How does rental car reimbursement coverage work?
If you carry rental reimbursement coverage, you'll need to rent a car, cover the cost out of pocket, and submit receipts to be reimbursed in most cases. Some insurers have relationships with rental car companies that make the reimbursement process seamless, while others may require you to submit receipts separately for reimbursement. Some insurers may allow you to bill your rental car directly to them, but it's less common.
Some insurers may also cover alternate transportation costs with rental car reimbursement coverage, such as cab fares, rideshare trip fees, or bus fares if you're unable to get a rental car.
Keep in mind that rental reimbursement coverage only applies when your car is damaged in a covered accident or loss. It doesn't apply if your car is in the shop for routine maintenance.
Is there a deductible with rental reimbursement coverage?
In most cases, rental reimbursement coverage doesn't have a deductible. However, this coverage only kicks in when your vehicle has been in a covered accident. If the damage is bad enough to warrant needing a rental car, then you'll likely be submitting a claim under your collision or comprehensive coverage as well, both of which include a deductible.
How long will insurance pay for a rental car after an accident?
In most cases, you'll have a daily limit for rental costs, an overall rental cost limit, and a total number of days that are eligible for rental car reimbursement. Exact coverage limits will vary by insurer, so it's important to check for specific coverage information. With Progressive's rental car reimbursement coverage, daily limits are typically $40-$60 and coverage lasts for a total of 30 days.
Who is responsible for a rental car after an accident?
If you carry rental car reimbursement coverage, you can file under your auto policy regardless of who caused the accident. If the other driver is at fault, their insurance may end up paying for your rental car, but it may make sense to use your rental reimbursement coverage if the claims process is likely to take a while. Once fault has been determined, you or your insurance company should be reimbursed by the at-fault driver's insurer.
If you don't carry rental car reimbursement coverage, you will be responsible to pay for a rental car out of pocket. If the other driver is deemed at fault, you may be reimbursed for the rental, but it may take a while for the reimbursement to come through.
How much is rental reimbursement coverage?
The cost of rental car reimbursement coverage varies by insurer. If you're unsure if you already have rental reimbursement coverage, check the declarations page of your policy, or call your insurance company to verify your coverage.
Is rental reimbursement coverage worth it?
It depends on how comfortable you are with unexpected expenses. Renting a car for an extended period of time can get expensive quickly, so it may make sense to pay a few dollars a month to protect yourself against a large, unexpected expense after an accident. It can also provide faster reimbursement for a rental than an at-fault driver's insurance typically would.
On the other hand, if you're comfortable covering the cost of a rental car out of pocket, you may not find it necessary.
How to get rental car reimbursement coverage
New Progressive customers
Get a quote for auto insurance and add rental car reimbursement coverage.