Does My Car Insurance Cover Rental Cars
A basic car insurance policy doesnt include rental cars since liability coverage only pays for bodily injuries and property damage to others. However, full coverage, including collision and comprehensive coverages, pays for damages to your vehicle from various causes.
You can add rental car coverage if you have full coverage, but it doesnt come with it. Insurance covers rental cars if you have specific coverage like rental car reimbursement on your policy.
Below are examples of when rental reimbursement coverage kicks in during car repairs:
- Acts of nature, such as floods, tornadoes, and hurricanes
- Falling debris, such as hail or tree limbs
- Fire or smoke damage
- Animal damage, such as hitting a deer or squirrels damaging your car
If someone else causes the accident, their car insurance may pay for your rental car. However, youll have to wait for their insurer to approve the rental and be subject to their limits.
Adding rental car coverage to your policy costs extra, but its generally less than renting a car for one day. Including rental car reimbursement on your policy is an inexpensive way to ensure you always have a ride without waiting on another insurance company.
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Will My Credit Card Insure My Rental Car
Many credit cards, especially travel cards, have a damage waiver that pays for damage to your rental car while you drive it, as well as trip interruption coverage. However, these waivers don’t provide coverage for liability or your own medical bills, so make sure you’re fully protected before you drive.
Where Can You File A Claim For A Car Rental After Your Car Accident
You have more than one avenue for obtaining a car rental while your vehicle is being repaired or you are negotiating a settlement with the insurance company. You have the following options to be paid for a car rental:
- Negligent drivers insurance company. As part of the compensation that the negligent driver is responsible for paying you, you are entitled to your car rental fees while your vehicle is being repaired or replaced. His insurance company would pay this cost as part your settlement.
- Your own insurance company. You are not required to purchase car rental insurance under Georgia law. However, if you purchased this type of insurance, you could file a claim for your car rental costs, whether or not the negligent driver had insurance that would pay them.
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Car Insurance Policies That Offer Hire Car Cover
Budget Direct Comprehensive Car Insurance*
- Up to $1,000 cover for rental car after theft
- Cover for rental car after a no-fault accident
- Option to add cover for a rental car after an at-fault accident
If you are involved in a car accident that is not your fault and you have this comprehensive car insurance policy, Budget Direct will arrange a hire car for you to use, until your car is repaired or your claim is paid. Youâll also be covered for up to $1,000 worth of hire car costs, should your car be stolen. Plus, if you want to make sure you are covered in the event that an accident is your fault, you can add âaccident car hireâ cover to your policy. This will cover the cost of a hire car for up to 14 days.
Qantas Comprehensive Car Insurance *
- Rental car cover following theft
- Cover for rental car following a no-fault accident
- Option to add âaccident hire carâ cover
Stella Comprehensive Car Insurance*
- Rental car cover following theft
- Rental car cover following a not-at-fault accident
- Option to add cover for at-fault accidents
Am I Entitled To A Car Rental While My Vehicle Is Being Repaired Or Replaced After My Auto Wreck
When a negligent driver causes your accident, one of your immediate concernsafter receiving medical treatmentis getting your vehicle repaired or replaced if the insurance company totals your vehicle. If you are like most people, you rely on your automobile on a daily basis and cannot afford to be without it even for a day. Fortunately, you have options for obtaining a rental car after a car accident.
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How Do I Know If I Have Rental Car Coverage
The first step to see if you already have rental car coverage is to review your policy details. This often outlines the coverage you have in case of different types of qualifying insurance events. Some policies also outline the specific vehicles you can rent if your car is in the shop for covered repairs. You can also contact your insurance company to help you better understand if you already have rental car coverage. Doing so will also allow you to discuss this coverage if its not already incorporated into your policy.
Will You Have To Pay A Deposit
Even though the negligent drivers or your insurance company will be paying for your car rental, the rental company could require you to have a credit card on record before they will release the car to you. If you do not have a credit card, you will need to contact the car rental company to see if they will accept a deposit using a debit card or any other requirement you can meet.
The car rental company may try to convince you to purchase additional insurance. If you have collision insurance, this would cover any damage to the rental vehicle and purchasing additional insurance is unnecessary and costly.
If you need to file a property damage claim, you may be surprised at how complicated it can be and how the insurance company may delay paying your claim. The experienced legal team at Brauns Law Accident Injury Lawyers, PC has helped many clients with all types of insurance claims after a car accident. Start an online chat or to schedule your free consultation to get your questions answered and learn how we can help you.
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Is There A Time Limit On How Long Insurance Pays For A Rental Car
Yes, your car insurance company wont pay for a rental indefinitely. However, each insurer sets its own rules for rental cars. Typically, your policy only offers a set amount of money each day for a set amount of time.
For example, your car insurance company may pay $30 a day for up to 30 days to rent a car after a covered loss. After 30 days, youll have to pay for a rental car yourself.
Car Insurance That Covers Your Vehicle Itself
Liability car insurance covers damage to other people and their vehicles when you cause an accident. In all but two states, drivers are required to have the minimum amount of liability insurance, but the actual amount will vary by state. But there are types of coverage that pay for damage to your own vehicle.
Comprehensive and collision coverage are both optional, but will cover repairs to the body of your vehicle and are often paired together. Comp coverage pays for damage inflicted by non-driving perils such as theft, vandalism, animals, fire, and extreme weather conditions. And as the name suggests, collision insurance covers physical damage to your vehicle when it collides with another car or object, no matter who was at fault.
If your car is in the shop for damage that was covered by your comp and collision coverage, then your rental reimbursement will kick in and pay for the cost of a rental car.
Depending on your carrier, roadside assistance, another additional coverage option, can cover the costs of towing your car to an auto repair shop or delivering fuel or a new battery in emergency situations. If you have collision coverage and comprehensive coverage, then your policy may include roadside assistance but if it does not, its fairly easy and affordable to add.
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On This Page
- Car insurance only pays for a rental car if you have rental car reimbursement on your policy
- Rental car reimbursement is an add-on policy that costs extra
- You arent covered if your car is undergoing routine maintenance or if you use the rental car for pleasure
Hire A Car Accident Attorney Today
If you dont have rental car coverage as part of your insurance policy, the best way to ensure that you dont get stuck with the cost of renting a vehicle while your car is in the shop is to hire a car accident lawyer. If you have been in an accident where another party was at fault, renting a vehicle is likely just one of many costs that you will face.
A car accident attorney can help create and execute a plan for holding the liable party responsible. That way, you wont be stuck with the expenses you cant afford. Your attorney will take over every aspect of your legal case. This way, you can feel confident that your finances are in good hands and turn your attention to recovering from your injuries.
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When You Have To Pay For A Rental Car Yourself
If your car breaks down and you dont have mechanical breakdown insurance, youll have to foot the bill for a rental car. Likewise, if youre at fault for an accident, your collision coverage probably wont cover one. After all, thats why insurance companies offer rental car reimbursement coverage. And of course, when youre renting a car while on vacation, youll have to cover the costs yourself.
What If I Have Caused Damage To Another Car Or Property When Using A Rental Car
The extent of your liability and whether the rental car company will cover your liability will depend on the wording of the Rental Car Agreement you have entered.
You need to read the Rental Car Agreement carefully, as some or all liability may be covered and some or all may not.
If the rental car company does not cover your liability, then you will be personally liable and you will have to deal with the third party yourself. You should read our Ive had a car accident and Im uninsured fact sheet for further help or try our Motor Vehicle Accident Problem Solver.
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How Much Car Insurance Do I Need
State laws mandate minimum levels of bodily injury liability and property damage liability coverages. However, most minimum requirements dont provide enough coverage to protect your assets. Financial experts often recommend carrying at least $100,000 in bodily injury coverage per person, $300,000 in bodily injury coverage per accident, and $100,000 in property damage coverage per accident.
Your state may also require you to carry other types of coverages, such as medical payments, personal injury protection, and uninsured/underinsured motorist coverages. If you finance or lease an automobile, you may also need to purchase collision and comprehensive coverages.
Does Car Insurance Include Rental Reimbursement Coverage
Rental reimbursement coverage is not standard in many car insurance policies, but many insurance providers offer it as add-on coverage. Many insurance professionals recommend that drivers consider adding it as its price usually does not impact the cost of your car insurance policy by very much.
Like all auto insurance coverage types, rental reimbursement or loss of use coverage comes with limits. Usually, you will see these listed in your policy as a per-day and per-incident cap. You might get up to $30 a day and up to $900 total, for example.
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What Is Not Covered
Rental Reimbursement does not cover the costs of gas, mileage or additional coverage, or any security deposit required by the rental company.
Most rental car providers will ask you to purchase additional insurance from them to cover the rental car. Keep in mind, if you have comprehensive and collision coverage on your GEICO policy, they will usually transfer to your rental car while your vehicle’s accident damage is being repaired. You should decide for yourself if you want to purchase insurance coverage from the rental provider. Your GEICO liability examiner can provide more information and assist you with this decision.
In most states, you can rent a car of a comparable size to your own vehicle. However, if the daily rate of your rental car is more than your daily limit, you will have to pay the difference. Also, if your vehicle repairs are going to take several weeks, you may want to rent a car with a lower daily rate so your rental reimbursement limit will last longer.
Commonwealth of Virginia
* In Virginia, the term Rental Reimbursement is known as “Transportation Expense.”
This material is intended for general information only. It does not expand coverage beyond the policy contract. Please refer to your policy contract for any specific information or questions on applicability of coverage.
How Do I Know If My Rental Car Is Covered Under My Policy
If you are renting a car from a personal property insurer , the PPI will likely cover the rental. If you are renting from an automobile club or a company that does not provide PPI coverage, the rental company may be responsible for the damages to your vehicle. Make sure to ask about coverage when you make your reservation. If you have collision or comprehensive insurance, it may still cover rental car damage if the rental company is not responsible.
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Does Car Insurance Cover Rental Cars For Repairs
If your car breaks down and needs repairs, you may wonder if your insurance company will cover the cost of a rental car. Many insurance policies have rental car reimbursements for repairs resulting from a covered loss of use or damage to your vehicle. Some companies also offer rental coverage at an additional cost, so you can relax knowing that if your vehicle is in for repairs, you can get a rental car. Keep reading to learn more about how insurance companies can help you pay for a rental car while your vehicle is in the shop.
What Is Rental Reimbursement Coverage
Will insurance pay for a rental car during repairs? If you have rental car coverage, your insurance pays for a rental while your vehicle gets repaired from a covered claim. However, many insurance companies require full coverage to add rental reimbursement.
Each car insurance company decides how it deals with rental car coverage. Some companies pay the rental car company directly, and some require you to pay, then they reimburse you.
This table shows how some top insurance companies handle rental car coverage.
Rental car reimbursement coverage doesnt usually come with a standard insurance policy. Instead, its an added feature that increases your rates, and not all insurers offer the coverage.
In addition, rental reimbursement coverage does have limits. For example, your policy may pay up to $30 daily for a rental for up to 30 days. So if you choose a more expensive vehicle or need the car for longer than a month, youll have to pay any additional fees for your rental out of pocket.
Some insurers also allow you to use public transportation, taxis, and rideshares with the coverage. Check with your car insurance company to see if you have rental car reimbursement coverage and how to use it.
Does insurance cover the rental car when a car is in the shop? Again, there isnt a cut-and-dry answer it depends on your car insurance. Many car insurance policies extend to rental cars but read your policy to determine if you need extra coverage.
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Can I Get A Vehicle That Is Comparable To My Car
Once your claim for a car rental has been approved, many insurance companies will work with a car rental company to provide you with a car rental. You may need to pick up the car or it may be delivered directly to you. The insurance company is trying to keep its costs as low as possible, so it will probably offer you the cheapest, smallest vehicle available.
Do you have a right to a vehicle that is comparable to yours? That depends on which insurance company is paying for it. If you filed your claim with the negligent drivers insurance company, it would be responsible for providing you with a vehicle that is similar to the one you were driving. Your own insurance company is also responsible for providing you with a comparable vehicle, but only up to the limits of what they are required to pay under your policy. For example, if your policy only requires your insurance company to pay $30 per day, this may not be sufficient to pay for a higher-end model.
Who Pays For The Rental Car While My Car Is In The Repair Shop In Georgia
If you were in a car accident in Georgia, chances are your vehicle will need repair or even replacement. This can leave you wondering how to get around without your main mode of transportation. Thankfully, you can obtain a rental car while your own vehicle is being fixed . If the accident was not your fault, you should not have to pay for the costs of your rental car.