Rental car reimbursement is an available coverage intended to help you stay on the road if your vehicle is out of commission. This optional coverage can help to keep you on the road while your vehicle is being repaired under a claim. Strict guidelines lay out when you can use the rental car coverage, depending on whom you use for insurance. At American Auto Insurance, we’re glad to be able to provide our clients with service. If you have questions about when you can use rental car reimbursement, you’re in the right spot.

What Is Rental Car Reimbursement? 

Rental car reimbursement coverage is a unique type of policy that drivers can take out to cover the cost of a rental vehicle if they’re in an accident and their car is damaged. The insurance policy will pay a fixed amount per day toward the cost of a rental vehicle for you to drive while your vehicle is being repaired or if you’re in the process of buying a new vehicle. For example, you may select an amount such as $25 per day or $500 per loss as your limits. This coverage would mean that your insurance company would pay up to $25 per day, but no more than $500 per claim.

It’s important to confirm the details of your policy with your insurance carrier. American Auto Insurance can provide you with coverage at affordable prices. Reach out today to get your policy started.

Examples of When You Can Use Your Coverage

Rental car billboard
Image via Flickr by Håkan Dahlström Licensed CC BY 2.0

Your rental car will only be reimbursed under specific conditions. The policy will not pay if you’re taking your car in for routine services or maintenance. It also won’t pay if you need a rental car to drive the family to your next vacation destination. It does, however, cover the following examples:

  • You were involved in an accident and filed an insurance claim for repairs.
  • Your vehicle was not driveable after an accident.
  • Your vehicle was totaled, requiring you to find a new one.

Most types of coverage are available right away, meaning that if you obtain coverage today and are in an accident next week, you’ll be covered. This means that you don’t have to wait on the other party’s insurance to assess the claim and pay for the rental car.

For How Long Does Rental Reimbursement Pay?

Generally, insurance companies pay for rental car reimbursement for 30 days after an accident, with the possible exception that the accident was at the fault of the driver. This affordable coverage provides enough time for repairs to be done or for the client to find a replacement vehicle if their current vehicle was a total loss. If you do happen to need a rental longer than your provided time frame, it will need to be verified before any payments are released. Check your policy for specific details regarding future claims.

Is It Worth It To Carry Rental Reimbursement?

Rental car reimbursement coverage doesn’t typically carry a hefty bill. Since you can’t predict when or if you’ll be involved in an automobile accident that puts your car out of commission, the slight increase in your policy is worth it. Depending on how long you’ll be out of a vehicle, this coverage could pay for itself quickly. If you have questions on how much your coverage would cost, give us a call at 773-202-5060, and one of our agents will be happy to help.

Why Choose American Auto Insurance?

American Auto Insurance is a top-rated insurance provider of low-cost insurance to the state of Illinois. Our local agency is headquartered in Chicago, with centers throughout the state, including Springfield, Champaign, and Peoria. We understand that our clients need fast solutions and appreciate the small-business mindset that we maintain. Talk to one of our agents today, and we can find coverage that works for you.

Types of Coverage We Offer

At American Auto Insurance, we not only provide you with affordable rental car reimbursement, but we can also provide you with several other types of auto insurance without breaking the bank.

  • SR22 Policy. You’ll need this if your driver’s license has been revoked or suspended due to driving without insurance.
  • Comprehensive Physical Damage Coverage. This will cover losses that occur due to a reason other than a collision, including a flood, fire, or stolen vehicle.
  • Collision Coverage. This policy will pay for damages that happen due to a collision, such as your vehicle being hit by another vehicle or object.
  • Medical Payments. This will pay for medical expenses that you, or anyone in your vehicle, incur due to an accident.
  • Uninsured Motorists Coverage. This covers you if you’re injured in an accident with an uninsured driver.
  • Property Damage Liability. This coverage will protect you if you damage another vehicle or someone else’s property. It will also provide you with legal defense coverage if the other driver files a lawsuit against you.
  • Bodily Injury Liability. This type of coverage pays out for damage to people instead of vehicles. It protects you if you cause injuries, or death, to someone while operating your vehicle. It also provides you with legal defense coverage if the other driver files a claim against you.
  • Rental Reimbursement. Lastly, we offer the rental reimbursement coverage mentioned above. If you’re unable to drive your vehicle due to reasons covered under collision or comprehensive insurance, you’ll be offered a rental (typically covered up to $25 per day).

We understand that our clients are real people, and that having affordable coverage is a must. Reach out to one of our agents, and we’ll be happy to help you find the plan that’s right for you.

Reach Out to American Auto Insurance Today

If you have questions regarding rental car reimbursement or any of your policies, reach out to American Auto Insurance today. With over 30 years of experience, we’re sure we can help you find the answers you need. We proudly serve the entire state of Illinois, including Chicago. You can reach us by phone at 773-286-3500, as well as by reaching out to your local agent. We look forward to helping you with all of your automobile insurance needs.


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