CarInsurance.com Insights
- Rental car reimbursement coverage helps pay for the cost of a rental car while your vehicle is being repaired after a covered accident.
- It ensures you have transportation without out-of-pocket expenses for the rental.
- The coverage typically has daily and total limits specified in your policy.
Rental car reimbursement coverage covers renting a car as a substitute for your vehicle when it is disabled or is being repaired after a covered accident. Daily rental allowances, or limits, are subject to the terms of your car insurance policy.
Rental car reimbursement, or RREIM, only pays for your rental car costs if the repair work is being done because of a covered loss. If your car breaks down or has mechanical issues unrelated to a covered accident, rental car reimbursement coverage cannot be used.
How much does rental car reimbursement coverage cost?
Rental car reimbursement coverage typically only covers up to a specific daily limit. Information services company Experian says the typical policy covers about $30 to $40 per day for 30 days.
If you need to rent a bigger vehicle than the rental-car reimbursement allowance pays for or otherwise need to pay more for the daily rental cost, you will be responsible for the difference.
Check out our detailed guide: How to get the best rental car insurance
Is rental car reimbursement coverage mandatory?
No. Rental car reimbursement is optional coverage but if you don’t have a second vehicle to drive while your car is being fixed due to a claim, it’s a wise choice.
What happens if I don’t have rental car reimbursement coverage?
If you don’t carry this coverage, you may be without transportation or have to pay out-of-pocket for a rental if your car is damaged in an accident where you are at fault.
Also, if another driver is at fault but is uninsured, underinsured or their policy doesn’t cover a rental car, you may be without transportation or have to pay for a rental car while your vehicle is being repaired.
If you have an extra vehicle at your residence that you can use while one is being repaired due to a car accident, then rental car reimbursement coverage may be unnecessary.
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