What is rental car reimbursement coverage?
Rental car reimbursement coverage is an optional coverage that may cover the cost of a rental car if your vehicle is damaged in a covered accident and can't be driven. To add rental reimbursement coverage to your policy, you typically need to carry comprehensive and collision coverage as well. Rental reimbursement coverage will typically cover the cost of a rental car up to a certain dollar amount per day for a set number of days. Without rental car reimbursement coverage, you may be responsible for the cost of a rental car if your car cannot be driven after an accident.
How does rental car reimbursement coverage work?
Some insurers have relationships with rental car companies that make the reimbursement process seamless, while others may require you to submit receipts separately for reimbursement. With authorization, other insurers may allow you to bill your rental car directly to them, but it's less common.
Is there a deductible with rental reimbursement coverage?
In most cases, rental reimbursement coverage doesn't have an auto insurance deductible. However, the coverage only kicks in when your vehicle has been in a covered accident. If the damage is bad enough to warrant needing a rental car, then you'll likely be submitting an auto insurance claim under your auto collision insurance coverage or comprehensive car insurance coverage as well, both of which include a deductible.
How long will insurance pay for a rental car after an accident?
In most cases, you'll have a daily limit for rental costs, an overall rental cost limit, and a total number of days that are eligible for rental car reimbursement. Exact coverage limits will vary by insurer, so it's important to check for specific coverage information. With Progressive's rental car reimbursement coverage, daily limits are typically $40–60 and coverage lasts up to a total of 30 days.
Example:Your insurer offers a daily limit of $50 a day and a total limit of $1,500 per claim for rental car reimbursement coverage. This means your insurer will reimburse you up to $50 a day for your rental car up to the total coverage cap of $1,500.
If my car breaks down will insurance cover a rental?
No, rental car reimbursement coverage only applies if your vehicle needs repairs or replacement after a covered event, such as after a car accident or after a tree falls on your car. A mechanical breakdown doesn't qualify as a covered claim, so you would need to pay for a rental car out of pocket if you don't have mechanical breakdown insurance.
Who pays for a rental car after an accident?
If you carry rental car reimbursement coverage, you can file under your auto policy regardless of who caused the accident. If the other driver is at fault, their insurance may end up paying for your rental car. But it may make sense to use your rental reimbursement coverage if the claims process is likely to take a while. Once fault has been determined, you or your insurance company should be reimbursed by the at-fault driver's insurer.
If you get into an accident while driving your rental, the claims process will be a little different. Learn what to do if you get into an accident while driving your rental car.
Pro tip:
Your insurer will only cover the cost of a rental car up to your policy limits, so consider staying away from renting exotic or luxury cars. This coverage usually excludes fuel costs, security deposits, and any additional rental car insurance you may purchase from the rental company.
How much is rental reimbursement coverage?
The cost of rental car reimbursement coverage varies by insurer. If you're unsure if you already have rental reimbursement coverage, check the declarations page of your policy, or call your insurance company to verify your coverage.
Is rental reimbursement coverage worth it?
It depends on how comfortable you are with unexpected expenses. Renting a car for an extended period of time can get expensive quickly, so it may make sense to pay a few dollars a month to protect yourself against a large, unexpected expense after an accident. It can also provide faster reimbursement for a rental than an at-fault driver's insurance typically would.
Can I add rental car reimbursement after an accident?
No, you must have rental car reimbursement coverage on your policy prior to an accident if you want to take advantage of it. Fortunately, adding coverage is pretty straightforward with Progressive.
How to get rental car reimbursement coverage
We offer rental car coverage with a range of daily limits for you to choose from. Learn more about rental car reimbursement coverage from Progressive, and follow the steps below to add it your policy:
New Progressive customers
Get a quote for auto insurance and add rental car reimbursement coverage.
Current Progressive customers
Log in to your policy or call 1-866-749-7436 to add rental car reimbursement to your vehicle.
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