Does auto insurance cover a rental during car repairs?

Auto insurance covers a rental car during repairs if you have rental reimbursement coverage. Check your car insurance policy to see what's covered, and consider upgrading your personal auto insurance to cover rental cars during repairs.

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Ty Stewart

Licensed Insurance Agent

Ty Stewart is the founder and CEO of SimpleLifeInsure.com. He started researching and studying about insurance when he got his first policy for his own family. He has been featured as an insurance expert speaker at agent conventions and in top publications.  As an independent licensed insurance agent, he has helped clients nationwide to secure affordable coverage while making the process simpl...

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Ty Stewart
Justin Wright

Licensed Insurance Agent

Justin Wright has been a licensed insurance broker for over 9 years. After graduating from Southeastern Seminary with a Masters in Philosophy, Justin started his career as a professor, teaching Philosophy and Ethics. Later, Justin obtained both his Property & Casualty license and his Life and Health license and began working for State Farm and Allstate. In 2020, Justin began working as an i...

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Justin Wright

Updated June 2024

What You Should Know

  • Car insurance only pays for a rental car if you have rental car reimbursement on your policy
  • Rental car reimbursement is an add-on policy that costs extra
  • You aren’t covered if your car is undergoing routine maintenance or if you use the rental car for pleasure

You might wonder how to manage car rental when the car is in the shop. It’s easy to assume that your car insurance will cover the cost, but that’s not always true.

To rent a car while your car is being repaired, you need to have rental car reimbursement coverage added to your insurance policy. This is an extra add-on and typically incurs an additional cost. This coverage only applies if your car is in the shop due to a covered claim.

If your car breaks down, needs routine maintenance, or if you require a rental car for a vacation, you will have to pay for the rental car while the car is being repaired yourself.

Keep reading to learn more about rental car reimbursement and see if the coverage is right for you. (For more information, read our “Does my auto insurance cover rental reimbursement if my car is being repaired?“).

Comprehensive Guide to Managing Rental Cars During Car Repairs with Insurance

When your car is in the shop for repairs, getting around without a vehicle can be challenging. Understanding how to manage rental cars through your insurance can save you time, money, and hassle. This guide covers everything you need to know about adding a rental car to the insurance policy, finding affordable rental car insurance, and leveraging various rental reimbursement auto insurance options.

Adding a Rental Car to the Insurance Policy

To ensure you are covered when your car is in the shop, consider adding a rental car to the insurance policy. This involves purchasing rental reimbursement auto insurance or rental reimbursement car insurance coverage. This coverage is an optional add-on that provides payment for a rental car while your vehicle is undergoing repairs due to a covered claim.

Affordable Rental Car Insurance

Finding affordable rental car insurance is crucial, especially for trips to Mechanic Falls, Maine. Many insurance companies offer rental reimbursement auto coverage as part of their policy packages. Comparing quotes from different providers can help you secure cheap car rentals in Mechanic Falls and affordable rental cars, including options from Mercury.

When planning your trip, consider factors such as the duration of your rental and the type of vehicle you need to ensure you get the best deal possible. Whether you’re exploring Mechanic Falls or cruising around Maine, having reliable transportation at a reasonable price can enhance your travel experience. Don’t forget to explore options for cheap rental cars in Mercury to further optimize your budget.

Rental Car Reimbursement Auto Insurance

When your car is damaged in an accident, insurance covers a rental car during repairs. This is typically managed through rental car reimbursement auto insurance or rental car reimbursement coverage. It’s important to check your policy to see if it includes rental reimbursement auto insurance or if you need to add it.

Car Rental While the Car is Being Repaired

Many insurers, including State Farm-approved auto body shops near you and nationwide rental car insurance, offer policies that cover car rental while the car is being repaired. This ensures you have a rental car while the car is in the shop, allowing you to maintain your routine without interruption.

Car Match Rental Coverage

Some insurance providers, such as Esurance, offer CarMatch Rental Coverage, which ensures you get a rental car similar to your vehicle. This can be particularly useful if you rely on certain features or capacities that a specific type of car provides.

Direct Auto Insurance Rental Car

Direct Auto Insurance offers rental car coverage, providing straightforward options for securing a rental vehicle when your car is in the shop. These policies can be more affordable and easier to manage than going through traditional rental agencies.

Insurance for Car Repairs

When you need insurance for car repairs, it’s essential to understand what your policy covers. Some policies include insurance that covers car repairs and car rental repair options, ensuring you are covered for both the repairs and the rental car costs.

Nationwide Car Rental Insurance

Companies like Nationwide offer comprehensive policies like Nationwide car rental insurance that can be added to your existing auto insurance. These policies typically include Nationwide rental car insurance options, making it easier to rent a car while yours is being repaired.

Getting a Rental Car Through Insurance

Getting a rental car through insurance involves understanding your policy’s terms and coverage limits. State Farm will pay for a rental car during repairs or another provider, knowing how to activate your rental car reimbursement insurance is key to avoiding out-of-pocket expenses.

Rental Car Maintenance

It’s also important to be aware of rental car maintenance responsibilities. Even though the rental is temporary, maintaining the car in good condition is crucial to avoid additional fees.

Navigating the complexities of renting a car while your car is being repaired can be made simpler with the right knowledge and preparation.

By understanding the various options for rental reimbursement auto insurance and rental car reimbursement coverage, you can ensure that you remain mobile without incurring significant costs. Always review your policy and consider adding necessary coverages to avoid surprises during car repairs.

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Does my car insurance cover rental cars?

A basic car insurance policy doesn’t include rental cars since liability auto insurance coverage only pays for bodily injuries and property damage to others. However, full coverage car insurance, including collision and comprehensive coverages, pays for damages to your vehicle from various causes.

You can add rental car coverage if you have full coverage, but it doesn’t come with it. Insurance covers rental cars if you have specific coverage like rental car reimbursement on your policy.

Below are examples of when rental reimbursement coverage kicks in during car repairs:

  • Accidents
  • Acts of nature, such as floods, tornadoes, and hurricanes
  • Falling debris, such as hail or tree limbs
  • Theft
  • Vandalism
  • Fire or smoke damage
  • Animal damage, such as hitting a deer or squirrels damaging your car

Read more: What happens if I don’t agree with the amount the insurance company is offering me for repairs to my vehicle?

If someone else causes the accident, their car insurance may pay for your rental car. However, you’ll have to wait for their insurer to approve the rental and be subject to their limits.

Adding rental car coverage to your policy costs extra, but it’s generally less than renting a car for one day. Including rental car reimbursement on your policy is an inexpensive way to ensure you always have a ride without waiting on another insurance company.

Read more:

What is rental reimbursement coverage?

Will insurance pay for a rental car during repairs? If you have rental car coverage, your insurance pays for a rental while your vehicle gets repaired from a covered claim. However, many insurance companies require full coverage to add rental reimbursement.

Each car insurance company decides how it deals with rental car coverage. Some companies pay the rental car company directly, and some require you to pay, then they reimburse you. 

This table shows how some of the best auto insurance companies handle rental car coverage.

Rental car reimbursement coverage doesn’t usually come with a standard insurance policy. Instead, it’s an added feature that increases your rates, and not all insurers offer the coverage.

In addition, rental reimbursement coverage does have limits. For example, your policy may pay up to $30 daily for a rental for up to 30 days. So if you choose a more expensive vehicle or need the car for longer than a month, you’ll have to pay any additional fees for your rental out of pocket.

Some insurers also allow you to use public transportation, taxis, and rideshares with the coverage. Check with your car insurance company to see if you have rental car reimbursement coverage and how to use it.

Does insurance cover the rental car when a car is in the shop? Again, there isn’t a cut-and-dry answer — it depends on your car insurance. Many car insurance policies extend to rental cars but read your policy to determine if you need extra coverage.

When doesn’t car insurance cover rental cars?

Car insurance pays for a rental car if your vehicle is getting repaired from a covered loss. However, don’t expect your insurance to pay if you need a rental car for another reason.

Examples of when car insurance doesn’t cover rental cars include:

  • Vacation
  • Routine maintenance, such as oil changes 
  • Mechanical breakdowns, such as engine repairs
  • You don’t have car rental insurance coverage on your policy

If my car breaks down, will insurance cover a rental? No, insurance only covers rentals if your vehicle needs repairs from a covered claim, such as an accident, fire, or vandalism.

Read more:

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Do you need rental car reimbursement?

Although the cost of rental car reimbursement is typically low, it’s still an added expense. Removing unnecessary coverages is a great way to lower your auto insurance rates

Keep in mind that you may not need rental car reimbursement coverage at all. For example, you can skip coverage if you have another car you can drive while yours gets repaired.

Additionally, if you can use public transportation, borrow a friend’s car, or get rides from others, you don’t need the additional cost of rental car coverage.

Rental Reimbursement Coverage and Coverage for Repairs

When considering your auto insurance policy, you might wonder, “Do I need rental reimbursement?” It’s an optional add-on that could prove invaluable in certain situations.

Similarly, you may question, “Does car insurance cover repairs?” Coverage for repairs typically depends on the nature of the damage and your policy’s provisions. Understanding these aspects can help you make informed decisions about your auto insurance coverage.

Does Insurance Include Rental Car Reimbursement: The Bottom Line

Insurance covers rental cars if you have the right policy. Rental car reimbursement is a feature you can add to your policy that pays for a rental if your vehicle gets damaged under a covered claim.

Most policies don’t automatically include the feature, and it makes your rates increase. However, rental car reimbursement is typically inexpensive. You can add or remove the coverage at any time.

Rental car reimbursement doesn’t cover a rental for vacation, routine maintenance, or if your car breaks down. Additionally, you might not need the coverage if you have another vehicle to drive, can take public transportation, or can get a lift from someone else.

Frequently Asked Questions

Does my car insurance cover rental cars?

A basic car insurance policy doesn’t include rental cars since liability auto insurance coverage only pays for bodily injuries and property damage to others. However, full coverage car insurance, including collision and comprehensive coverages, pays for damages to your vehicle from various causes.

What is rental reimbursement coverage?

Rental reimbursement coverage is an optional add-on to your car insurance policy that pays for a rental car while your vehicle is being repaired from a covered claim. It is not automatically included in standard policies and may require full coverage.

When doesn’t car insurance cover rental cars?

Car insurance pays for a rental car if your vehicle is getting repaired from a covered loss. However, it doesn’t cover rental cars for non-accident-related reasons, such as routine maintenance, breakdowns, or vacations.

Do I need rental car reimbursement coverage?

Whether you need rental car reimbursement coverage depends on your individual circumstances. If you have alternative transportation options or access to another vehicle, you may not need this coverage. Additionally, if you can use public transportation or get rides from others, you may not require rental car reimbursement.

Is there a time limit on how long insurance pays for a rental car?

Yes, each car insurance company sets its own rules regarding rental car coverage. Typically, there is a daily limit and a maximum number of days for which they will reimburse you for a rental car after a covered loss. Once the time limit is reached, you will be responsible for paying for the rental car yourself.

Can I add a rental car to my insurance?

Yes, you can add rental reimbursement coverage to your existing auto insurance policy, typically for an additional premium.

Can I add rental coverage after an accident?

No, rental reimbursement coverage must be added to your policy before an accident occurs. You cannot add it retroactively.

Can I add rental reimbursement after an accident?

No, rental reimbursement coverage cannot be added after an accident has already occurred.

Can I get a rental car through my insurance if my car is in the shop?

Yes, if you have rental reimbursement coverage, your insurance can cover the cost of a rental car while your vehicle is being repaired for a covered claim.

Can I get a rental car while my car is in the shop?

Yes, if you have rental reimbursement coverage on your auto insurance policy, you can get a rental car while your car is in the shop for repairs related to a covered claim.

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