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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Car Insurance Agent Daniel Walker

UPDATED: Jul 19, 2021

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The Short of It

  • Rental reimbursement coverage will pay for a rental car in the event your vehicle is damaged under a covered claim
  • Rental car reimbursement generally has per day and total payout limits
  • Rental car reimbursement coverage costs an average of less than $15 per month

Rental car reimbursement insurance covers a rental car under certain circumstances. If your car is damaged, your auto insurance may pay or reimburse you if you need a rental car or take transit while your car is being repaired.

Before you buy auto insurance with rental car reimbursement, shop around to find the best deal. Most companies offer this auto insurance coverage option so you won’t have any problems comparison shopping.

Enter your ZIP code now to compare auto insurance quotes with rental car reimbursement from multiple companies near you.

What is rental car reimbursement?

Rental car reimbursement is just like it sounds. It’s additional coverage you can add to your auto insurance that will pay for either a rental car or for transportation services like a cab.

However, coverage won’t kick in if you are having maintenance done to your car or if you just want to rent a car for a trip. It also won’t cover fees or gas for the rental vehicle.

Most auto insurance companies offer rental car reimbursement so it’s fairly easy to find and add to your policy.

According to the Insurance Information Institute, most cars are in the repair shop for an average of two weeks. Paying for a rental car yourself can be expensive. Adding rental reimbursement coverage can give you added peace of mind for very little cost.

There are limits as to what your insurance company will pay. For example, your limits may be up to $50 a day for 30 days. This will vary by company and the coverage you choose. The good news is that there is not a separate deductible that has to be paid for this coverage.

Being able to access this coverage will also depend on exactly what other coverages you have in place. Your claim must be covered under your auto insurance policy before your rental insurance kicks in.

If you hit a tree, you would need to have collision coverage to pay for damages before you can use your rental reimbursement while your car is being repaired. The same is also true if you have a comprehensive claim.

Does my insurance cover rental cars if I didn’t cause the accident?

If you are not at fault for the accident, the car insurance from the other driver would pay for your rental or transportation needs. However, there will be limits to that as well.

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Is rental car reimbursement worth it?

Whether or not this is a good fit for you will depend on your specific situation. Although auto insurance with rental car reimbursement is usually pretty cheap, the extra coverage costs will still add up over time. If you have access to another car to drive or if you don’t drive all that much, you might consider skipping rental car reimbursement.

Shop around to find the most affordable auto insurance with rental car reimbursement. Compare quotes to find the cheapest coverage that fits your needs.

Enter your ZIP code to compare auto insurance rates with rental car reimbursement from companies in your area.