# Rental reimbursement

> Rental reimbursement defined: optional car insurance that pays for a rental while yours is repaired after a covered claim, up to daily and total limits.

Canonical page: https://statecover-guide.com/glossary/rental-reimbursement/  
Last reviewed: October 28, 2026 by the StateCover Guide editorial team  
General information, not legal or insurance advice.

## Quick answer

Rental reimbursement is optional coverage that pays for a rental car while your car is being repaired or replaced after a covered loss. It pays up to a daily amount and a maximum per claim, both shown on your declarations page.

## How it works

- **When it applies.** The California Department of Insurance ties it to losses covered under your comprehensive or collision coverage. So you generally need those coverages for rental reimbursement to pay.
- **What it pays.** A rental car, and in some policies, the Texas Department of Insurance notes, taxis or ride-hailing services.
- **How much.** It is sold as a daily amount with a total cap.
- **How long.** Texas explains that insurers pay for the time they consider reasonable to repair or replace your car.

When another driver is at fault, their liability insurer may pay for your rental through a third-party claim instead. Rental reimbursement matters most when you caused the crash, or when the damage came from something other than another driver, such as hail or a hit animal.

Example: your coverage pays $40 a day up to $1,200 per claim. A 20-day repair is covered at $40 a day, or $800. If you rent a car costing $55 a day, you pay the extra $15 each day yourself.

## Related terms

- [Loss of use](https://statecover-guide.com/glossary/loss-of-use/)
- [Comprehensive coverage](https://statecover-guide.com/glossary/comprehensive-coverage/)
- [Collision coverage](https://statecover-guide.com/glossary/collision-coverage/)
- [Third-party claim](https://statecover-guide.com/glossary/third-party-claim/)
- Guide: [Rental reimbursement coverage](https://statecover-guide.com/coverage/rental-reimbursement/)

## Sources

- [California Department of Insurance, Automobile Insurance Terms](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/01-auto/autoterms.cfm) — definition of rental reimbursement coverage, daily amount and maximum
- [Texas Department of Insurance, Auto insurance guide](https://www.tdi.texas.gov/pubs/consumer/cb020.html) — what rental coverage pays, how long, and when the other driver's insurer pays