Rental Car Coverage On Your Personal Auto Policy

Rental reimbursement coverage is an optional coverage on your insurance policy that can help protect you financially in case of an accident, or other covered event, that leaves your vehicle in need of repairs. In essence, it provides you with coverage for the cost of renting a car while your own vehicle is being repaired, up to a certain limit.

If you rely on your car to get around and can’t afford to be without it for an extended period of time (whether that is a day, or two weeks), rental reimbursement coverage can be a lifesaver. Here’s what you need to know about this type of coverage.

What Does Rental Reimbursement Coverage Cover?

Rental reimbursement coverage is designed to help you pay for a rental car while your own vehicle is being repaired or replaced from a covered claim. It covers the cost of renting a car for a certain period of time, up to and within the policy limits. The specific terms and limits of your rental reimbursement coverage will depend on your carrier and the coverage selected.

Most policies will cover the cost of a rental car for a reasonable amount of time. In general, we see most policies limit the rental to a certain dollar amount, and up to a certain time frame.

It’s also important to note that rental reimbursement coverage only applies if your vehicle is being repaired or replaced as a result of a covered event, such as an accident or theft. If your car is in the shop for routine maintenance or repairs that aren’t covered by your insurance policy, you won’t be able to use your rental reimbursement coverage.

How Does Rental Reimbursement Coverage Work?

If you’re involved in an accident or your car is stolen, you’ll need to file a claim to start the process of getting your car repaired or replaced. If you have rental reimbursement coverage, you can also request a rental car at this time.

If your vehicle is still driveable, then it is usually best to continue using your vehicle until the shop is ready to begin work on your car. This is important to note, because most policies will only pay for a rental vehicle for a certain amount of time. If you have an accident today, and the car is still driveable, and you get into a rental car today, but the shop is not able to begin repairs for 5 weeks, you may end up using all of your available rental car coverage before your car ever goes into the shop.

Who Sets Up The Rental?

Your insurance provider will typically work with a rental car company to arrange for a rental car to be delivered to you, either at the repair shop or at another location. You’ll need to provide your insurance information and may be required to pay a deposit or provide a credit card for the rental.

In most cases, once your rental car is delivered, the insurance company will be paying the rental car company directly for the vehicle. Every so often, you may have to pay out of pocket and submit for reimbursement to your carrier. This is usually the case when you are renting from a company that is not a preferred vendor of your carrier. It is important to ask your insurance adjuster who the preferred vendor is for rental vehicles. Your agent should also know this answer as well!

Is Rental Reimbursement Coverage Worth It?

Rental reimbursement coverage can be a valuable addition to your car insurance policy if you rely on your vehicle and can’t afford to be without it for an extended period of time. However, it’s important to weigh the costs and benefits of this coverage carefully to determine if it’s worth it for your specific situation.

The cost of rental reimbursement coverage varies depending on your insurance provider and the specific terms of your policy. In general, the cost of this coverage is relatively low.

If you do need to use your rental reimbursement coverage, the cost of renting a car for a few days or even a few weeks can quickly add up. The price a customer pays for a rental vehicle, is often much higher than the contracted rate an insurance company has pre-negotiated with a rental car provider.


Our opinion is that rental reimbursement is always worth the little bit of extra premium. Main circumstance where this is not true, is when you own multiple other vehicles and can afford to be without one vehicle for an extended period of time. If you have the same number of vehicles as you do drivers, then it is worth adding rental reimbursement coverage!

Give us a call or fill out the form below if you want to learn more about this coverage!

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