Temporary Transportation Coverage
Temporary transportation coverage refers to an add-on to your Lemonade Car policy that covers transportation expenses like Lyft, Uber, public transportation, bike sharing, or a rental car for up to 30 days while your car is being repaired.
What is temporary transportation coverage?
Getting into a car accident is stressful enough without having to worry about how to get around afterward. That’s why insurance companies offer rental car coverage, which is designed to give you peace of mind—and a car to drive while your ride is in the shop. This coverage is typically optional, but well worth it to save potential hassle.
How do I go about getting my temporary car?
If you are making a claim through your own policy and your vehicle is drivable, you’d receive a rental car at the body shop when you drop off your car. If your car is not drivable, your adjuster might be able to arrange transportation directly with the rental company, or you may have to go to the shop for the rental car.
If you are a claimant—meaning the accident wasn’t your fault, and the claim is going through the at-fault party’s insurance company—you’ll be given a rental or other form of temporary transportation regardless of your own coverage.
Most insurance companies pay directly for the rental car, but you’ll usually have to put down a credit card for incidentals and a deposit. You’ll also be responsible for any damage to the vehicle while in your possession, although many insurance companies do cover their insured while in a rental car. There is a 30 day limit that usually applies when using your rental car coverage.
What if I don’t have rental car coverage?
Most insurance companies require that rental or temporary transportation coverage have already been a part of your policy in order for the rental car to be covered.
If you’ve been in an accident that was your fault, and you don’t have rental car coverage, you’ll have a few choices. You can try to survive without a rental — paying for your own rideshare services, or getting rides from family and friends — or you can rent a car on your own dime. Many auto body shops have great partnerships with car rental companies and may be able to help you get a significantly discounted rate on your rental.
Otherwise, if the weather’s nice, why not dust off that bike in the basement?
What size rental car will I get?
When purchasing your auto insurance policy, you can select the rental car coverage limit you would want in case of an accident. Most of the time, rental car coverage limits are set per day, so you may have options such as $40/day, or $50/day. If you have a lower limit for this coverage you can expect to be rented a car within your selected per day limit, likely a Nissan Versa or another vehicle in the subcompact car class.
You do have the option to select more coverage at the time that your policy is written. If you’d need a larger vehicle to transport your spouse and 7 kids, or an all-wheel drive car to drive in winter conditions, be sure to let your agent know, and choose a higher per day limit for rental car coverage.
However, you may have the option to pay the difference between the coverage you have and the vehicle you need, as well. So if your insurer would pay $50/day, and the rental car you require runs $100/day, you’d simply pony up the difference.
How does Lemonade’s policy work?
If you have both collision and comprehensive coverage on your car, you’ll get the option of selecting temporary transportation coverage for your car.
Most insurance companies will only cover a rental car if you need alternative transportation while your car is being repaired, but Lemonade works differently, and will cover almost any type of transportation for up to a month while you’re waiting for your car to be repaired. That includes Uber, Lyft, rental car expenses, or even public transportation like buses or trains (up to your daily limit).
What happens in the event of a total loss?
Total losses are generally split into two categories: those cars that make it to the repair shop, and those that get taken directly to the salvage facility.
If your car is taken directly to the salvage facility, you’ll need to reach out to your adjuster to discuss temporary transportation.
But let’s say your damaged car is brought to the repair shop, since your insurance company believes it can still be fixed. You rent a car, or start using rideshare services like Lyft. Two days later, the garage calls with some bummer news: Your ride is totalled.
Thankfully, most policies allow for a few days of rental car coverage even after the car is declared a total loss and you are paid the settlement for the amount the car was worth.