Does Car Insurance Cover Rental Cars While Your Car Is Being Repaired?

Your car insurance may cover a rental car while yours is in the shop if your policy includes rental reimbursement coverage and the repair is due to a covered peril, like an accident or theft.

If you weren't at fault in a collision, the other driver's liability coverage will typically pay for your rental car. If you only have the state-required minimum liability coverage, it won't cover a rental car. You'll also need to pay out of pocket if your car needs repairs unrelated to a covered peril, such as routine maintenance or mechanical breakdowns.

• How Rental Reimbursement Works
• How to File a Claim for Rental Reimbursement
• When Car Insurance Won’t Cover a Rental Car
• Car Insurance Companies That Offer Rental Reimbursement Coverage
• FAQ: Rental Car Insurance

Rental reimbursement is an optional car insurance coverage, often available for a small additional fee, that helps pay for a rental car when yours is being repaired after a covered incident (e.g., accident or theft). It typically kicks in if you have collision and comprehensive coverage on your policy and need a temporary replacement vehicle due to a covered claim.

Rental reimbursement doesn't automatically kick in just because you paid for a rental car. This coverage has specific conditions and limits:

Rental car reimbursement won't work retroactively. This means if you get into an accident and then decide to add rental reimbursement to your policy, your insurance company won't cover the rental car expenses. To be covered, you need to have the coverage in place before the accident happens.

Keep all receipts and documents related to the rental and repairs. This will help ensure a smooth claims process and timely reimbursement.

While rental reimbursement coverage can be a lifesaver, it's not a free pass for every rental car situation. There are a few scenarios where your car insurance might not cover the cost:

Rental reimbursement is not a standard part of car insurance, but most major insurers do offer the optional coverage. While your collision or comp insurance will tow your car and pay for repairs, no other coverage will help pay for a rental to keep you mobile.

Read below for answers to some frequently asked questions about car insurance and rental cars.