Does my auto insurance cover rental reimbursement if my car is being repaired?
Your auto insurance will cover rental reimbursement if your vehicle is being repaired after an accident, but only if you have rental reimbursement insurance. Rental reimbursement will usually cover a certain amount per day or a total amount.
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Licensed Insurance Agent
Eric Stauffer is an insurance agent and banker-turned-consumer advocate. His priority is educating individuals and families about the different types of insurance coverage. He is passionate about helping consumers find the best coverage for their budgets and personal needs. Eric is the CEO of C Street Media, a full-service marketing firm and the co-founder of ProperCents.com, a financial educat...
Eric Stauffer
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...
Chris Abrams
Updated December 2023
- Rental reimbursement will cover the cost of a rental car when your vehicle is repaired after an accident
- If your vehicle breaks down or is at the mechanic for general maintenance, rental reimbursement will not apply
- You may be able to get rental reimbursement through your car’s extended warranty if you have one
You rely on your vehicle to get you where you must go daily. However, when your car is at the mechanic, you must get from Point A to Point B. Considering this may lead you to wonder, “Does my auto insurance cover rental reimbursement if my car is being repaired?”
Keep reading to learn the answer to this important question, as well as some additional tips on the subject that may help you with understanding how auto insurance works.
Does auto insurance cover rental reimbursement if my car is being repaired?
The answer to this question is a very qualified “sometimes.” For example, your auto insurance will only cover a rental car if you have rental reimbursement coverage and if the repair is due to something covered by your comprehensive or collision policy.
For example, if you have rental reimbursement coverage and you discover that a windstorm blew a tree limb onto your vehicle, you should qualify for a rental car. Or if you are involved in a car accident and have filed a claim, your insurance will cover the rental car.
Read more: Does auto insurance cover rentals?
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Can I use rental reimbursement if my vehicle breaks down and needs repairs?
You cannot use your rental reimbursement coverage if your vehicle is in the shop due to a mechanical issue. For instance, if your alternator conks out, the heating system stops working, or you need a new transmission, your auto insurance policy will not cover your rental car, unless specified otherwise.
Therefore, it’s important to inquire, does auto insurance cover damage caused by a transmission failure? to understand your coverage options comprehensively.
The same applies to when your vehicle is in for general maintenance, like new brakes or an oil change. If your car does have a major mechanical failure, your extended warranty, if you have one, might cover the rental car, but your auto insurance will not.
Read more: Auto Care Guide: When to Get an Oil Change
Can I get rental reimbursement coverage when my car needs repairs?
Because rental reimbursement coverage is optional, you might not already have it as part of your auto policy. However, if you are interested in adding it, contact your insurance agent, if you have one, and inquire about how much it would cost.
Finding auto insurance quotes online is another option if you don’t have an agent or are considering changing companies. In most cases, adding rental reimbursement coverage is very affordable.
On the other hand, paying for a rental car out of pocket can be very expensive. If you are wondering, “How much is a rental car?” Travellers World Travellers World estimates that they cost about $50 to $80 a day, on average.
Read More: Does my auto insurance cover rental cars when I am traveling out of town?
How to Get a Rental Car When Your Vehicle is Damaged
If an accident or weather-related event damages your car, you should first file a claim. If you have rental reimbursement coverage, ask your agent, if you have one, about the amount you can spend per day or overall for the rental car.
It is good to have this information beforehand to choose a rental car within your budget. Next, you will select your rental car and pick it up.
In many cases, insurance companies partner with certain rental companies; this way, your auto insurance company will pay the rental car company directly. Your agent can also advise you on how to check the status of an auto insurance claim for the repairs that are being done on your vehicle.
Final Thoughts on Auto Insurance Covering Rental Reimbursement if Your Car Is Being Repaired
Being without your vehicle for any reason can be challenging. It is especially difficult when it results from an accident or other damage. Rental reimbursement coverage can help reduce stress when your vehicle is being repaired.
If you have one, speak with your agent to see about adding it to your policy and ensuring you have all of the desired types of auto insurance coverage. This way, if something does happen to your vehicle, you can still go about your daily routine as normal.
Frequently Asked Questions
What is rental reimbursement coverage?
Rental reimbursement coverage can help you pay for a rental car if your vehicle is in an auto shop due to a covered loss.
How long will insurance pay for a rental car?
This depends on your rental reimbursement coverage limits. For example, your coverage may be a daily limit, like $50 a day, or an overall maximum dollar amount, like $800.
How much does rental car reimbursement coverage cost?
While the costs vary, getting rental car reimbursement coverage is usually affordable. In addition, it is usually cheaper than renting a car on your own.
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