Collection Expense Insurance

What Does Collection Expense Insurance Mean?

Collection expense insurance offers coverage for travelers who need to leave their car behind due to personal reasons or mechanical issues. This policy covers various costs, including the expenses for repairs (if applicable), travel costs for one person to retrieve the car from its location, and car storage fees (if applicable). Standard auto policies typically don’t pay for the cost of getting a stranded car back home, which is why some travelers add collection expense insurance on top of their full coverage car insurance.

Insuranceopedia Explains Collection Expense Insurance

Collection expense insurance provides additional protection for travelers when driving their car. If the traveler’s car breaks down or needs to be left behind during a trip, this insurance covers all the necessary expenses to retrieve the vehicle, including repairs. Additionally, it covers storage costs both before and after any scheduled repairs while the policyholder is still traveling, until they return to collect their car. To ensure that collection expense insurance claims are valid, the policyholder must inform their insurance agent of the specific dates of their journey. Travelers who end up driving a rental while their own car is being retrieved should also check whether rental car insurance is something their existing policy already covers.