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.
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.
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.
Expert recommendations for peer-to-peer car rental: A guide to insurance coverage
– Michelle Megna contributed to this report.
Ask the Insurance Expert
Laura Longero
Executive Editor
Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.
Ask the Insurance Expert
John McCormick
Editorial Director
John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.
Ask the Insurance Expert
Leslie Kasperowicz
Managing Editor
Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.
Ask the Insurance Expert
Nupur Gambhir
Managing Editor
Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.
