Car rental reimbursement coverage is meant to help you cover due to your transportation expenses, such as a public transit fare, rental car, when your own vehicle is being repaired after a covered insurance claim. It does not apply when your vehicle is under routine maintenance work or if you need to rent a car on vacation.
Rental reimbursement coverage may be called “rental car coverage” or “transportation expense coverage.” It is usually optional on a car insurance policy, which means you have to add it to your policy and pay the extra premium for the coverage.
WHAT DOES RENTAL REIMBURSEMENT TYPICALLY COVER?
Rental reimbursement coverage helps you pay to rent a car, or for alternate transportation such as bus fare or cab rides only in cases when your car is being repaired from a covered loss. The rental reimbursement coverage usage depends on the other types of coverage you have on your car insurance policy.
As an example, if you have collision coverage and you’re in an accident with another car, that may be considered a covered loss. Your car rental reimbursement coverage may help pay for transportation expenses while your vehicle is being repaired.
If your car is damaged by hail, you will need to have comprehensive coverage on your policy so your insurer can help cover the claim.
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