Will My Insurance Company Cover the Costs of a Rental Car?

Car insurance offers coverage in a variety of ways. Such as, if you get into an accident and cause damage to someone else’s car or property. Furthermore, if the other party is injured in the accident it will cover their medical expenses. You can even get coverage for incidents such as a tree branch falling on your car or vandalism.

However, this all depends on the type of coverage you get. Insurers offer a multitude of protection, but it depends on how much coverage you want and how much you’re willing to pay.

If you get into an accident or your vehicle has to go into the shop, you may be wondering how you’re going to get around for the next couple weeks. You’re probably wondering whose going to pay for it as well.

In this article, we discuss when insurance companies reimburse you for rental car costs and when they don’t.

Does My Insurer Offer Coverage for Rental Cars?

There are only two instances when your car insurance company may cover your rental car costs. The first requirement is that the breakdown of the vehicle is a result of a covered loss. And second, you or the other driver must have the appropriate car insurance coverage.

If the other driver was at fault, their car insurance would be liable to cover the damages that you experience. Therefore, they would cover the costs of your rental car. Sometimes the process of getting rental reimbursement coverage from the at-fault driver’s insurer can take time. So, it may work in your favor to use your own rental reimbursement coverage and your insurer can send the bill to the at-fault driver’s insurance company.

You should also note that if you’re responsible for the accident, your insurance company might still pay for your rental. This is only applicable when your car insurance policy includes rental reimbursement coverage. For instance, you have to purchase comprehensive and collision coverage to get rental reimbursement coverage.

Collision coverage will pay to repair your vehicle no matter whose at-fault in the accident. Comprehensive coverage will provide repairs if your vehicle is damaged from something other than an accident.

Such things can include:

  • Natural disasters
  • Hitting an animal
  • Theft
  • Falling object damages (tree branches, rocks, etc.)
  • Vandalism

When Will My Insurer Not Cover the Costs?

·       Mechanical Breakdown

The rental reimbursement coverage will only pay for a covered loss. Therefore, if you need a rental car because of a mechanical breakdown, your insurance won’t cover the costs.

·       Vacation Rental

If you wish to travel out of town using a rental car, you will have to bear those expenses yourself.

·       Routine Maintenance

If your vehicle is in the shop for routine maintenance, your car insurance company won’t cover the cost of a rental car.


After discussing the limitations and benefits of rental reimbursement coverage, you’re aware of when insurance companies cover the costs and when they don’t. Typically, you’ll need to have both collision and comprehensive coverage in order to receive this benefit.



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