Does auto insurance provide a rental car?
Car insurance will not cover a rental after your car breaks down unless you carry rental reimbursement or mechanical breakdown insurance (MBI). If your vehicle is damaged in a collision and breaks down, your rental would be covered if you carry rental reimbursement. If your vehicle breaks down due to mechanical failure, your rental may be covered if you carry MBI with certain companies. Before your car breaks down, buy insurance to cover a rental from companies with MBI.
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Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Laura D. Adams
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Brad Larson
Updated February 2025
If my car breaks down, will insurance cover a rental? This is a frequently asked auto insurance question and, unfortunately, the answer is no. Insurance companies will not typically pay for a rental when your car breaks down.
However, with rental reimbursement coverage, the insurance company may pay you back for your rental costs if your breakdown results from a collision or accident. Otherwise, an extended warranty can usually apply when a car breaks down due to mechanical failure, but it won’t always cover a rental.
Read more: Does my auto insurance cover rental reimbursement if my car is being repaired?
Reading over your policy and understanding auto insurance coverages will help you determine when a rental is covered. Keep reading our guide to learn when insurance will pay for a rental car and who is responsible if a rental car breaks down.
If your car breaks down, and you need affordable insurance to cover a rental, enter your ZIP code above to find affordable auto insurance companies in your area.
- If your car breaks down, insurance will cover a rental if the claim is included as a “covered loss” in your policy
- If your car breaks down due to mechnical failure, your insurance will not cover a rental car
- Drivers can buy mechanical breakdown insurance or rental reimbursement to have insurance pay for a rental car after a breakdown
If my car breaks down, will insurance cover a rental?
Insurance companies will only cover a rental if your car breaks down due to a collision or accident. Even then, you need to carry a rental reimbursement add-on to have your company cover a rental.
If your vehicle breaks down due to mechanical failure, insurance will not cover a rental car.
Auto insurance exists to protect drivers from the unpredictable, not maintenance failures. Insurance companies view vehicular maintenance as the driver’s responsibility, and rental cars for mechanical breakdowns are not covered.
Read more: Can I get a rental car while my vehicle is being repaired?
When does auto insurance cover rental costs?
If you have rental reimbursement coverage, then insurance will pay for a rental car during repairs. However, be aware that this coverage does not apply to mechanical breakdowns.
For insurance companies to cover any breakdown, it has to be included as part of a “covered loss” in your policy. Covered losses typically include structural damages sustained during a collision. So, if your breakdown is a direct result of a covered loss, then insurance will cover your rental costs.
Your insurance may also cover rental costs if your vehicle is declared a total loss after an accident. How long will insurance pay for a rental car after total loss? That depends on your policy and rental reimbursement coverage. On average, insurance companies can pay up to 30 days.
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If my car breaks down, will insurance cover it?
What your insurance policy covers depends on the insurance company you choose and the kind of coverages you’re paying for. Typically, auto insurance does not cover anything when a vehicle breaks down due to mechanical issues.
That being said, a few insurance companies provide mechanical breakdown insurance (MBI). This type of additional coverage applies to major failures, including engine and battery failures, that can lead to breakdowns.
MBI will not cover routine oil changes or tire rotations, though, so many drivers use this coverage for older vehicles with rare parts that cost more to repair.
Is mechanical breakdown insurance worth it? MBI can cost an additional $30-$100 per month and comes with higher deductibles, sometimes reaching $500 or more, which can make the policy superfluous, especially if you have an extended warranty.
Which insurance companies will cover me when my car breaks down?
No insurance company offers policies that pay for routine maintenance or mechanical breakdowns. However, a few provide MBI coverage to lower rates and repair costs for older vehicles after a breakdown.
The most popular auto insurance companies for mechanical breakdown insurance are:
- AAA
- Allstate
- American Family
- Geico
- Mercury
Each company offers different features with their policies, as well as deductibles. While some offer free towing or rental cars, others provide lower deductibles or roadside assistance. Let’s take a closer look at each company to see which offers the best coverage:
Read more:
- What is American Family’s policy on rental car coverage during the claims process?
- Does my auto insurance cover towing and roadside assistance?
AAA Mechanical Breakdown Insurance
AAA Mechanical Breakdown Insurance provides roadside assistance and financial relief for costly maintenance repairs, but it does not cover rental cars after a breakdown.
There are no deductibles at AAA-owned repair shops. At AAA-approved mechanics, the deductible is $50.
However, you must be a AAA member to buy AAA auto insurance. AAA membership packages range from $59-$119 per year.
Read more: Does AAA cover rental cars?
Allstate Extended Care
Allstate Extended Care also comes with a cheap $50 deductible and covers the powertrain, core systems, and technology in your vehicle. It also gives drivers the luxury of choosing their own mechanic.
Allstate will also cover a rental car after a breakdown for up to $40 per day for 7 days and up to $100,000 of towing costs after a breakdown. However, Extended Care is limited and only applies for 7 years or 100,000 miles.
American Family ForeverCar
An American Family ForeverCar subscription will cover a rental car after a breakdown for up to $40 per day. Coverage also applies to up to 225,000 miles and includes a wide array of mechanical and powertrain repairs.
Drivers can choose their own mechanic and their own level of coverage, with additional platinum and powertrain coverage levels for extra protection.
Geico Mechanical Breakdown Insurance
Does Geico cover a rental car if my car breaks down? No. Geico MBI policies only cover repairs to mechanical parts of your car, but it will cover all those mechanical parts. Unfortunately, Geico has the highest MBI deductible on this list at $250.
You will also need rental reimbursement for Geico rental car insurance to apply during an MBI claim.
Mercury Mechanical Protection
Mercury Mechanical Protection offers some of the most extensive breakdown coverage, including rental coverage, roadside assistance, and trip interruption coverage. Drivers can also choose their own mechanic no matter what state they are in.
How much will it cost for insurance to cover a rental if my car breaks down?
If your car breaks down, and you want insurance to cover a rental car, you’ll need to pay extra for rental reimbursement coverage, MBI, or both.
The average mechanical breakdown insurance rates average around $100 per year. On the other hand, rental reimbursement averages around $60 per year.
The difference is only a couple dollars per month, which could end up saving you in repair costs if you drive an older vehicle. To decide which type of insurance coverage fits your budget, shop around with auto insurance quotes from multiple companies to get the best rates.
Out of the companies above, Allstate and American Family offer the most affordable rental car insurance after your car breaks down. Geico rental car rates will likely be higher since drivers must carry both rental reimbursement and mechanical breakdown insurance for coverage. However, if you have other Geico insurance, rental rates might be cheaper with a bundling discount.
Before your car breaks down, buy insurance to cover a rental. Enter your ZIP code below to find affordable auto insurance quotes from companies in your area.
Frequently Asked Questions
Does auto insurance cover rentals if my car breaks down?
No, auto insurance typically does not cover a rental car if your car breaks down, unless you have rental reimbursement or mechanical breakdown insurance (MBI) included in your policy. Rental reimbursement coverage can provide reimbursement for a rental car if your breakdown results from a collision or accident. MBI, on the other hand, covers mechanical failures that lead to breakdowns. It’s important to review your policy to understand the specific coverage you have.
When does auto insurance cover rental costs?
Auto insurance may cover rental costs if you have rental reimbursement coverage and the breakdown is a covered loss in your policy. Covered losses usually include damages from collisions or accidents. However, rental reimbursement coverage does not apply to mechanical breakdowns. It’s important to check your policy to understand the specific terms and conditions.
Will insurance cover the cost of repairs if my car breaks down?
Auto insurance typically does not cover repairs for mechanical breakdowns. Insurance is designed to protect against unforeseen events and accidents, not regular maintenance or mechanical failures. However, some insurance companies offer mechanical breakdown insurance (MBI) as an additional coverage option. MBI covers major failures like engine or battery failures that can lead to breakdowns.
How much does it cost for insurance to cover a rental if my car breaks down?
The cost of insurance coverage for a rental car after your car breaks down will vary depending on the insurance company and the specific coverage options you choose. On average, mechanical breakdown insurance (MBI) costs around $100 per year, while rental reimbursement coverage averages around $60 per year. It’s recommended to compare quotes from multiple companies to find the best rates and coverage options for your needs.
Can I use my personal car insurance to cover a rental car if mine breaks down?
Your personal car insurance policy may provide coverage for a rental car if your own vehicle breaks down, but this coverage is typically limited to situations where the breakdown is due to a covered loss and you have rental reimbursement coverage. It’s important to review your policy or contact your insurance company for clarification.
Will my insurance cover a rental car if my car breaks down while I’m on a road trip?
Whether your insurance will cover a rental car during a road trip depends on the specific circumstances and your policy. If your breakdown is due to a covered loss and you have rental reimbursement coverage, there is a higher chance of being eligible for rental car coverage. However, it’s important to review your policy or contact your insurance company to confirm the details.
Does insurance give you a rental car if your car breaks down?
No. Your insurance company will not automatically give you a rental car when your car breaks down, or even in an accident. With most auto insurance policies, rental costs are reimbursed to a driver after their claim is filed.
If you need a rental car for any reason, those costs will be paid out of pocket and paid back to you once your insurance company finishes processing your claim.
Who is responsible if a rental car breaks down?
If a rental car breaks down due to mechanical failure, then the rental company is usually responsible. However, if a mechanical breakdown is caused by the driver’s negligence, the driver will be responsible for repair costs and damages.
When you’re involved in an accident while driving a rental, you will need to ensure your auto insurance policy covers rentals. If not, then purchase additional liability coverage from the rental company. You can also check to see if the credit card you use to rent the vehicle offers liability coverage.
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