Rental reimbursement is an optional auto insurance coverage that can help pay for a rental car when your insured vehicle is being repaired due to a covered claim. While it can help cover rental costs during repairs, it may not apply to routine maintenance, non-covered incidents, or repairs unrelated to a covered claim. It's also important to note that rental car insurance is an additional coverage and typically applies when renting a vehicle for personal use, like for a trip or vacation.
How rental reimbursement works
Policyholders must have an active claim related to a covered incident to access rental reimbursement. Once the claim is filed and accepted, the insurance company can work with the driver to arrange for a rental vehicle. Coverage limits may include a daily dollar amount and a total cap on rental car costs. For example, a policy may cover up to $30 per day for a rental vehicle, sometimes with a maximum reimbursement of $900 for 30 days of coverage.
Some insurers may work directly with rental car companies, while others may require policyholders to pay upfront and submit receipts for reimbursement. It’s important to remember that rental reimbursement applies only while the insured vehicle is in the shop for repairs related to a covered claim and does not extend to non-covered incidents.
Who should consider rental reimbursement coverage?
Rental reimbursement coverage may be ideal for drivers who rely on their vehicles for daily transportation. It can be especially useful if you can’t access a second vehicle or public transportation. This coverage can help you limit out-of-pocket expenses while your car is being repaired due to a covered claim.
Rental reimbursement vs. rental car insurance
Rental reimbursement can help cover the cost of a rental car when your insured vehicle is being repaired after a covered claim. In contrast, rental car insurance may provide coverage when renting a vehicle for personal use, such as for going on a business trip, road trip, or vacation. Rental agencies typically will offer rental car insurance, while rental reimbursement is an add-on option that auto insurers usually offer.
If you're unsure which coverage best suits your needs, call IIA at 1-855-478-3705 or get a free quote online today!
Frequently Asked Questions
Can I use rental reimbursement for any type of vehicle rental?
Typically, rental reimbursement can help cover the cost of a standard rental car. Some policies may restrict the type of vehicle you can rent.
Is rental reimbursement available with all auto insurance policies?
No, rental reimbursement is not available through all insurers. You’ll need to check with your insurance agent to see if it can be added to your coverage.