If you’ve been in an accident and your vehicle is in the shop, the last thing you should be worried about is how you’re going to get to work, run errands, or pick the kids up from school. Having rental reimbursement coverage ensures your transportation needs during this time are taken care of so you can get back on the road the same day. Read on to discover whether getting rental reimbursement coverage is the right choice for you.

What Is Rental Reimbursement?

Man driving his car
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Rental reimbursement is a form of coverage you can add to your normal auto policy by contacting your insurance provider and paying a small monthly fee. It helps you cover the costs of using a rental car while your vehicle is in the shop due to a covered claim. This type of plan may also cover your public transportation fare while your vehicle is being repaired.

It’s important to note that rental reimbursement does not cover routine maintenance — rather, it covers the repairs that take place as a result of a collision, accident, or another claim your auto insurance company is covering.

What Does Rental Reimbursement Cover?

Most rental reimbursement plans will allow you to choose which car rental service or transportation provider you want to work with in your area. While you’re responsible for paying the rental costs upfront, your insurance company will reimburse you as long as you stay within the limits of your coverage. Your insurance company may also offer direct billing if you choose a rental provider who they partner with. This can prevent you from having to pay out of pocket and wait to be reimbursed at a later date.

Make sure you review your policy carefully so you can choose the most convenient and affordable rental service. Usually, rental reimbursement policies cover up to $25 per day, but there may also be a total claim reimbursement limit. For example, your policy may reimburse you up to $25 per day until you’ve reached your $750 claim limit. If you have any questions about when you can use your rental reimbursement, just give us a call. One of our auto insurance experts will guide you through all the fine print and details.

How Long Does Rental Reimbursement Coverage Last?

Depending on the coverage you choose, there may be a maximum number of days you’re able to continue using your rental reimbursement while your vehicle is being repaired. For example, your rental reimbursement may offer you up to $25 per day for a maximum of 30 days. Try to get your vehicle into an auto body shop as soon as possible to speed up the repair process and avoid having to pay rental fees out of pocket.

If your vehicle is considered a total loss, your insurance company may also set a time limit for how long you can continue to be reimbursed for rental costs. In this case, it’s a good idea to review your policy and start shopping for a new car as soon as possible to ensure your rental costs are covered.

Is There Anything Rental Reimbursement Doesn’t Cover?

While every rental reimbursement policy is different, there are a few things this type of coverage typically doesn’t include. Often, fees the rental service provider charges for mileage or a security deposit are not covered by a rental reimbursement plan. The cost of gas is also usually something you will pay out of pocket, just as you would if you were driving your own vehicle.

It’s also important to remember that if the daily rate of your rental vehicle is more than your daily reimbursement limit, you will need to pay the difference. We suggest discussing your options with the rental service provider so you can select a vehicle with a daily rate that is fully covered by your rental reimbursement plan. Choosing to rent a more affordable vehicle can save you a substantial amount of money if your car’s auto repairs take longer than expected.

Should I Get Rental Reimbursement Coverage?

Adding rental reimbursement coverage to your auto insurance policy is typically very affordable and an excellent way to reduce the stress of being involved in an accident in the future. Having rental reimbursement coverage can provide you with additional time to navigate your auto repairs or find a new vehicle without worrying about how to pay for transportation. This can make it easier for you to make smart decisions about fixing your current vehicle or purchasing your next car instead of having to rush into a big financial commitment.

Accidents can happen even to the safest drivers, and auto repairs can take longer than expected. The added peace of mind that rental reimbursement coverage provides makes the slight increase in your policy well worth it.

How Can American Auto Insurance Help?

As a top-rated insurance provider, we strive to offer quality policies at prices our customers can afford. With several locations throughout the state of Illinois, including in Chicago, Champaign, Springfield, and Peoria, we’re able to provide excellent service and fast solutions when you need them most. If you’re interested in adding rental reimbursement coverage to your auto policy, simply contact our Customer Call Center at 800-483-4868. We’ll be happy to share pricing information and guide you through the process every step of the way.

Do you have questions about rental reimbursement coverage or another type of insurance we provide? We’re ready to answer those, too. One of our friendly auto insurance representatives will discuss all of your options to help you choose a policy that works for you. Alternatively, if you already have an auto insurance policy with us but want to add on additional coverage like rental reimbursement, an SR22 policy, or medical payments, we can also help you with that.

At American Auto Insurance, we provide a wide range of affordable coverage options to make finding the right plan easy. View all of our insurance packages online or reach out to us to get your free quote today.


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