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What is Rental Reimbursement?

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Rental Car Reimbursement

Rental Car Reimbursement    Photo: Insomnia Cured

What is Rental Reimbursement?

In the event you are involved in an accident, rental reimbursement (or rental car coverage) covers the cost of a rental car while your car is being repaired. Rental reimbursement only covers a rental car for repairs covered under your collision and comprehensive coverage, including car accidents, theft, vandalism, or severe weather, and will not cover normal maintenance or repairs.

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When choosing a rental car agency, you can either contact your insurance company, and they will give you a list of approved providers to choose from, or you can choose your agency of choice. If you choose an approved rental car agency, they will bill your insurance company directly. If you choose a different agency, you’ll have to pay the costs up front, and then submit a claim to your insurance company for reimbursement.

Usually premiums are determined by a pay-per-day and per-accident limits. For example, you may have a policy that covers $25 per day and $750 per accident. This means you’ll have to pay out of pocket after you reach your $750 limit, or if you rent a car that’s more than $25 per day.

You should have no trouble renting a car similar to your own, however if you know that the repairs will be lengthy, you may consider downgrading in order to make sure you don’t reach your per accident limit.

Is Rental Reimbursement Required?

Rental reimbursement is optional, and not required by any state. However, it’s worth considering if you don’t have any secondary mode of transportation, as rental car fees can add up quickly – especially if you need it for multiple weeks.

Here is Cheri Roman of Roman Agency, Inc. to explain the details of rental reimbursement insurance:

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