Rental Car Reimbursement Coverage Explained (2024)
Rental reimbursement coverage pays you back for the days you rent a car while your vehicle is being repaired. Rental car reimbursement is only available in connection with a covered claim under comprehensive or collision. Rental reimbursement auto insurance costs $2 to $15/mo. Once your car repairs are complete, your rental car reimbursement insurance payment will be issued for fees and costs equal to the number of days you rented a car, up to the limits of your policy. .
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Dani Best
Licensed Insurance Producer
Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...
Licensed Insurance Producer
UPDATED: Jul 25, 2024
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jul 25, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Rental car reimbursement compensates you after you’ve rented a vehicle while it’s getting repaired.
- Major auto insurance companies offer rental reimbursement for $2 to $15 per month.
- You can’t use rental reimbursement coverage for business or vacation travel.
- Some states don’t require at-fault providers to pay for rental car expenses.
Rental reimbursement coverage is known for paying back your rental car expenses after your motor vehicle is repaired.
The rental car reimbursement program is one of the cheap auto insurance options that make it convenient for a driver who doesn’t have a vehicle to drive after an accident and provides a financial solution to compensate for the loss.
Continue reading this guide to learn how rental reimbursement coverage works. If you want to compare rental car reimbursement quotes, enter your ZIP code in the free online quote tool above.
What is rental reimbursement coverage?
Rental car reimbursement is a popular coverage option that compensates a policyholder for each day they’ve rented a car while their damaged vehicle is getting repaired. Rental reimbursement accompanies collision insurance and comprehensive insurance claims.
Collision and Comprehensive Auto Insurance
Two vehicle coverages that are essential to rental car insurance are collision coverage and comprehensive coverage.
What is the difference between collision and comprehensive auto insurance? It’s important to understand the distinction.
Collision auto insurance provides compensation for property damage that involves collision. However, comprehensive car insurance pays for accidents that don’t involve a collision, such as falling objects, bad weather, fire, and even vehicle theft damage.
The National Association of Insurance Commissioners (NAIC) reports that collision and comprehensive coverage are very inexpensive. Here are the national averages for collision coverage and comprehensive coverage.
National Average Collision and Comprehensive Auto Insurance Rates
| Auto Insurance Coverages | Average Monthly Auto Insurance Rates | Average Annual Auto Insurance Rates |
|---|---|---|
| Collision Auto Insurance | $27 | $324 |
| Comprehensive Auto Insurance | $12 | $144 |
Under collision and comprehensive claims, rental car insurance is an investment that saves you money for the long term.
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How does rental reimbursement coverage work?
Rental reimbursement kicks in when your vehicle is being repaired, and you get a rental car while you wait. Your rental reimbursement may be delayed until your car’s repairs have been completed.
While you wait for repairs to get down, which could be a few days, you will need to rent a car to get around. You’ll likely pay out-of-pocket, but rental reimbursement will pay you back for each rental day.
However, there is a limit to how much your insurer will pay per day. Contact your auto insurance provider to learn about its rental car reimbursement limits.
How much does rental reimbursement cost?
It depends on the company, but your rental reimbursement coverage could add $2 to $15 per month to your auto insurance bill. The limit for rental cars could be $30. However, it varies for each company.
Rental Reimbursement Coverage: The Bottom Line
Rental cars are under special auto insurance, so you won’t have to worry about additional insurance coverages. When you buy rental reimbursement auto insurance, you can further secure your finances while your vehicle is being repaired.
The key to affordable rental reimbursement auto insurance rates is to find the right company. We can help you to do that with our our free comparison tool below.
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Frequently Asked Question: Rental Reimbursement Coverage
Check out a few answers to frequently asked questions regarding rental car reimbursement.
#1 – Will the at-fault driver’s auto insurance company pay for my rental?
It depends on whether the at-fault driver’s coverage. In this situation, it’s better to have collision coverage and rental reimbursement on your policy. Prepare for some back and forth.
#2 – What’s the daily limit for rental vehicles?
The standard rental limit for rental car reimbursement coverage is typically $30 per day but some companies offer higher limits.
#3 – Is rental reimbursement coverage worth it?
Yes. You may have to pay upfront, but your auto insurance company will pay you back once the repairs are finished.
#4 – Does rental reimbursement coverage have a deductible?
You may have to pay an auto insurance deductible before the insurer compensates you for anything. Standard deductibles are between $250 to $1,000. A higher deductible will lower your auto insurance rates.
Frequently Asked Questions
What is rental car reimbursement coverage?
Rental car reimbursement coverage is an optional add-on to your auto insurance policy that helps pay for the cost of renting a substitute vehicle while your car is being repaired or replaced due to a covered claim.
Why would I need rental car reimbursement coverage?
Rental car reimbursement coverage can be beneficial in situations where your car is temporarily out of commission due to an accident, theft, or other covered event. It helps ensure that you have a means of transportation during the repair or replacement process, minimizing the inconvenience and potential disruption to your daily routine.
How does rental car reimbursement coverage work?
If you have rental car reimbursement coverage and your car qualifies for a covered claim, your insurance company will reimburse you for a portion of the rental car expenses up to the limit specified in your policy. The coverage typically includes the daily rental rate and may also cover related expenses such as taxes and fees.
Is rental car reimbursement coverage mandatory?
Rental car reimbursement coverage is not mandatory in most states. It is an optional coverage that you can choose to add to your auto insurance policy. However, considering the potential benefits and convenience it offers, it’s worth discussing with your insurance provider to determine if it aligns with your needs.
How much does rental car reimbursement coverage cost?
The cost of rental car reimbursement coverage varies depending on factors such as your location, driving history, and the coverage limits you choose. Typically, it is an affordable add-on that can be added to your auto insurance policy for an additional premium.
Are there any restrictions or limitations to rental car reimbursement coverage?
Yes, rental car reimbursement coverage may have certain restrictions and limitations. Common restrictions include a maximum daily reimbursement limit, a maximum number of days covered, and certain vehicle class limitations. It’s important to review the terms and conditions of your policy or consult with your insurance agent to understand the specifics of your coverage.
Can I choose any rental car I want if I have rental car reimbursement coverage?
The rental car options available to you may vary depending on your insurance policy. Some policies provide flexibility in choosing the rental car you prefer, while others may have restrictions on vehicle class or reimbursement limits. It’s advisable to check your policy or consult with your insurance provider to understand any limitations or guidelines when renting a substitute vehicle.
Do I need rental car reimbursement coverage if I have a backup car or alternate transportation?
While having a backup car or alternate transportation can be convenient, it may not always be available or practical. Rental car reimbursement coverage provides an additional layer of assurance, ensuring that you have a reliable means of transportation when your primary vehicle is undergoing repairs or replacement. It’s worth considering this coverage even if you have backup options available.
How do I file a claim for rental car reimbursement?
If you need to file a claim for rental car reimbursement, you should contact your insurance company or agent directly. They will guide you through the claims process and provide the necessary forms and instructions to initiate the reimbursement. Make sure to keep all relevant receipts and documentation related to the rental car expenses as you may be required to submit them as part of your claim.
Does rental car reimbursement coverage apply if my car is in the shop for routine maintenance?
No, rental car reimbursement coverage typically applies only to covered claims resulting from accidents, theft, or other specified events. Routine maintenance, such as oil changes, tire rotations, or regular inspections, is not typically covered under this type of coverage. It’s important to review your policy or consult with your insurance provider to understand the scope of your rental car reimbursement coverage.
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Dani Best
Licensed Insurance Producer
Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...
Licensed Insurance Producer
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.