Can I get a rental car while my vehicle is being repaired?

If you’re in an accident, you may need a rental car while your car is being repaired, and in this scenario, you might be thinking “Does my auto insurance cover rental reimbursement if my car is being repaired?” In this case, insurance may cover the cost of the rental.  In this article, we’ll explain when insurance covers a rental.

We’ll also explain rental reimbursement coverage and when insurance doesn’t apply, what different types of auto insurance coverage there are, and how these cover your rental vehicle.  Finally, we’ll answer some frequently asked questions about auto insurance and rental cars.

Your Insurance Policy May Pay for a Rental While Your Car is Being Repaired

If your car needs repairs after a covered loss, your insurance may cover a rental car. Covered losses are incidents or claim your policy covers. Check your policy or call your insurer to learn what it covers.

Usually, however, as long as your policy includes rental reimbursement coverage, comprehensive of collision insurance pays for a rental car if yours needs repairs because of:

• collision with another car
• Hail or wind damage.
• Animal damage, like a deer hitting your car.
• Objects falling.
• Damage from fire or smoke.
• Theft
• Vandalism

Next, we’ll explain when rental reimbursement coverage applies in more detail.

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Rental Reimbursement Coverage Explained

Rental reimbursement coverage is sometimes called substitute transportation or car rental coverage. It may pay for transportation if your car needs repairs because of an insured loss.

Imagine you hit an animal on the road. Comprehensive insurance covers vehicle repairs. Rental reimbursement would cover a rental car during the repair process.

This coverage is optional but affordable for car insurance.

Limits apply to rental reimbursement. That means your insurer’s daily payout for a covered claim is capped. You usually have a limit for each day and a maximum number of days or an overall cap.

For example, it might be $25 daily for up to 30 days, or you may have a limit of no more than  $1,000. Your insurer will pay $25 a day for a maximum of 30 days or until you reach your $1000 cap.

You will be responsible for paying if your rental costs exceed your rental reimbursement limit or if you use it for more days than allowed. Consult your policy for information about rental reimbursement limits, and ask your insurer if you can increase your coverage.

When Rental Car Reimbursement Insurance Doesn’t Cover a Rental Car

Auto insurance doesn’t cover routine maintenance or mechanical failures.

The cost of a rental car won’t be covered if your car is in the shop for:

• New tires
• Failed engine
• Brake failure
• Leaks in fluid

Regular maintenance and repairs may be covered if your car is still under warranty. Warranties usually last a specific amount of time or miles.

Car Insurance That Covers Your Vehicle

Affordable liability auto insurance coverage helps with damage caused to other people and their vehicles if there’s an accident. The minimum liability coverage is required in all states except two, but the actual amount varies. In addition, there are types of coverage that pay for vehicle damage.

Affordable comprehensive auto insurance coverage protects against damage caused by non-driving perils like theft, vandalism, animals, fire, and extreme weather.

The difference between is that collision coverage pays for physical damage to your vehicle after a collision, no matter who’s at fault. If both types of damage keep your car in the shop, you receive a rental reimbursement.

That’s what you need to know about when insurance pays for a rental car.  If you get into an accident, contact your insurance company and find out about renting a car while your vehicle is being repaired.

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