Rental Reimbursement Coverage

Rental Reimbursement Coverage is a very inexpensive option to add onto your general auto insurance policy that can save you a few headaches. Coverage usually kicks in when you are unable to drive your vehicle for reasons of theft or damage: for example, if your vehicle has been stolen or is being repaired after an accident.

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What Is Rental Reimbursement Auto Coverage?

This is how it works: Let’s say that you are in an accident that’s no fault of your own. You walk away completely unharmed, but your car isn’t as lucky as you are. You auto body shop tells you that your car will not be ready for nearly three weeks. If you have Rental Reimbursement Coverage on your auto insurance policy, you may now rent a car and you will be reimbursed for the bill by your auto insurance company (who will, in turn, get the money back from the at-fault driver’s insurance policy).

Or let’s say that your car is struck by a falling tree as it is parked in your driveway (thank goodness for that Collision Coverage). Rental Reimbursement Coverage will come to your rescue on these types of incidents as well, no matter who or what was at fault.

Some auto insurance providers actually have deals with car rental companies in which you can rent a car with no out of pocket expense for you. The rental company will bill the insurance company directly, leaving you with one less headache.

Coverage limitations will vary among different insurers and states, but usually have a cap at $30.00 per day for a rental car, for no longer than a thirty day period, with a $900.00 cap per accident. Extensions are sometimes granted in extreme circumstances, so check with the auto insurance carrier for more details.

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Is Rental Reimbursement Coverage Right for You?

Although this handy add-on to your auto insurance policy is very inexpensive, you may not need it at all. For example, if you are under the legal age in your state to rent a car, this coverage won’t do you any good. If you live and work in a community with ample public transportation and don’t mind getting around that way, there is no sense in paying the extra money.

Not all insurance companies offer Rental Reimbursement Coverage. Review our auto insurance company profiles to see if the carrier you are considering offers this optional coverage.

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**Auto Insurance Finder is not an insurance broker or carrier. Content on this site is for comparison and informational purposes only. The products and services listed on this site may not be available in all states.

Last Updated: November 10, 2009