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Rental car reimbursement you can count on

What is car rental reimbursement coverage?

When your car is in the shop for repairs following a covered loss, the last thing you want to worry about is how to get around. That’s where car rental reimbursement coverage steps in. This optional coverage can help cover the cost to rent a vehicle while your car is being repaired, so you can continue your daily life without disruption.

How does rental coverage work?

In these cases, reimbursement can apply to a rental vehicle, ride sharing, or public transportation costs.

Your coverage limits may look something like $20 per day, up to $600 total. If the repairs take longer than expected, and the rental car exceeds the maximum payout, you’ll need to cover the extra out of pocket cost. Always check your policy for specific limits, as these can vary. 

  • Rental car expenses when your car is in the shop for routine maintenance. 
  • The cost of a replacement vehicle if your car has a mechanical breakdown. 
  • If you decide to rent a car for any reason other than repairs for a covered incident, such as a vacation, this coverage won’t apply. 
  • Costs beyond policy limits: Rental costs that exceed the daily and total limits outlined in your policy are your responsibility. 
  • Additional expenses: Expenses like gas, mileage or any additional insurance from the rental company aren’t covered under rental reimbursement.

What is the difference between rental reimbursement and rental insurance?

Rental reimbursement coverage and rental car insurance may sound similiar, but they are designed for different situations.

 

 

 

 

 

 

 

Rental car reimbursement

 

 

 

 

Rental car insurance

 

 

 

 

What is it?

 

 

 

 

Pays for temporary replacement vehicle 

 

 

 

 

Provides coverage if you're involved in an accident while operating a rental vehicle

 

 

 

 

Coverage overview

 

 

 

 

Rental reimbursement helps cover the costs of renting a car while your vehicle is being repaired after a covered loss under your auto insurance policy. 

 

 

 

 

This is an optional add-on offered by the car rental company that provides coverage in the event of an accident while driving the rental vehicle, usually for an extra fee. 

 

 

 

 

When does it apply?

 

 

 

 

This typically applies after an accident or an event that’s covered by your other-than-collision or collision insurance.

 

 

 

 

This insurance typically covers damage to the rental car, damage to other property, theft of your personal belongings and medical expenses for you or your passengers if you're injured in an accident.  

 

 

 

 

For example … 

 

 

 

 

If you make a claim after being involved in a fender bender and need a rental car while your vehicle is in the shop being repaired, rental reimbursement coverage can apply. It can help cover the cost of that rental, up to your policy limit, while your car is being worked on.

 

 

 

 

You rent a car while on vacation and accidentally hit a mailbox. Your rental car insurance may cover the damages to the rental vehicle and the mailbox, depending on the coverage you purchase.

 

 

Rental reimbursement FAQs

Most policies have a $20 per day limit, up to $600 total, included with collision and other than collision coverage. To confirm the amount of coverage you have, please log in to review the Declarations page of your policy or contact your claim handler.

No, this coverage doesn’t apply if your car breaks down due to mechanical issues. It’s only applicable when your car is being repaired after an accident or another covered event.

Reimbursement coverage typically doesn’t have restrictions on the type of vehicle you rent. However, if you choose a more expensive car, such as an SUV or a luxury vehicle, you could exceed your coverage limits and may be required to pay the difference out of pocket. When selecting rental reimbursement coverage limits, it’s important to consider the cost of the rental car you plan to rent.

In most cases, yes, you can choose any rental car company. Amica has partnerships with Hertz and Enterprise, which can simplify the rental process.

Yes, there are limits. These include the daily rental rate limit and the maximum payout limit. You’ll be responsible for any rental costs exceeding these limits. Additionally, expenses like gas, toll costs and rental company insurance are generally not covered.

Your policy has specific limits for rental reimbursement coverage. If you need to extend your rental period, you may be responsible for additional costs. If you’re not at fault, you may be able to recover the additional expense from the at-fault party.

You may not need rental car insurance if your personal auto policy covers rentals, or your credit card offers coverage. However, it can be a good idea if you want to avoid paying a deductible or increased rates on your own policy, don’t have insurance or credit card coverage, or are traveling to a location where your personal policy doesn’t apply. Always check your existing coverage before deciding.

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