Does my car insurance cover rental reimbursement if my car is being repaired?
Repairs for your vehicle after an accident aren't the only costs to consider when shopping for insurance coverage. You may also wonder if car insurance covers rental reimbursement while your car is being repaired, and you'll need to make sure you have rental car reimbursement coverage for these expenses.
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Michael Vereecke
Commercial Lines Coverage Specialist
Michael Vereecke is the president of Customers First Insurance Group. He has been a licensed insurance agent for over 13 years. He also carries a Commercial Lines Coverage Specialist (CLCS) Designation, providing him the expertise to spot holes in businesses’ coverage. Since 2009, he has worked with many different insurance providers, which gives him unique insight into the insurance market...
Commercial Lines Coverage Specialist
UPDATED: Mar 2, 2024
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UPDATED: Mar 2, 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 insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance 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
- Standard full coverage auto insurance doesn’t necessarily include coverage for rental cars while yours is being repaired
- To be reimbursed for your rental, you’ll need to add rental car coverage to your collision and comprehensive policies
- On average, rental reimbursement coverage costs less than $10 per month
Car insurance coverage gives you peace of mind that if you are in a car accident, your vehicle will be repaired so you can get back on the road.
However, vehicle repairs can take days or weeks if the damage is extensive or parts must be ordered from manufacturers or suppliers. Also, if you only have one vehicle, you might not have any other way to get around.
Many people rent a car while it is being repaired, but that can get expensive without insurance. If you’re wondering whether your car insurance will cover rental reimbursement while your car is being repaired, this is what you need to know.
Car Insurance That Covers a Rental Car While Yours Is Being Repaired
If you have full coverage car insurance, you may be covered for any kind of cost or expense related to insured accidents and incidents. For example, basic liability insurance doesn’t cover damages to your vehicle, but adding collision and comprehensive coverage will.
However, this won’t automatically cover your expenses for renting a car while yours is repaired. You’ll typically need to add rental reimbursement to your policy. This optional add-on is designed to help you keep your life moving while your car is out of commission. On average, it costs less than $10 per month. (For more information, read our “Can I get a rental car while my vehicle is being repaired?“).
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How Rental Reimbursement Works
Rental car reimbursement is a type of car insurance coverage that provides a daily allowance for renting a car while yours is in the shop. For instance, you might be able to rent a car worth up to $40 per day until your repairs are complete or up to a predetermined, set number of days.
This coverage usually doesn’t carry a deductible, but you must have comprehensive and collision coverage and file a claim for repairs under one of those policies.
How to Get Reimbursed for Your Rental Car
You need to take several steps to ensure that you will be reimbursed for vehicle rental when filing an insurance claim. These include:
- Before you have an accident, if your insurance policy does not include rental reimbursement, you can request to add an endorsement for your policy.
- Be sure you know how to file a car insurance claim for rental reimbursement, and do so while you file the claim for your vehicle repairs.
- Understand what your rental reimbursement coverage will pay for, both per day and in total, before renting a vehicle. Your coverage will determine what kind of vehicle you can afford to rent.
- Check whether your insurance company works with a rental car company. Some companies have special arrangements with rental companies that might get you better rates.
Once you have everything set up, collect the rental car and confirm all payment details. Remember that you will only be covered when your vehicle is in the repair shop.
Rental Reimbursement When You Are Not at Fault
Rental reimbursement coverage generally applies when you’re at fault in an accident and file a collision or comprehensive claim. If another driver is at fault, their liability insurance should cover the cost of your rental vehicle while your car is being repaired.
It can take time for this kind of coverage to come through because the insurance companies first need to establish who is at fault.
In that case, you could use your rental reimbursement insurance and have your insurance company recover it later. Alternatively, you could pay out of pocket for a reasonable and comparable rental vehicle and then claim the reimbursement from the other insurance company.
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Case Studies: Car Insurance Coverage for Rental Reimbursement
Case Study 1: Comprehensive Coverage With Rental Reimbursement
Sarah had comprehensive car insurance coverage that included rental reimbursement. When her car was involved in an accident and needed repairs, she was able to rent a car while hers was in the shop. Her insurance company covered the rental expenses, providing her with a temporary means of transportation during the repair period.
Case Study 2: Basic Liability Coverage Without Rental Reimbursement
Mark had basic liability car insurance that did not include rental reimbursement coverage. When his car was damaged in an accident, he had to rely on public transportation and borrowing cars from friends while his vehicle was being repaired. He realized the importance of having rental reimbursement coverage to avoid the hassle and inconvenience of finding alternative transportation.
Case Study 3: At-Fault Accident and Rental Reimbursement
Lisa was at fault in an accident that caused significant damage to her car. Fortunately, she had rental reimbursement coverage as part of her car insurance policy. Her insurance company covered the cost of a rental car while her vehicle was being repaired. This coverage allowed her to continue with her daily activities without disruptions and helped her manage the financial burden of renting a car.
Rental Car Reimbursement While Your Car Is Being Repaired
If you want to be sure you’ll have a car to drive after an accident, rental car coverage is a smart investment. This inexpensive coverage will ensure you can afford to rent a vehicle while yours is in the shop.
To explore your options, compare car insurance and find rates and coverage that meet your needs.
Frequently Asked Questions
Will my insurance cover a rental car while my car is in the shop for maintenance?
Rental car reimbursement insurance doesn’t cover rentals for general maintenance. However, many dealers offer loaner vehicles or shuttle services if your car is in the shop temporarily.
Can I rent a car that costs more than my rental coverage will pay?
Most insurance companies specify a daily coverage amount for rental car reimbursement, and this often only covers a basic, entry-level vehicle. However, if you need a larger or more specific vehicle for some reason, you can usually pay the difference between the covered amount and the rental cost.
Will rental car reimbursement coverage pay for bus or cab fares?
Some rental reimbursement policies pay for public transportation or other car rental alternatives. Check the details of your policy to be sure.
Are you looking for free insurance quotes?
Your one-stop online insurance guide. Get free quotes now!
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Michael Vereecke
Commercial Lines Coverage Specialist
Michael Vereecke is the president of Customers First Insurance Group. He has been a licensed insurance agent for over 13 years. He also carries a Commercial Lines Coverage Specialist (CLCS) Designation, providing him the expertise to spot holes in businesses’ coverage. Since 2009, he has worked with many different insurance providers, which gives him unique insight into the insurance market...
Commercial Lines Coverage Specialist
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.