Rental Reimbursement Auto Insurance: What You Need To Know

Rental reimbursement auto insurance is an optional coverage that helps pay for a rental car if your vehicle is damaged or destroyed due to a problem covered by your policy, like a crash, flood or fire. This type of coverage can be added only when you have comprehensive and collision coverage in your car insurance policy. It usually doesn't have a deductible, but you will have a deductible on your collision and comprehensive coverage to get your car fixed. Rental reimbursement coverage generally has daily and per-claim limits, and it's important to check for specific coverage information as these limits will vary by insurer.

Rental reimbursement coverage is optional

Rental reimbursement coverage is not included in minimum insurance policies and is not required in any state. However, if you choose to add it to your policy, it will typically cover the cost of a rental car up to a certain dollar amount per day and for a set number of days. The exact coverage limits will vary depending on your insurer, so it is important to review the specific details of your policy.

In most cases, rental reimbursement coverage does not have a deductible, which means you won't have to pay a deductible amount before your insurance company starts reimbursing you for rental car expenses. However, it's important to note that this coverage only applies if your vehicle has been in an accident or experienced damage covered by your policy. Mechanical breakdowns or routine maintenance are generally not covered.

The cost of adding rental reimbursement coverage to your auto insurance policy will vary depending on the insurer and other factors such as your location and the type of car you drive. It is generally considered an inexpensive addition to your policy, providing valuable peace of mind in case of unexpected events.

It covers the cost of a rental car while your car is repaired

Rental reimbursement auto insurance is an optional coverage that helps pay for the cost of a rental car while your car is being repaired after an accident or another problem covered by your policy. This type of insurance is especially useful if you don't have another vehicle to use while your car is in the shop, as it can save you from the unexpected expense of renting a car for an extended period.

Rental reimbursement coverage typically applies when your car has been damaged in a covered accident and can't be driven. It is important to note that this coverage does not apply if your car is in the shop for routine maintenance or a mechanical breakdown. In most cases, you will need to have comprehensive and collision coverage on your auto insurance policy to be eligible for rental reimbursement.

When you have rental reimbursement coverage, your insurance company will usually have daily and per-claim limits on the amount they will reimburse for rental costs. For example, your insurer might reimburse you for up to $30 per day and up to $900 per accident. It's important to check the specific coverage limits offered by your insurer, as they can vary.

The process of obtaining a rental car and reimbursement can also depend on whether your insurer has partnerships with rental companies. Some insurers have relationships with rental car companies that allow for seamless reimbursement, while others may require you to submit receipts separately. If your insurer has a partnership with a rental company, you may be able to bill your rental car directly to them, although this is less common.

Rental reimbursement coverage is a valuable option to consider adding to your auto insurance policy, especially if you don't want to be stuck paying for a rental car out of pocket while your vehicle is being repaired. It provides peace of mind and helps ease the transition while your car is in the shop, ensuring you can stay mobile without incurring unexpected costs.

It doesn't cover fuel or security deposits

Rental reimbursement auto insurance is an optional coverage that pays for a replacement car or other transportation costs while your primary vehicle is in the shop after an accident. This type of insurance is only available if you have comprehensive and collision coverage in your car insurance policy. It usually doesn't have a deductible, but there are daily and per-claim limits on how much the insurance company will pay. For example, your insurer might pay up to $30 per day for rental expenses but no more than $900 per accident claim.

Rental reimbursement coverage typically doesn't cover fuel or security deposits. It also doesn't cover routine maintenance or vacation rental cars. This coverage is specifically for when your car is being repaired due to a problem covered by your policy, like a crash, flood, or fire. If you need a rental car for reasons other than an accident, such as routine maintenance or a vacation, you will need to pay for it yourself.

It's important to note that rental reimbursement insurance is different from the insurance you purchase when renting a car for business or vacation. The latter is not tied to an insurance claim and can be bought whenever you rent a car. On the other hand, rental reimbursement coverage is added to your personal car insurance policy and is meant to provide a rental car while your primary vehicle is being repaired after an accident.

While rental reimbursement coverage can be a valuable addition to your auto insurance policy, it's not required in any state and may not be worth it if you have alternative transportation options or don't anticipate needing a rental car in the event of an accident.

You can choose any rental company

Rental reimbursement auto insurance is an optional coverage that can help pay for a rental car if your vehicle is damaged in a covered accident and cannot be driven. This type of insurance is particularly useful if you do not have access to alternative transportation while your car is being repaired. Typically, you will need to carry comprehensive and collision coverage to be eligible for rental reimbursement.

One of the benefits of rental reimbursement coverage is that it gives you the freedom to choose any rental company you prefer. You are not restricted to specific rental companies and can select the one that best suits your needs and budget. This flexibility allows you to compare prices, vehicle options, and customer service across different rental car providers.

However, it's important to note that some insurers may have partnerships with certain rental companies, which can streamline the reimbursement process. In such cases, the rental company may bill your insurance company directly. If you choose to rent from a different company, you may need to pay the rental costs upfront and then seek reimbursement from your insurance provider. This process typically involves submitting receipts to your insurance company for reimbursement.

When selecting a rental company, it's essential to consider factors such as price, vehicle availability, and customer service. Reading reviews and comparing prices from multiple companies can help you make an informed decision. Additionally, it's worth checking with your insurance provider to see if they have any specific requirements or recommendations for choosing a rental company.

By opting for rental reimbursement coverage, you gain the independence to choose any rental company that meets your needs. This freedom ensures that you can maintain your mobility and convenience while your vehicle is being repaired, without being limited to specific rental company options.

It's inexpensive to add to your policy

Rental reimbursement auto insurance is an optional, inexpensive addition to your policy that can save you money in the long run. It is a type of coverage that helps pay for a rental car or alternative transportation methods if your car is damaged or destroyed due to a problem covered by your policy, such as a crash, flood, or fire. It is important to note that this coverage is different from rental car insurance, which you would purchase for a vacation or business trip.

The cost of adding rental reimbursement coverage to your policy varies depending on factors such as the length of time you anticipate needing a rental car, the type of car you drive, and the company you choose. On average, it costs less than $5 per month to add this coverage to your policy. For example, for a policy with a $30 limit per day, there is typically a $900 maximum per incident, which could provide you with a rental car for up to 30 days while your car is being repaired.

It is worth noting that rental reimbursement coverage has daily and per-claim limits. For instance, if your coverage has a $30 per day and $900 per claim limit, your insurer will reimburse you for rental expenses up to $30 per day, with a maximum of $900 per accident claim. If you rent a car that costs more than the insurance limit, you will be responsible for paying the difference.

Some insurers may have partnerships with rental car companies, allowing for direct billing to the insurance company. However, if you choose to rent from a different company, you may need to pay the costs upfront and then seek reimbursement from your insurance provider.

In conclusion, adding rental reimbursement coverage to your policy is generally inexpensive and can provide valuable peace of mind. It ensures that you have access to alternative transportation while your vehicle is being repaired without incurring significant additional expenses.

Frequently asked questions