Auto Insurance And Rental Coverage: Understanding Your Options During Mechanical Repairs

If your car breaks down, you might be wondering if your insurance will cover the cost of a rental while it's being repaired. The short answer is: it depends. If your car is in the shop due to a collision or covered claim, your insurance company will pay for a rental car as long as you have rental reimbursement coverage. However, if your car is being repaired due to mechanical issues or routine maintenance, your insurance will not cover the cost of a rental vehicle.

Rental reimbursement coverage is an optional add-on to your car insurance policy that pays for a rental car while your vehicle is being repaired from a covered claim. It is not automatically included in standard policies and may require full coverage. This type of coverage typically has daily and overall cost limits, and you will be responsible for any expenses that exceed these limits.

It's important to review your insurance policy or check with your insurance provider to understand what is covered and what your specific limits are.

Rental reimbursement coverage

To add rental reimbursement coverage to your policy, you typically need to carry comprehensive and collision coverage as well. Some insurers have partnerships with rental car companies that streamline the reimbursement process, while others may require you to submit receipts for reimbursement separately. It is also worth mentioning that rental reimbursement coverage does not include fuel costs, security deposits, or any additional rental car insurance purchased from the rental company.

The cost of rental reimbursement coverage varies by insurer, but it is generally an affordable option. For example, a year's worth of rental reimbursement coverage typically costs about the same as renting a car for just one day.

When considering rental reimbursement coverage, it is important to review the specific terms and conditions of the policy, including any limitations or exclusions, to ensure that it meets your needs and expectations.

Rental car replacement coverage

It's important to note that rental car replacement coverage has its limits. For example, your policy may pay up to $30 per day for a rental for up to 30 days. So if you choose a more expensive vehicle or need the car for longer than a month, you'll have to pay any additional fees for your rental out of pocket.

Additionally, rental car replacement coverage does not cover rental cars for non-accident-related reasons, such as routine maintenance, breakdowns, or vacations. If your car breaks down due to a mechanical defect or breakage, rental car replacement coverage will not help pay for a rental.

The cost of rental car replacement coverage is typically low, but it's still an added expense. Whether you need this coverage depends on your individual circumstances. If you have alternative transportation options or access to another vehicle, you may not need this coverage.

Collision coverage

If you have collision coverage and your car is in the shop for repairs, your insurance company may pay for the cost of renting a replacement vehicle. However, this depends on the specifics of your policy. Some policies automatically include the cost of a rental car while your car is repaired, while others require you to add rental car reimbursement as a rider to your policy.

Rental car reimbursement is a relatively inexpensive add-on, typically costing around $100 per year. It is important to note that rental car reimbursement only covers the cost of a rental car if your personal vehicle needs repairs after a collision or other insured loss. It does not cover rental cars for vacation or business purposes, and it does not cover mechanical breakdowns or routine maintenance.

If you rent a car, the rental company may offer you collision coverage in the form of a loss damage waiver, which states that you are not responsible for collision damage to the vehicle. This is not technically insurance coverage, but it can provide peace of mind in case of an accident. Your credit card company may also offer rental car insurance if you use it to pay for the rental.

Comprehensive coverage

If you have comprehensive coverage and your car is in the shop for damage that was covered, your rental reimbursement coverage will kick in and pay for the cost of a rental car. However, mechanical breakdowns are generally not covered by auto insurance, so rental reimbursement will not cover the cost of a rental car if your car is in the shop for routine maintenance or mechanical repairs.

Public transportation reimbursement

However, it is important to note that mechanical breakdowns, routine maintenance, and basic repairs are generally not covered by auto insurance. This means that if your car breaks down due to a mechanical issue, rental car reimbursement coverage will not apply, and you will be responsible for the costs of a rental car or public transportation.

Rental car reimbursement coverage is usually a supplemental coverage option that you can add to your insurance policy for a relatively low cost. This type of coverage is subject to limitations, including daily limits and maximum coverage periods. It is important to carefully review your policy to understand the specific details of your rental car reimbursement coverage.

Frequently asked questions