Rental Reimbursement vs. K4 or K5 Coverage

If you’re involved in a collision in which your car sustains extensive damage or is even totaled, you may be without a vehicle for days or even weeks. If you’re like most people, then that just isn’t going to work for you. Fortunately, your auto insurance provides you with a few different options that can tide you over until your car is repaired or you’re able to purchase a new vehicle.

Rental Reimbursement

One type of additional coverage that can be added to your policy is rental reimbursement. This coverage would reimburse you for either your daily rental charges or your policy limit, whichever is less. It can be used after any covered collision or comprehensive loss (assuming you carry collision and comprehensive coverage).​

K4 and K5 Coverage

K4 and K5 coverage can also help with post-accident “loss-of-use” costs. Loss of Use (K Coverage) reimburses the Insured for a flat sum to assist with expenses incurred for each qualified disablement on a covered vehicle.

• Qualified disablement means a loss covered by the Comprehensive or Collision sections of the policy.
• This optional coverage may be purchased for any vehicle covered by Comprehensive and Collision coverage.
• Collision or Comprehensive loss must exceed the deductible amount on a covered vehicle.

Available limit options are:

• K3 & K4 – $25 per day up to a max of $500 for extra expenses resulting from a Collision or Comprehensive loss.
• Coverage will pay $500 in the event of a total loss (regardless of salvage value).
• If loss occurs over 50 miles away from Insured’s home, K3 & K4 will pay up to $200 extra expense to return the repaired vehicle to Insured’s home or destination.
• K3 & K4 are written in combination and cannot be a stand-alone option.

• K5 – $50 per day for extra expenses resulting from a Collision or Comprehensive loss.
• Coverage will pay $1,000 in the event of a total loss (regardless of salvage value).
• If loss occurs over 50 miles away from Insured’s home, K5 will pay up to $500 extra expense to return the repaired vehicle to Insured’s home or destination.

Seek Help From Nevada Insurance Enrollment

Wondering which type of additional coverage is right for you? Your auto insurance agent can help you weigh your options and choose the one that is best for your needs and lifestyle.