Rental reimbursement insurance

What is rental reimbursement insurance?


Rental Reimbursement is an optional coverage that helps pay your rental car costs or transportation expenses, such as public transportation fares, while your vehicle is being repaired. It does not apply if your vehicle needs routine maintenance work or if you need to rent a car on vacation. It usually is very affordable, costing only a few dollars per month.

Is rental reimbursement insurance necessary?

Rental car reimbursement is usually an optional policy, however it might be very useful if you are unable to drive due to a covered accident. Will you have access to another vehicle while your automobile is being repaired? Can you rely on family members to drive you to work or wherever you need to go? If not, rental reimbursement is a low-cost insurance option that can ensure you don't get stuck without a ride.

What is covered?


Depending on the provider, rental reimbursement coverage can be subject to a daily and per claim limit. For example, if you have $50 per day/$1,000 per claim rental reimbursement limits, an insurance company will pay up to $50 per day but no more than $1,000 per claim for your rental vehicle.

What is not covered?


Rental reimbursement does not cover the costs of gas, mileage or additional coverage, or any security deposit required by the rental company. If you have comprehensive and collision coverage on your existing insurance policy, it will usually transfer to your rental car while your vehicle's is being fixed. Generally, you can rent a car of a comparable size to your own vehicle but if the daily rate of your rental car is more than your daily limit allowed, you will have to pay the difference. Also, if your vehicle repairs are going to take a long time, you may want to rent a car with a lower daily rate so your rental reimbursement limit will last longer.


How to obtain a rental automobile as a result of an insurance claim?

Most insurance companies provide rental car reimbursement coverage, which pays for the cost of a rental car while your vehicle is being repaired as a result of a covered accident. You're usually insured for $30-$60 each day for up to a month.

Note: In the state of Virginia, the term Rental Reimbursement is known as "Transportation Expense."