StateCover Guide
Glossary

Rental reimbursement

By Editorial team, last reviewed

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.

Sources

Last reviewed by the StateCover Guide editorial team. See our editorial policy. Spotted an error? Tell us.