage to your policy, be sure to select limits that you are comfortable with and that will adequately cover the cost of renting a vehicle. If you have any questions about substitute transportation coverage or any other coverage options on your Massachusetts auto policy, be sure to contact your insurance agent for more information.
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