Is Rental Reimbursement Coverage Worth It for Travel
It helps most if you travel by car and would otherwise be stuck paying for a rental out of pocket after an accident.
It depends on how you'd replace your car if it were out of service
Rental reimbursement pays for a rental car while your own car is being repaired after a covered claim. It doesn't pay out after a breakdown or if you just decide to rent a car on a trip. It only applies when your car is in the shop because of an accident or other covered damage.
For a lot of drivers it's worth adding because the cost is low next to what a rental runs per day, and a repair after a real accident can take weeks. Whether it's worth it for you depends on whether you have another car to drive in the meantime, whether your credit card already covers a rental in that situation, and how long repairs tend to take with your insurer and body shop.
Whether you have a second car at home
If there's another car in the household you can drive while yours is repaired, rental reimbursement does less for you. The coverage exists to fill the gap when your car is the only one you have.
If you're the only driver, or the only car available is also the one that's damaged, that gap is real. A repair can run well past a week, and without this coverage you're paying for a rental the whole time.
Think about how you'd actually get to work or run errands for two or three weeks with your car gone. If the honest answer is you'd need to rent something, that's the case for carrying this coverage.
If you'd borrow a car from someone else or just go without for a while, the coverage matters less to you.
What your credit card already covers
Some credit cards include rental car coverage when you use that card to pay for the rental. But that benefit usually only applies when you're the one renting a car for a trip, not when your own car is in the shop after an accident.
Check your card's benefits guide for what it actually covers and when. The terms vary by card issuer, and some only kick in under narrow conditions.
Don't assume a card benefit replaces rental reimbursement on your auto policy. They're built for different situations, and relying on the wrong one can leave you without a car and without a way to pay for one.
If you're not sure what your card covers, call the number on the back of the card and ask specifically about rental coverage after an accident, not just rentals you book for travel.
Questions people ask about this
Does rental reimbursement cover a rental car on vacation if my car breaks down away from home?
No, rental reimbursement only applies when your car is being repaired after a covered claim, not for a mechanical breakdown. If you're worried about breakdowns specifically, ask your insurer about roadside assistance or towing coverage instead.
How long does rental reimbursement coverage last while my car is being fixed?
It depends on your policy and your insurer, since limits are usually set per day and have a total cap. Check your policy declarations page or ask your insurer what the daily and total limits are before you need to use it.
Can I use rental reimbursement if someone else damages my car?
Yes, as long as the damage is from a covered claim, it doesn't matter whether the accident was your fault or the other driver's. The claim still has to go through your insurer the same way any other covered repair would.
Does rental reimbursement pay for a bigger or nicer car than what I normally drive?
Usually not. Rental reimbursement is meant to cover a comparable rental, not an upgrade, and insurers typically set a daily limit rather than guaranteeing a specific type of car. Ask your insurer what class of rental the coverage is based on.
Is rental reimbursement the same as gap insurance or loan payoff coverage?
No, these cover different things. Rental reimbursement pays for a temporary rental car, while gap insurance covers the difference between what you owe on a car and its value if it's totaled. You can carry one, both, or neither depending on your situation.
See what adding rental reimbursement would cost next to what a few weeks of renting a car would cost you.
Pull out your current policy and check whether rental reimbursement is already included or listed as an option you declined. Call your credit card company and ask exactly what their rental coverage requires, since many only apply when you book the rental yourself and pay with that card. Think through how you'd get around for two or three weeks without your car, and whether that would mean renting one. If it would, ask your insurer what rental reimbursement costs to add and what the daily and total limits are. Compare that cost against a realistic rental bill for the length of time repairs usually take in your area.
