Rental Car Reimbursement Coverage in 2026 (Insurance Guide)

Rental car 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. Compare the cheapest auto insurance companies for the best value on your policy.

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.

Understanding 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. 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.

Collision and Comprehensive Auto Insurance

Two vehicle coverages 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

Under collision and comprehensive claims, rental car insurance is an investment that saves you money for the long term.

Understanding How Rental Reimbursement Coverage Works

Auto insurance premiums for rental reimbursement take effect when your car is under repair, covering the cost of a rental vehicle during this period. Reimbursement might be postponed until your vehicle’s repairs are finalized.

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. Discover how your auto insurance can cover rental cars when your vehicle is in the shop.

The Essentials of Rental Reimbursement Coverage

Rental cars are under special auto insurance, so you won’t have to worry about additional insurance coverage. When you buy rental reimbursement auto insurance, you can further secure your finances while your vehicle is being repaired. Find out if you need proof of insurance to rent a car at most rental agencies.

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Finding the right company is the key to affordable rental reimbursement auto insurance premiums. We can help you do that with our free comparison tool below.