We have been getting calls from clients who are under the impression that they can use the Substitute Transportation portion of their policy to rent a car after their car has broken down.
In order to purchase Substitute Transportation coverage, you also need to purchase Collision and/or Comprehensive coverage.
Under the policy, if you have collision coverage, the company will pay for a rental while your auto is being repaired or replaced after an accident. If you have comprehensive coverage, the company will pay for a rental if your vehicle is stolen or damaged from an accident other than a collision claim.
When you purchase Substitute Transportation, you will have the option of picking how much the company will pay per day. Your options are $15, $30, $45, or $100 a day. Based on the amount your pick there will be a maximum the company will pay. The company could pay up to 30 days. For the $15 per day, the maximum the company would pay is $450. For $30 per day, the maximum would be $900. For $45 per day, the maximum would be $1350. For $100 per day, the maximum would be $3,000.
The company will only pay for a reasonable period of time of having your auto repaired or replaced.
If your auto is stolen, you must report the theft to the company and the police. The company will start to pay for Substitute Transportation 48 hours after you have notified the police and the company. When your car is located, then the Substitute Transportation stops within a day.
If you have any questions, please feel free to give our office a call at 781-659-2262, or check out our website.