Rental car coverage reimburses you for the cost of your rental car if your insured vehicle is in the shop or is unavailable due to an accident. It’s important to know that you need to have comprehensive and collision on your policy to add rental car coverage. Depending on the rental duration and the type of rental car you select, your policy may cover most or all of the associated costs. If the rental exceeds your coverage limits, you’ll be responsible for covering the difference.

This coverage won’t help pay for non-damage-related rentals, for example one you may need on vacation. In addition, it won’t pay for any damage incurred due to a non-covered event, such as your car breaking down in your driveway. Your rental costs can only be reimbursed after you file a claim on the incident that made the rental a necessity. 

Why have rental car coverage?

After an accident that leaves you car less and you have to rent, the costs can add up. Especially if you find you will need the car for a few weeks or longer.

Knowing your car insurance will help pay for the costs of the rental can make a big difference for your wallet and your peace of mind.

How Rental Car Reimbursement works

Rental car reimbursement can vary according to the policy. It’s important to read your policy carefully to determine if all or a portion of the rental costs will be covered. This is typically specified using a daily limit and an overall maximum amount. For example, rental reimbursement coverage defined as 30/600 provides a maximum of $30 per day and overall maximum of $600 during the entire time the vehicle is being repaired.

You can only get auto rental coverage if you’re involved in an accident and have to use your insurance to pay for the claim if you are at fault or an uninsured motorists hits you.