Insurance companies generally provide reimbursements for a car rental if your car is damaged in an accident. Liability car insurance covers damage to other people and their vehicles when you cause an accident. ), or reduce the excess (the amount you’ll pay if anything goes wrong). Mechanical breakdowns and other regular maintenance issues are not covered by auto insurance, so you should expect to pay for mechanical repairs like regular wear and tear and corrosion on your own. For example, your coverage may only apply for up to 30 days. How much does long-term disability insurance cost? If your car is unsafe to drive, coverage begins immediately. Keep in mind that if your rental car coverage is only for a certain period of time, you’ll need to pay out of pocket should you … If your car is in the shop for damage that was covered by your comp and collision coverage, then your rental reimbursement will kick in and pay for the cost of a rental car. Many insured drivers are surprised to find out that their auto insurance does not automatically cover the cost of their rental because they've overlooked the policy option known as rental reimbursement. Her words can also be found on PayScale, Fairygodboss, and The Muse. Depending on the coverage in your policy, your auto insurance may be able to cover the costs of a replacement rental car if your car breaks down, as long as the damage was caused by a covered loss, Rental reimbursement coverage can help you pay for temporary transportation expenses, including a replacement rental car, but your coverage may be subject to limits, Other coverage options, like comprehensive and collision insurance, can offer financial protection for the body of your vehicle. Rental reimbursement coverage, also called substitute transportation coverage or car rental expense coverage , can help you pay for transportation expenses if your car is in an auto shop due to a covered loss. Here's what you need to know about insurance for your rental. These are likely to cover parts of the car beyond the bodywork (windows, tyres, engine, etc. When will insurance NOT pay for a rental car? If your car breaks down and the damage was caused by a covered loss, your auto insurance may be able to pay for temporary transportation expenses with certain supplemental coverage options, like rental reimbursement coverage. With AAA auto insurance, you are typically covered for rental cars up to your same coverage limits in the United States. Even if your accident is another driver's fault, the details of a claim may take time and you may have to wait get his or her insurance company to agree to pay for your rental car. In all but two states, drivers are required to have the minimum amount of liability insurance, but the actual amount will vary by state. On average, a car is in the repair shop for two weeks after an accident and renting a replacement vehicle for that amount of time can be costly. Your personal auto insurance will most likely offer some sort of coverage for a rental car if you have liability, collision, and comprehensive insurance. The first step is to check your auto insurance policy, or contact your provider to see what type of coverage for rental cars may already be included in your personal auto insurance policy. Protect your rental directly with the rental company . For example, when it comes to liability insurance, if you cause an accident while driving the rental car, your liability insurance would pay up to your policy limits for the damages done to other … That means your insurer will pay up to $25 per day for no more than 30 days or until your $1,000 limit has been reached. If you do not have a current auto insurance policy, you will be required to purchase this coverage before you can rent a car. If you have purchased travel insurance, car rental collision coverage may be included. Your vehicle must be in the shop due to a covered loss. Your rental reimbursement coverage may be subject to limits, meaning the amount your insurer will pay per day for a covered claim. Warranties typically last up to a certain number of miles or period of time, but are completely separate from your car insurance. But rental reimbursement generally does not cover rental vehicles for vacation purposes, and it won’t pay for a rental car during routine maintenance work on your vehicle. Bundlers have saved 27% by switching with Policygenius. Ask your insurance company how they handle rental reimbursement; don’t count on the insurance … Here's what you need to know about insurance for your rental. How long should my life insurance coverage last? Rental reimbursement coverage will cover the cost of a replacement rental car while yours is being repaired. You may have rental car insurance through your credit card company if you use the card to pay for the rental. Comprehensive and collision insurance are both optional, but will cover repairs to the body of your vehicle and are often paired together. If you have collision coverage and comprehensive coverage, then your policy may include roadside assistance; but if it does not, it’s fairly easy and affordable to add. To find out what perils your policy does and does not cover, look at a copy of your policy or contact your insurance carrier. On average, a car is in the repair shop for two weeks after an accident and renting a replacement vehicle for that amount of time can be costly. Your insurance company will then go after the other driver’s insurance company for reimbursement of the money they paid for your rental car. However, mechanical breakdowns and routine maintenance are generally not covered by auto insurance, and you should expect to assume the costs for regular wear and tear or corrosion. In the case of an accident in a rental car, you pick up the deductible on your auto insurance policy and then your insurance covers the remainder, up to your policy’s limit. #3. Unfortunately, many consumers do not even think about car rental insurance until they get to the counter, which can result in costly mistakes—either wasting money by purchasing unnecessary coverage or having dangerous gaps in coverage. If you carry comprehensive and liability coverage on your personal car, coverage typically will extend to your rental car within the United States. That means you pay upfront for the rental while waiting for the repairs on your car. If my car breaks down, will insurance cover the costs of a replacement rental car. Review your policy to see what your limits are, and speak to your insurer if you’d like to raise your coverage limits. Yes, your other insurance policies typically include some rental car coverage by default. The other driver’s insurance company is still doing an investigation and refuses to pay anything towards my claim, not even my deductible. How much does homeowners insurance insurance cost? Regular maintenance and repairs may be paid-for if your car is still under warranty which is a guarantee made by your car’s manufacturer to cover the cost of certain mechanical repairs should you need them. If your rental car costs more than your rental reimbursement limit, or if you need to use it longer than the maximum days you’re allotted, you’d have to pay out of pocket for the costs that exceed your limits. And as the name suggests, collision insurance covers physical damage to your vehicle when it collides with another car or object, no matter who was at fault. But there are types of coverage that pay for damage to your own vehicle. If you have a personal auto insurance policy, you will already have some protection that overlaps with the insurance the car rental company offers. How life insurance works with wills and trusts. If you don’t have any of these policies or they don’t include enough … Rental reimbursement coverage, also called substitute transportation coverage or car rental expense coverage, can help you pay for transportation expenses if your car is in an auto shop due to a covered loss. When will insurance pay for a rental car? Many insured drivers are surprised to find out that their auto insurance does not automatically cover the cost of their rental because they've overlooked the policy option known as rental reimbursement. Best life insurance for people with depression. You’re typically given a daily limit and a maximum number of days it can be used, or an overall limit. Also, check to see if you purchased GAP coverage on the car that was totaled. If your car needs to be in the shop for a while after an accident, you may need to rent a car. Does My Current Car Insurance Cover My Rental Car? But there are a number of other ways to save money on auto insurance and, if your car is in the shop for an extended period, rental reimbursement can be a bargain. However, like with most things in the insurance industry, it all depends on what coverage options you chose when purchasing your automobile insurance policy.. A covered loss is a claim or incident that is financially protected by coverage that is included in your policy. © Copyright 2021, Insurance Information Institute, Inc. This … In general, the coverage you have from your primary auto insurance will cover a rental vehicle. Many popular credit card brands — including Visa, Mastercard and American Express — offer rental car insurance on some of their cards. Please sign in to access member exclusive content. The best way to know for sure if your auto insurance coverage includes rentals is to speak with your insurance agent. You need to stop renting your automobile once the auto shop repairs your damaged car. We consider replacement cost to be the actual cash value of the rental car, minus its reasonable salvage value. Liability insurance is the minimum insurance required by most states for car insurance, so most drivers will have this insurance and it will extend to your rental car. What is an irrevocable trust and how does it work? As with the previous one, if you have it on your own personal car, you may not be required to pay for it for the rental… All Rights Reserved. Home & Auto Insurance Comparison Made Easy. This type of insurance won't reduce the excess nor your deposit you'll pay when you pick up the car (although it does insure both). Properly insuring a rental car can be confusing, frustrating and downright daunting. If you’re looking at the possibility of renting a car for short term use, you might be wondering whether you’ll need to purchase additional insurance – or whether you can use your own insurance for a rental car. For example, your coverage may provide up to $25 per day for a maximum of 30 days or an overall payout of $1,000. Rental reimbursement will only cover the cost of a rental car if your car needs repairs after a covered loss. A mechanical issue not caused by a covered peril, then, wouldn’t qualify you for rental reimbursement coverage. Comp coverage protects your vehicle from damage inflicted by non-driving perils such as theft, vandalism, and extreme weather conditions. When you pick up your rental car, the counter staff might offer you extra types of cover or insurance. Call the 1-800 number on the back of your credit card to determine if this is a service they provide. In order for your primary automotive insurance to cover your rental car, you’ll need three types of coverage: liability, collision, and comprehensive. Most auto insurance policies offer rental reimbursement coverage for a nominal extra charge, but sometimes auto insurance shoppers skip adding it to their policies. Does my car insurance cover rental cars? A: The short answer to this question is yes, your car insurance does cover you when you rent a car. Say you collide with an animal on the road. This can include public transportation fare or a replacement rental vehicle while yours undergoes repairs. Auto Insurance Won’t Cover Loss of Use Charges If you damage a rental car and it’s in the repair shop, your car rental company may charge a daily “loss of use” fee. Is long-term disability insurance worth it? If you have rental reimbursement coverage , your auto insurance will pay for a replacement rental car if your own breaks down or is in the shop due to a covered loss . That means that, if your car breaks down because of mechanical issues, even if you have rental car reimbursement coverage it will not cover the cost of a replacement rental car. Anything over that limit might be protected by your credit card but, again, it’s best to … Rental reimbursement coverage can be used while your vehicle is being repaired after an accident or another covered loss, not for routine maintenance or leisure. Credit Card or Travel Insurance. Once the shop repairs your vehicle, the insurance company is no longer responsible for rental fees. If that time limit expires, I would suggest contacting your own insurance carrier to see if you have rental car coverage. Does Farm Bureau Auto Insurance Cover Rental Cars – Liability Insurance This is coverage related to possible damages inflicted on someone else during an accident with the rented vehicle. Depending on your carrier, roadside assistance, another additional coverage option, can cover the costs of towing your car to an auto repair shop or delivering fuel or a new battery in emergency situations. When you are driving a rental car and you are in an accident, liability insurance can cover the costs of repairs to the car and property, and medical bills for injuries to the other cars’ occupants, with collision coverage paying for the cost of damages to the rental car. In my jurisdiction (British Columbia, Canada), your typical automobile insurance policy would not provide any coverage when you rent a car. In states that require it, you usually only have to purchase a minimum amount of certain components of car insurance, such as liability insurance (which is coverage for injuries to other people and their property by your vehicle). It’s important to note that the Rental Car Damage Protector gives you primary coverage. Loss of use means the money the rental car company is losing while the car is in the shop. Rental reimbursement coverage can not be used for routine maintenance or a vacation rental car. Coverage includes collision coverage, liability insurance (up to minimum mandatory per state), uninsured motorist coverage, medical coverage, and rental car reimbursement (if your own car is out of service). Comprehensive coverage and collision coverage are additional insurance options you can add to your policy to protect the vehicle itself. She's been writing about insurance, finance and financial planning since 2018, and loves helping readers get the knowledge they need to make financial decisions with confidence. Rental reimbursement coverage is available for a nominal extra amount with almost every auto insurance policy, although the option is often bypassed by those who are shopping for the lowest cost premium. If you book your car directly with the rental company online, you can buy cover for it at the same time. When you can use rental reimbursement coverage depends on the other types of coverage you have on your car insurance policy. With comprehensive coverage, the costs of repairs to your vehicle would be covered, and because that counts as a covered loss, rental reimbursement would supplement that coverage by helping you pay for a rental car while you wait for yours to be fixed. Personal accident insurance helps pay your and your passengers' medical bills, if you're injured in a rental car accident. If your car is safe to drive, rental coverage begins the day you leave your car at the body shop and ends the day your car is repaired, or after 30 days, whichever comes sooner ($25x30=$750). Rental car reimbursement coverage helps you pay for a rental car, or for alternate transportation — such as bus fare or cab rides — but only if you need it because of a covered loss. Rental car insurance coverages you may already have on your auto or home policy: Liability: Since nearly every state requires liability insurance, your personal auto policy already protects you against any damage or injury you cause while driving a rental car, up to the limits of your policy. Next steps: Renting a car? Stop renting when you receive an insurance … So, if your car is at the body shop after an accident, a rental car is covered up to your limit. With your own replacement rental coverage, there's no waiting. Rental car insurance on a credit card may help cover your costs if your rental is in an accident or stolen, but coverage is typically limited. He or she can explain how your coverage translates to a rental vehicle. Typically the liability insurance carrier will offer a rental car for a "reasonable time." Car rental companies offer additional insurance that covers the car in the case of an accident. The III says if you have health insurance, medical payments coverage or personal injury protection on your car insurance policy, you may already have … This can include public transportation fare or a replacement rental vehicle while yours undergoes repairs. At the soonest moment, get your fixed vehicle and return your rental car. Your rental reimbursement insurance coverage does not cover this added cost. If you rely on your car, rental reimbursement is an inexpensive and invaluable option that you'll want to consider adding to your auto insurance policy. And roadside assistance, which delivers emergency support if you’re stranded on the side of the road, can also help you keep your vehicle in tip-top shape. In short, yes. Stephanie Nieves is an insurance editor at Policygenius in New York City, specializing in auto and home insurance. I have maxed out my policy limits for a rental car through my car insurance policy insurance company and am facing an additional $300 in rental car fees in addition to my $1,000 deductible. Rental reimbursement coverage is a relatively inexpensive add-on to your car insurance policy, and including it generally won’t raise your premiums significantly. a number of other ways to save money on auto insurance. Car insurance that covers your vehicle itself. Fortunately, if your car insurance policy includes collision and comprehensive coverage on your regular vehicle, this protection typically transfers to the rental car you are driving while your vehicle is being repaired.