What is Rental Reimbursement Coverage?

2. What are the benefits of obtaining rental reimbursement coverage?

What is Rental Reimbursement Coverage?

Rental reimbursement coverage is an optional type of car insurance that pays rental car costs you incur while your car is being repaired due to an insured event. If you don’t already have rental reimbursement coverage, you should consider adding it to your car insurance policy.

Types of Events Covered

Rental reimbursement coverage typically covers costs for a rental car for the following types of insured events:

  • Collision with another vehicle or object
  • Theft or vandalism of your vehicle
  • Damage from an Act of Nature, such as a storm or hail

Amount Covered

The amount you are eligible to receive for rental car costs will depend on your policy limits, although most policies cover up to $30,00 in rental expenses.

Paid Upfront or After Repair

Rental reimbursement coverage may pay for the rental car either before the repair is completed on your vehicle or once the repair is completed.

Age Requirements

Most rental car companies will not give a rental car to drivers under the age of 25, so you should check with your insurance company to ensure they will cover rental car expenses if you are under 25.


The main benefit of having rental reimbursement coverage is that it takes some of the financial burden off your shoulders if your car needs to be repaired. Without rental reimbursement coverage, you would need to front the costs for a rental car until the repair is completed which may be costly. Having rental reimbursement coverage helps to ensure you will have a safe and reliable vehicle to use until your car is repaired.

In Conclusion

If you are in the market for car insurance, or you are looking to add additional coverage to your existing policy, you should consider adding rental reimbursement coverage. Rental reimbursement coverage can provide you with peace of mind should your car need to be repaired due to an insured event.

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