Does Your Car Insurance Cover Rental Vehicles After an Accident?
Rental reimbursement coverage is optional, but it can save you a lot of stress and out-of-pocket costs if your car ends up in the shop after a covered accident. If you’re unsure whether to include it in your policy, here’s what you should know.
How Rental Coverage Works
If you have rental reimbursement coverage, your insurance can help pay for a rental car while your vehicle is being repaired due to a covered loss. It doesn’t apply to mechanical issues or regular maintenance. You’ll need an active claim tied to an accident or similar covered event.
What’s Typically Covered
Coverage usually comes with both daily and total limits. A common example is $30 to $50 per day, capped at 30 to 45 days. That range fits most scenarios, but higher limits are available through some insurers. It’s a good idea to review your options so you know what you’re getting.
Why It Matters
If you don’t have rental coverage and you're not at fault in an accident, you’ll typically have to wait for the other driver's insurance company to process the claim before they’ll pay for a rental. That can take time. Having your own rental reimbursement coverage means you can get into a rental car right away without waiting on anyone else.
Is It Worth the Cost?
In a lot of cases, yes. Rental reimbursement is usually low-cost. For what you’d spend on a single day’s rental, you can often have coverage for an entire year. If you rely on your car daily, it’s a smart option to have in place before something happens.
Check With Your Agent
Not sure if you have this coverage or what your limits are? Your insurance agent can walk you through your policy and help you decide if rental reimbursement makes sense for your situation.
