Reasonable Doesn't Always Mean Cheapest

A consumer contacted our office after noticing that part of his rental vehicle expenses had been denied following a claim.

Because the insurer’s preferred rental provider could not reasonably accommodate the consumer’s location and circumstances, the consumer obtained a rental vehicle from another provider closer to home. The daily cost was higher, and the insurer initially declined to reimburse the difference, taking the position that a less expensive option had been available elsewhere.

After reviewing the policy wording, we raised concerns that the coverage referred to reasonable expenses incurred, rather than strictly the lowest-cost option available. Following further review, the insurer reconsidered its position and agreed to reimburse the additional rental costs.

Consumer takeaway: Coverage decisions should be based on the wording of the policy and the specific circumstances involved. The least expensive option is not always the only reasonable one.