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What is Rental Reimbursement?

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Kevely Diaz

Answered On Sep 21, 2023

· Answered On Sep 21, 2023

Rental Reimbursement, also known as rental car coverage or transportation expense coverage, is an optional auto insurance coverage that helps pay for the cost of a rental vehicle. In contrast, your vehicle is being repaired after a covered insurance claim. It is not applicable if your car is in the shop for routine maintenance or if you need to rent a car on vacation.

This coverage comes into play when your vehicle is involved in an accident or suffers damage covered under your insurance policy, such as comprehensive coverage or collision coverage. If your vehicle needs to be repaired and is not drivable or is in the repair shop for a few days, rental reimbursement coverage would cover the cost of a rental car up to a certain limit defined in the policy.

The coverage is usually described in two numbers, for example, $30/$900. The first number, $30, represents the daily limit your insurer will pay for your rental car. The second number, $900, represents the maximum amount your insurer will pay for a rental car per claim.

It’s important to note that rental reimbursement coverage does not cover fuel costs, mileage charges, rental car insurance, or any deposit required by the rental company. It only covers the base rental cost.

Rental car reimbursement coverage can be a lifesaver if you don’t have another vehicle to use while yours is being repaired. However, it’s not automatically included in all auto insurance policies, so you’ll need to check with your insurance provider to see if it’s part of your coverage or if you need to add it.