Is my rental car covered if I’m in an accident?

So, you have a bit of a situation – you’ve been in a car accident. It wasn’t too bad, but your car needs repairs, and that could take a while. You’ll need to leave it at the shop for…well, who knows how long? But the problem is that you need to get to and from work, take the kids to soccer practice, go to the grocery store because food, drop off some clothes at the dry cleaners… In short, you need a rental car. But rental cars are expensive, so your question now is – will my rental car be covered by insurance? We’ll explain what you need to know.

Will my rental car be covered while my car is in the shop for repairs?

It can be covered, yes, but you need to have the right coverage. There’s a coverage called rental reimbursement, and it can pay for your rental car while your vehicle is being repaired if it’s in the shop. Auto insurance will not automatically just cover your rental vehicle while your car is in the shop – you need to have rental reimbursement coverage. If you don’t have this coverage, the bill for the rental car will land on your shoulders.

Following an accident, a car is typically in the shop for 14 days (that’s the average.) And that’s a long time – that bill will add up quickly. So, if you want to be covered for the expense of a rental car, getting rental reimbursement is something to consider.


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How long does insurance cover the rental car?

Well, you can’t just ride around in your rental car forever. (Even if it’s really pretty and shiny.)

There will most likely be a daily limit and a per-accident limit on your rental reimbursement coverage. For example, you might have a limit of $30 per day and $900 per accident. So, you have to be mindful of that limit when you’re renting your car and working everything out. Be sure to read your policy carefully or talk to your agent so that you understand the terms of your rental reimbursement coverage, how long you can have a rental car, and the limit on the coverage. If you have any questions, don’t be afraid to ask. It’s better to ask the question than to make assumptions.

Pro tip: If you need to get a rental, see if your insurance company recommends or works with a particular rental car company or agency.

How much does it cost?

The coverage is usually not too expensive as an add-on to your insurance policy. Yes, technically it might be cheaper to bypass the coverage if you’re just going for the lowest auto insurance rate, but if you need your car and couldn’t get by easily without a vehicle, it’s something to consider.

If you want to get quotes for car insurance and see how much rental reimbursement would cost, we would be happy to help. We can help you shop for great coverage at a great rate, and we’ll help the coverage you need to protect yourself financially.

How you can save money on car insurance.

You might be a bit concerned about that extra cost on your auto insurance. Here are some tips to help you save money on your car insurance premium so that you can offset the cost of the rental reimbursement on your policy:

  • Drive safe and keep a good driving record – this makes you less of a risk to insure, which can help keep your rates down. Accidents and speeding tickets can cause your insurance rates to go up.
  • Raise your deductible if you’re financially comfortable doing so.
  • Ask about discounts – for example, low mileage, Good Student, bundling, and so on.
  • Consider bundling your home and auto insurance.
  • Drive a safe car.
  • Boost your credit score.
  • Get multiple quotes for car insurance.

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So, that’s the scoop about rental reimbursement coverage. You can consider adding it to your auto insurance policy – it most likely won’t add too much to your car insurance premium. And that way, if you’re ever in an accident and you need a rental car, you can get some help from your insurance to cover the expenses. But, of course, you need to make sure you have the right coverage. Ask your agent about rental reimbursement coverage today.

If you need car insurance quotes, you can fill out our online quote form or give us a call today. One of our agents can assist you with getting multiple quotes for your car insurance. We’ll help you get the right coverage to protect yourself when you get behind the wheel.