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    Rental Reimbursement With Downtime

    Rental Reimbursement With Downtime

    According to Statista, there are more than 273.6 million motor vehicles registered in the U.S. in 2018. With a majority of these automobile-owners using their vehicles to aid with their employment, ensuring that they have a backup vehicle in the event of an accident is crucial.

    Indeed, for people or owner-operators who use their cars, trucks, or any other motor vehicle to earn a living, vehicle breakdowns due to an accident can be financially devastating. A week or two off the road to have a vehicle repaired is a loss of income.

    Rental Reimbursement With Downtime

    During these instances, the best option for owner-operators is to rent a replacement vehicle. This is why having rental reimbursement with downtime coverage on top of truck insurance.

    With the increasing frequency of vehicle breakdowns across the country, knowing how to efficiently deal with the effects of it and its financial costs can help drives minimize their time off the road while keeping your business running smoothly.

    The Benefits of Rental Reimbursement with Downtime

    During situations where a vehicle needs to get repaired, commercial truck or car rental services are great alternatives to keep income flowing. Here are some of the most important reasons why business owners should consider it before sending their commercial truck fleet back on the road.


    Knowing that you can get a rental truck whenever you need one is convenient. Although the business should be able to provide the affected driver with a temporary truck, it can be a problem for some commercial truck companies who are in a pinch.

    Rental Reimbursement With Downtime

    Smaller trucking companies often don’t have a spare truck in their garage, which means that the business will then need to hire or borrow from another trucking company. Even if it’s for just a day or two, a truck that’s out of commission can affect a business' entire operations.

    What's more, truck companies follow a strict schedule and have contracts to honor. The delay in the delivery of products and goods can leave an unpleasant impression on clients.

    A delay can also result in spoilage which can result in additional expenses that would need to be covered. 


    It is also worth noting that hiring a truck during emergencies can be very expensive. Most trucks for hire get scheduled weeks or months in advance. Urgency can jack up the rental costs, which is a separate thing that businesses will have to cover.

    Making sure that your truck insurance policy will cover a temporary vehicle is more cost-efficient. This is especially the case if the repairs for a truck will take longer.

    There is no need for the trucking company to shoulder the cost of renting a truck if it is covered by the policy. Even if the company has to initially shoulder the rental costs, the company can file for reimbursement later on.

    Fully-Serviced and Maintained

    Rental companies keep their vehicles in top condition. Rental trucks are often fully-serviced and well-maintained. This gives customers peace of mind since they know that they are using a vehicle that’s properly inspected and without any issues.

    In getting a rental truck, the business can also make sure that the vehicle that it is renting suits the company’s needs. The trucking company can choose a truck that will work best for the type of product that it transports.

    Rental Reimbursement Processes

    There are two ways to initiate a claim for rental reimbursement with downtime. The difference lies in the accident that prompted the trucking company to need a rental vehicle. 

    Rental Reimbursement With Downtime

    If the driver of the trucking company claimant is at fault, the company is entitled to rental fee coverage, if the company has rental reimbursement coverage. If this is the case, the trucking company needs to get in touch with its own truck insurance company or insurance agent to file a claim. 

    If the other driver is at fault, the trucking company needs to get the contact and insurance information of the offending party. Ideally, the insurance provider of the offending party should claim liability and provide a rental truck.

    If there are delays in the other insurance company providing a rental truck, there is also the option to front the rental cost or rent through its own insurance provider. The business can then seek rental reimbursement with downtime from the other party’s insurance policy later.

    Frequently Asked Questions

    How much does rental reimbursement cost?

    A driver may need to pay around $30 to $70 per year for basic rental reimbursement, which they will need to factor into their income. The total price will vary depending on the make and model of the car that a driver uses. Another factor that can affect the price of rental reimbursement with downtime is the length of time that a driver needs a rental vehicle.

    Rental reimbursement with costs also varies depending on the amount of time that a driver spends on the road. A commercial truck business can expect higher costs since they use their vehicles for long drives.

    How long does rental reimbursement downtime usually take?

    It will depend on the insurance company and the existing commercial truck insurance policy that a driver has. However, most large insurance companies cover rental expenses for up to 30 days.

    Additional Resources

    What To Do During a Vehicle Breakdown

    A helpful article with information on what a driver should do (or services to avail of) in case of a vehicle breakdown. 

    Car Care Maintenance Tips

    Useful tips on how to properly maintain a car to avoid breakdowns and insurance claims.

    How To Keep a Vehicle in Good Shape

    Helpful tips on how to prolong the usable life of a vehicle and keep it in good running condition.

    Getting Collision Insurance for Your Trucking Business

    For most people, a car is not just a mode of transportation. It is a partner that helps provide a source of income while allowing people to work on the road.

    Losing a vehicle due to an accident can cause financial loss. Vehicle owners, operators, and employers can avoid these with a rental reimbursement policy as part of their commercial truck insurance coverage.

    Don’t get blindsided by an accident! Get rental reimbursement with downtime now to make sure your vehicles can go back on the road as soon as possible and your operations aren't compromised. For all of your truck insurance needs, contact us at Assured Standard today!

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