Rental Car Reimbursement

Rental reimbursement coverage pays you back for the days you rent a car while your vehicle is being repaired. Rental car reimbursement is only available in connection with a covered claim under comprehensive or collision. Rental reimbursement auto insurance costs $2 to $15/mo. Once your car repairs are complete, your rental car reimbursement insurance payment will be issued for fees and costs equal to the number of days you rented a car, up to the limits of your policy. .

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Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Jan 24, 2021

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Things to Remember

  • Rental car reimbursement compensates you after you’ve rented a vehicle while it’s getting repaired.
  • Major auto insurance companies offer rental reimbursement for $2 to $15 per month.
  • You can’t use rental reimbursement coverage for business or vacation travel.
  • Some states don’t require at-fault providers to pay for rental car expenses.

Rental reimbursement coverage is known for paying back your rental car expenses after your motor vehicle is repaired.

The rental car reimbursement program is one of the cheap auto insurance options that make it convenient for a driver who doesn’t have a vehicle to drive after an accident and provides a financial solution to compensate for the loss.

Continue reading this guide to learn how rental reimbursement coverage works. If you want to compare rental car reimbursement quotes, enter your ZIP code in the free online quote tool above.

What is rental reimbursement coverage?

Rental car reimbursement is a popular coverage option that compensates a policyholder for each day they’ve rented a car while their damaged vehicle is getting repaired. Rental reimbursement accompanies collision and comprehensive claims.

Collision and Comprehensive Auto Insurance

Two vehicle coverages that’s essential to rental car insurance is collision coverage and comprehensive coverage.

What is the difference between collision and comprehensive auto insurance? It’s important to understand the distinction.

Collision auto insurance provides compensation for property damage that involves collision. However, comprehensive car insurance pays for accidents that don’t involve a collision, such as falling objects, bad weather, fire, and even vehicle theft damage.

The National Association of Insurance Commissioners (NAIC) reports that collision and comprehensive coverage are very inexpensive. Here are the national averages for collision coverage and comprehensive coverage.

National Average Collision and Comprehensive Auto Insurance Rates
Auto Insurance CoveragesAverage Monthly Auto Insurance RatesAverage Annual Auto Insurance Rates
Collision Auto Insurance$27$324
Comprehensive Auto Insurance$12$144
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Under collision and comprehensive claims, car rental insurance is an investment that saves you money for the long term.

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How does rental reimbursement coverage work?

Rental reimbursement kicks in when your vehicle is being repaired, and you get a rental car while you wait. Your rental reimbursement may be delayed until your car’s repairs have been completed.

While you wait for repairs to get down, which could be a few days, you will need to rent a car to get around. You’ll likely pay out-of-pocket, but rental reimbursement will pay you back for each rental day.

However, there is a limit to how much your insurer will pay per day. Contact your auto insurance provider to learn about its rental car reimbursement limits.

How much does rental reimbursement cost?

It depends on the company, but your rental reimbursement coverage could add $2 to $15 per month to your auto insurance bill. The limit for rental cars could be $30. However, it varies for each company.

Rental Reimbursement Coverage: The Bottom Line

Rental cars are under special auto insurance, so you won’t have to worry about additional insurance coverages. When you buy rental reimbursement auto insurance, you can further secure your finances while your vehicle is being repaired.

The key to affordable rental reimbursement auto insurance rates is to find the right company. We can help you to do that with our our free comparison tool below.

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Frequently Asked Question: Rental Reimbursement Coverage

Check out a few answers to frequently asked questions regarding rental car reimbursement.

#1 – Will the at-fault driver’s auto insurance company pay for my rental?

It depends on whether the at-fault driver’s coverage. In this situation, it’s better to have collision coverage and rental reimbursement on your policy. Prepare for some back and forth.

#2 – What’s the daily limit for rental vehicles?

The standard rental limit for rental car reimbursement coverage is typically $30 per day but some companies offer higher limits.

#3 – Is rental reimbursement coverage worth it?

Yes. You may have to pay upfront, but your auto insurance company will pay you back once the repairs are finished.

#4 – Does rental reimbursement coverage have a deductible?

You may have to pay a deductible before the insurer compensates you for anything. Standard deductibles are between $250 to $1,000. A higher deductible will lower your auto insurance rates.

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