Beijing drivers waiting to have their cars repaired after collisions have long faced the frustration of paying to rent a car - or going without a vehicle altogether.

That problem is a thing of the past, thanks to a new insurance coverage option now available in Beijing.

PICC Group's Beijing branch on Tuesday announced it is cooperating with China Auto Rental Ltd, one of the country's leading rental car providers, to offer rental car reimbursement coverage for its clients.

"The cooperation has been the first and the largest one between an insurance company and a car rental company in Beijing," said Wang Jingchen, general manager of the PICC Group's Beijing branch.

"The price war in the car insurance market is over," said Wang. "We have entered into an era in which competitors vie for high-quality service and creative products. We strive to meet every detailed need of Beijing's car owners."

PICC Group is China's top non-life insurer. In Beijing it provides coverage to more than 1.35 million motorists.

PICC customers can choose an option that provides loaner vehicles when insured vehicles are being repaired for a cumulative total of 60 days per year.

This add-on costs from 207 to 300 yuan per year.

Having that coverage could be a godsend for motorists who must bide their time as the dings and dents get hammered out. Sixty days of car rental might cost more than 10,000 yuan in the capital.

Rental reimbursement coverage kicks in only when the vehicle is not drivable or is in the shop being repaired.

Lu Zhengyao, president of China Auto Rental Ltd, said in countries such as United States, where the car insurance business is booming, thanks to relatively innovative options, rental reimbursement coverage is commonly purchased.

Partnerships are also getting wheels spinning, said Lu.

"We see Hertz, a renowned car rental company, has developed mature systems in United States to work with various insurers," Lu said. "In China, the business has just started."

He revealed the two companies will first enhance their services in Beijing - where China Auto Rental Ltd will have more than 100 service networks by the end of the year - and gradually expand the model to other parts of China.

The rental company will have 500 outlets on the mainland by the end of the year.

Some customers might need a little convincing to be steered toward the concept, however.

Qi Shuai, a Beijing resident who drives his Hyundai to the office, said he believes the auto insurance add-on is a bit of a gamble.

"You might not need the coverage at all, because everything goes OK," Qi said. "Of course, don't you think any kind of insurance is a little similar to gambling?"

The total number of vehicles and car drivers in Beijing reached 4.3 million and 5.92 million in May.

According to the Beijing municipal government, the traffic volume on some major avenues has far exceeded the roads' planned capacity. Additionally, the number of fatal car accidents has risen greatly compared with the same period last year.