Will Insurance Pay For Rental Car During Repairs? What You Need to Know

When your vehicle is in the shop for repairs due to an accident or other covered loss, you may find yourself in need of temporary transportation. Many auto insurance policies offer rental car coverage, which can help cover the cost of a rental vehicle while your car is being repaired. However, there are several important factors to consider when it comes to rental car coverage and how it works. In this article, we’ll explore what you need to know about whether your insurance will pay for a rental car during repairs.

Will Your Insurance Policy Cover a Rental Car During Repairs?

Before diving into the specifics, it’s crucial to understand that rental car coverage is typically an optional add-on to your auto insurance policy. While some insurers may include it as part of their standard coverage, others may require you to purchase it as an endorsement or rider. Understanding the details of your policy and the coverage options you’ve chosen is essential to determine if you’ll be reimbursed for a rental car while your vehicle is being repaired.

7 Things to Consider About Rental Car Coverage

You already have a lot to worry about after a car accident. One of them shouldn’t be getting to work the next day. 

We’ve all been there, and finding other ways to get around while your car is being fixed can be a pain. But rental reimbursement coverage can save you money and ease some of your stress after an accident.

Before you buy rental car reimbursement coverage, here are seven things you should know: 

1. Rental Car Coverage is Often Optional

As mentioned earlier, rental car coverage is usually an optional add-on to your auto insurance policy. If you didn’t purchase this coverage when you initially obtained your policy, you may not be eligible for reimbursement for a rental car during repairs. It’s essential to review your policy documents or speak with your insurance agent to understand if you have this coverage.

2. There is a Coverage Limit

Even if your policy includes rental car coverage, there is typically a limit on the amount your insurer will pay per day and the total number of days they will cover. These limits can vary significantly between insurance companies and policy types. For example, some policies may cover up to $30 per day for a maximum of 30 days, while others may have higher or lower limits.

3. Your Vehicle Must Be in the Shop Due to a Covered Loss

You can use rental cost coverage while your car is being fixed after an accident or another covered loss, but not for regular upkeep or fun. If you have an accident and your car is at the body shop, you can get up to your limit on a rental car. However, rental reimbursement coverage would not apply if your car is in the shop overnight for routine maintenance or if you rent a car for a family road trip.

4. You Can Use Rental Car Coverage Right Away

In most cases, you can take advantage of your rental car coverage as soon as your vehicle is taken to the repair shop. There is usually no waiting period before your coverage kicks in, allowing you to secure a rental car immediately after dropping off your vehicle for repairs.

5. No Need to Worry About Additional Insurance for the Rental Car

When you rent a car under your insurance policy’s rental car coverage, the rental car is typically covered by your existing auto insurance policy. This means you don’t need to purchase additional insurance from the rental company, as long as you’re renting within the coverage limits and guidelines outlined in your policy.

6. You May Not Need Rental Car Coverage at All

While rental car coverage can be a convenient option, it’s important to consider your personal circumstances and transportation needs. If you have access to alternate means of transportation, such as a spare vehicle, public transportation, or the ability to work from home, you may not need to pay for this additional coverage.

7. Rental Car Coverage May Cost Less Than You Expect

The cost of rental car coverage can vary depending on your insurance provider, the level of coverage you choose, and other factors. However, many insurers offer this coverage at a relatively affordable rate, especially when compared to the potential cost of renting a car out-of-pocket for an extended period.

People Also Ask:

Does my insurance cover a courtesy car?

Some insurance policies may include coverage for a courtesy car provided by the repair shop while your vehicle is being repaired. The availability and terms of this coverage can vary, so it’s essential to check your policy details or speak with your insurance agent.

Does my insurance cover a hire car?

In most cases, “hire car” is another term used to refer to a rental car. If your policy includes rental car coverage, it should cover the cost of a hire car (rental car) while your vehicle is being repaired due to a covered loss.

Can you claim insurance if the car breaks down?

Generally, auto insurance policies do not cover breakdowns or mechanical failures that occur due to normal wear and tear or lack of maintenance. However, suppose your vehicle breaks down as a result of a covered incident, such as an accident or vandalism. In that case, your insurance may cover the cost of repairs or a rental car, depending on your policy’s terms and conditions.

Does Admiral give you a courtesy car?

Admiral, like many insurance companies, may offer rental car coverage or courtesy car options as part of their auto insurance policies. However, the availability and terms of this coverage can vary depending on the specific policy you have with Admiral. It’s best to review your policy documents or speak with an Admiral representative to understand the details of your coverage.

Final Thought

Whether your auto insurance will pay for a rental car during repairs depends on several factors, including the specifics of your policy, the reason for the repairs, and the coverage options you’ve chosen. By understanding the key considerations outlined in this article, you can make an informed decision about whether rental car coverage is right for you and what to expect if you need to utilize this coverage. Remember, it’s always a good idea to review your policy documents carefully and consult with your insurance agent if you have any questions or concerns.

Want to Learn More? Contact your local independent Grange agent for more information on rental reimbursement coverage.

Reference

Insurance Information Institute:

This article provides information and suggestions. However, the policy language applies if there are any contradictions with the policy coverage descriptions in this article. Implementing any of these suggestions does not guarantee coverage.