How Does Rental Reimbursement Coverage Work?

When you file a claim for a covered accident, Rental Reimbursement Coverage will cover the cost of renting a car up to the limits specified in your policy. You will need to provide receipts and documentation to your insurance company to receive reimbursement.

What Are the Limits of Rental Reimbursement Coverage?

The limits of Rental Reimbursement Coverage vary depending on your insurance policy. Typically, there is a daily limit and a maximum limit for the total amount reimbursed. It's important to check your policy details to understand the specific limits that apply to your coverage.

What Is Rental Reimbursement Coverage?

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Key Takeaways

If you need to rent a car after an accident, rental reimbursement coverage can help pay for one after a covered loss.
Sometimes you’ll need to purchase additional coverage, but at The Hartford, we’ll automatically apply your car insurance coverage to your rental, so you can drive with peace of mind knowing you’re protected.
The rental company may offer additional coverages you can purchase. However, some may overlap with your current insurance and may not be necessary.

Rental Car Reimbursement vs. Insurance for Rental Cars

Whether you’re renting a car for vacation or because yours is in the shop, one question we hear often is: “What is rental reimbursement insurance?” Simply put, rental car insurance coverage helps pay for a rental car if your vehicle gets damaged in an accident or another covered incident. At The Hartford, your car insurance coverage will automatically extend to your rental without needing to purchase anything extra.

But it’s important to know that this coverage may not apply if you need a rental car for vacation or routine maintenance work. In some cases, it only kicks in after a covered loss on your auto insurance. Rental reimbursement is designed to help when you can’t drive your personal car because of a claim. The quickest way to learn more about your coverage is to contact your insurance provider.

man protected by rental reimbursement insurance

How Does Rental Reimbursement Work?

Rental reimbursement coverage can be added to your car insurance policy if you need additional protection. The cost of coverage is subject to daily limits, but you can choose your daily limit based on how much you think it’ll cost to rent a car in your area.

Your coverage may limit the types of vehicles you can rent before having out of pocket expenses. So, if you choose a lower amount of coverage and your daily rental vehicle costs exceed your coverage limits, you’ll have to pay the difference out of pocket. But you can make changes or upgrade your coverage to help reduce any potential additional costs.

How To Use Accident Rental Car Reimbursement

If you’re in a car accident, rental car reimbursement coverage can help pay for a rental while your car gets fixed. Many people assume rental coverage is built into their auto insurance with rental car reimbursement as part of the package, but that’s not always the case.

If you have car insurance, rental car reimbursement coverage isn’t always automatically included. In that case, you’ll need to add it to your policy. But be aware that this optional coverage is typically only available if you carry both comprehensive and collision coverages.

Tip:

At The Hartford, the protection you have on your auto policy will automatically extend to help cover your rental car.

Transportation Expense

Getting in an accident is stressful enough, but what are your options while your car is being repaired? Watch this short video to learn more.

Video Transcription

Hi there, I'm Matt McCoy. You know, getting in an accident is stressful enough. But what happens while your car is being repaired? Most people can't afford to stop driving for a week or more until they get their car back, which is why it's smart to have transportation expense coverage from The Hartford. This will help pay for the cost of a rental car while your vehicle is in the shop for repairs after an accident. In most cases, The Hartford will even take care of making the rental reservation for you. You're going to want to choose the right coverage level to manage your out-of-pocket costs and get you a rental car that meets your needs. For some, a compact vehicle works but if you've got six kids and you drive an SUV, you'll want to consider rental limits to cover a larger vehicle. Contact The Hartford to help you determine the auto rental coverage that's just right for you.

woman researching rental car reimbursement insurance

Does My Insurance Cover Rental Cars?

If you’re asking yourself, “Do I need rental car insurance?” The answer is that it depends. The Hartford’s car insurance policies extend coverage to a rental car, but others may require you to purchase additional protection. That’s why reviewing your car insurance policy is always a good idea.

At-the-Counter Auto Insurance for Rental Cars

If you rented a car, they probably asked you about insurance coverage at the rental counter. Rental car companies typically offer four coverage options:

Liability coverage: Helps cover costs if you damage another person’s property or hurt someone while driving your rental car. This can cost about $7 to $14 a day.²
Loss-damage waiver: Helps you avoid financial responsibility if there’s damage to the rental. Also known as the collision damage waiver, it can cost an average of $10 to $20 a day.³
Personal accident insurance: Helps cover medical bills if you or your passengers get hurt in a car accident. This coverage can cost about $1 to $5 a day.⁴
Personal effects coverage: If your personal belongings get stolen, this coverage, which costs about $2 to $5 a day, can help cover your replacement costs.⁵

Tip:

If you’re not sure whether your rental car is covered, ask your insurance company. They can also help with things like calculating your deductible or estimated mileage, and whether fuel costs (like gas) are included or excluded.

woman protected by car insurance rental car reimbursement

The Hartford is an insurance company backed by decades of experience. For over 200 years, we’ve been helping our customers drive with confidence knowing they have the coverage they need on the road. Get a car insurance quote online or call The Hartford at 888-546-9099 to learn how we can help protect you and your loved ones.