Rental Car Reimbursement Coverage

• Rental car costs
• Public transportation fares
• Taxi or rideshare expenses
• Other qualifying temporary transportation

Not every policy covers the same transportation options. Some policies may only reimburse rental vehicle expenses, while others may allow additional forms of transportation.

The reason your vehicle is unavailable also matters. Rental reimbursement generally applies only when the damage or loss is covered by your policy. Examples may include:

• Collision damage when collision coverage applies
• Hail or storm damage when comprehensive coverage applies
• Theft or vandalism when comprehensive coverage applies

If the damage or loss itself isn’t covered, rental reimbursement generally won’t apply.

• Routine maintenance
• Mechanical breakdowns unrelated to a covered claim
• Vacation or leisure rental cars
• Fuel
• Security deposits
• Optional rental car insurance or damage waivers
• Rental vehicle upgrades
• Costs above the policy’s reimbursement limits
• Transportation expenses after the coverage period ends

Coverage and exclusions vary by insurer and policy. Review your policy before renting a vehicle or arranging other transportation.

• Use an eligible rental company or other approved transportation option
• Pay transportation expenses and submit receipts for reimbursement
• Have eligible rental charges billed directly to the insurer

Coverage continues according to the limits and conditions stated in your policy. Your insurer may limit how much it pays per day, the total amount it pays for one covered loss, or how long reimbursement remains available.

How Do Rental Car Reimbursement Limits Work?

Rental reimbursement coverage commonly includes a daily reimbursement limit and a maximum benefit for each covered loss.

The daily limit is the most your policy can pay toward eligible transportation expenses each day. The total limit is the maximum the policy can pay for the entire covered claim.

If your transportation expenses exceed either limit, you’re generally responsible for the remaining amount.

Review these limits when selecting coverage, so you know how much of your temporary transportation costs the policy may cover.

Does Rental Car Reimbursement Have a Deductible?

Rental reimbursement coverage often does not have its own deductible, although this can vary by policy.

You may still have to pay the deductible for the claim that caused you to need a rental car. For example, if your vehicle is being repaired after a covered collision, your collision deductible may apply to the repair claim.

Check your policy to see which deductibles apply.

• Daily reimbursement limit: The maximum amount available for eligible transportation expenses each day.
• Total reimbursement limit: The maximum amount available for a covered loss.
• Eligible transportation: The types of rental or alternative transportation the policy covers.
• Coverage period: How long reimbursement may remain available after a covered loss.
• Vehicle eligibility: Which insured vehicles have rental reimbursement coverage.
• Underlying coverage: Whether the covered loss qualifies under the collision, comprehensive, or other applicable coverage on the policy.

Compare these details when reviewing your options. A reimbursement limit that doesn’t match the transportation options available in your area may leave you with more out-of-pocket costs after a covered loss.

• Whether you have access to another vehicle
• Whether you need a vehicle for work, school, or other regular responsibilities
• Whether public transportation or rideshare services are practical where you live
• How much you could comfortably pay for temporary transportation

Someone with easy access to another vehicle may have less need for coverage. Someone who depends on one vehicle for regular transportation may find it more useful.

• Select a rental that costs more than your daily reimbursement limit
• Keep the rental beyond the covered period
• Reach the policy’s maximum reimbursement amount
• Choose an upgrade or optional service that isn’t covered

Check your limits before choosing a rental vehicle or another transportation option. Staying within the policy limits can help reduce unexpected expenses.