What Is Rental Reimbursement Insurance
Rental reimbursement insurance helps cover the cost of a rental car while your vehicle is being repaired due to a covered accident. It ensures you’re not left without transportation if your primary vehicle is in the shop after a claim.
What Does Rental Reimbursement Cover?
This optional coverage typically pays for:
- Daily rental car costs while your car is being repaired
- Rental costs for a reasonable replacement vehicle class
- Some transportation alternatives (e.g., ride shares) depending on your policy
What’s Not Covered?
Rental reimbursement insurance does not cover:
- Repairs not related to a covered accident
- Mechanical breakdowns or routine maintenance
- Rental costs beyond your daily or total limit
Do You Need Rental Reimbursement Coverage?
You may want this coverage if:
- You rely on your car for daily commuting
- You don’t have access to a second vehicle
- You want to avoid out-of-pocket rental expenses during repairs
How Much Coverage Do You Get?
Coverage typically comes with daily and total limits, such as:
- $30/day up to $900 total
- $40/day up to $1,200 total
- Higher limits may be available depending on the insurer
Is Rental Reimbursement the Same as Rental Car Insurance?
No — rental reimbursement covers the cost of a rental car after a claim on your personal vehicle. Rental car insurance covers damage to a rental car when you’re renting for travel or vacation.
When Can You Use Rental Reimbursement?
This coverage is only available when your car is being repaired for a claim covered under your policy — usually collision or comprehensive. It doesn’t apply to routine maintenance or breakdowns.
Frequently Asked Questions
1. How much does rental reimbursement coverage cost?
Usually $2–$15 per month, depending on your insurer and chosen limits.
2. Can I use rental reimbursement if my car breaks down?
No. It only applies after a covered accident or claim — not mechanical issues.
3. Can I choose any rental car I want?
You’re limited to the daily rate and class allowed by your policy. Upgrades must be paid out-of-pocket.
4. How long will insurance pay for my rental car?
Until repairs are finished or you reach your policy’s maximum limit (daily or total), whichever comes first.
5. Does rental reimbursement cover rideshares instead of a rental car?
Some insurers allow reimbursement for rideshare trips instead of a rental — but you must confirm with your provider.
Related Coverage Types: