What is rental reimbursement coverage?

If you need to rent a vehicle following an accident, your policy’s rental reimbursement coverage — also known as rental car insurance coverage (or rental car liability coverage) — pays for your daily rental charges, up to a specified dollar amount that you select.

Keep in mind that rental reimbursement coverage only kicks in if you experience a “covered” loss — one covered under your policy. So if you’re going on vacation and need a rental car or your vehicle is just undergoing regular maintenance, you can’t count on your rental reimbursement coverage.

Typically, there is no deductible for rental reimbursement coverage. However, for damages sustained in a covered event that required you to use your rental reimbursement coverage, you will still need to pay the deductible for the coverage used (like comprehensive or collision coverage).

Should I get car rental insurance?

Coverage is optional, so you’ll only have it if you specifically add it to your auto insurance policy. Because of that, you’ll want to think about a few things before deciding if the coverage is right for you. Do you have another vehicle you can use after an accident (which means you won't have to rent one)? If you drive a lot or have a long commute, the chances of you getting into an accident and needing a rental vehicle are a lot higher. Be sure to think through your situation carefully.

Learn about the difference between rental car insurance and rental car coverage.