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Rental Reimbursement Coverage: The Basics

Updated: May 2018

Rental reimbursement coverage helps you pay for transportation expenses, such as a rental car or public transit fare, while your own vehicle is being repaired after a covered insurance claim. It does not apply if your vehicle needs routine maintenance work or if you need to rent a car on vacation.

Rental reimbursement coverage may be called "rental car coverage" or "transportation expense coverage." It's typically optional on a car insurance policy, which means you need to add it to your policy and pay an extra premium for the coverage.

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The Debunkinator: Insurance Misconceptions Debunked.

You encounter unexpected car rental costs while your car is being repaired -- are you protected? Most likely, you're not protected. Rental car coverage is not automatically included in all auto policies. Make sure to consider purchasing the optional coverage, so when your car's stuck in the repair shop because of a covered loss, you have the additional coverage to help rent one.

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What Does Rental Reimbursement Typically Cover?

Rental reimbursement coverage helps you pay to rent a car, or for alternate transportation — such as bus fare or cab rides — but only if you need it because of a covered loss. When you can use rental reimbursement coverage depends on the other types of coverage you have on your car insurance policy.

For example, if you have collision coverage and you're in accident with another car, that may be considered a covered loss. Your rental reimbursement coverage may help pay for transportation expenses while your vehicle is being repaired after the collision.

If your car is damaged by hail, you'd need to have comprehensive coverage on your policy for your insurer to help cover the claim. Then, your rental reimbursement coverage may help pay for transportation expenses while your vehicle is in the shop to repair the hail damage.

Rental Reimbursement Coverage Limits

Your insurance coverage is subject to limits, or the maximum amount your insurer will pay for a covered claim. Rental reimbursement coverage typically has a daily limit, and a maximum number of days it can be used. Example: Up to $30 per day for a maximum of 30 days, until your damaged car is usable again. If the rental car you choose costs more or if you need to use it for longer, you'd have to pay out of pocket for the costs that exceed the limits. Read your policy so you know the limits of your rental reimbursement coverage before you need to use it.

Do You Have to Pay a Deductible for Rental Car Coverage?

Rental reimbursement coverage typically does not have a deductible. But, if you have a covered claim, you'll likely have to pay a deductible on your collision or comprehensive coverage to get your car repaired. The deductible is the amount you pay out of pocket toward a covered claim. You choose your deductible (for example, $500) when you buy coverage.

Have questions about rental reimbursement coverage? Contact an Allstate agent today.

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This content is for informational purposes only and may not be applicable to all situations.

Coverage subject to terms, conditions, and availability. Policy issuance is subject to qualifications. Allstate Insurance Company, Allstate Indemnity Company, Allstate Fire and Casualty Insurance Company, Allstate Property and Casualty Insurance Company, Northbrook, IL. © 2019 Allstate Insurance Company, Northbrook, IL.
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