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How Does a Rental Car Reimbursement Work?

hand giving rental car keys to driver reimbursed by insurance company

Imagine your car getting damaged after an accident. You’ll need to rent a car to get around, so you ask yourself: Who will pay for the rental? That depends on who was at fault and the coverage you have. Depending on the situation, you might be eligible for rental car reimbursement. Let’s take a closer look at how this works. 

When Do Insurance Companies Pay for a Rental Car?

If someone else is at fault for the accident, his or her insurance company will likely pay to fix your vehicle. The company also might pay for you to use a rental car, although that depends on the at-fault driver’s policy.

Suppose you’re the at-fault driver and have liability insurance. In that case, your insurance company will pay to fix the other driver’s vehicle. It also might cover that driver’s rental car, but it won’t pay for yours.

To ensure that you’ll get rental car reimbursement, no matter who is at fault, you need a collision or comprehensive insurance policy. Then, you can add rental car reimbursement to the plan.

The policy will reimburse you for a rental car, even if you’re at fault for the accident. That means you don’t have to worry about getting around or paying an expensive bill if you’re in an accident.

Rental Car Reimbursement Limits

You also need to consider the coverage limits when getting rental car reimbursement. You will have different coverage options, but most include a daily and claim limit. For instance, the policy might cover up to $30 a day, with a claim limit of $900. Once it reaches $900, you will have to pay out of pocket. You can also find a policy with a much higher claim limit, such as $2,250.

crashed cars in accident with driver needing a rental car reimbursement

The process can be confusing, so it’s best to speak to a licensed insurance agent. They can explain how much people usually need rental cars. You can pick a policy that makes sense for your situation. 

How to Get a Rental Car

Rental car reimbursement insurance typically provides people with two choices when they need a vehicle. First, they have the option of renting the car and paying for it. Then, they submit the bill to the insurance company and get reimbursed. People who are very particular about the vehicle they get often go this route. 

Second, most policies include the option of having the insurance company arrange for the rental vehicle. The insurance company handles the payment, so the claimant doesn’t have to pay out of pocket. People often end up with better cars than they could get on their own due to the insurance company’s relationship with rental car companies.

Get a Quote for Rental Car Reimbursement Coverage

If you don’t want to pay for a rental car if you’re in an accident, it’s time to get rental car reimbursement coverage. Remember, you need to begin by getting collision or comprehensive coverage if you don’t already have it. Then, you can add rental car coverage to your policy for additional protection. Reach out to a licensed insurance agent to get quotes for coverage. 

Did your car get damaged in an accident? Don’t stress out! Add rental car reimbursement coverage to your auto insurance policy. Start your free car insurance quote online, over the phone, or at one of our offices near you. You could save up to $839* when you switch to Freeway Insurance!

*Based on a Q1 2020 study of Freeway Insurance customers who reported saving when they switched.

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