Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. Through her years working in th...

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Reviewed by Melanie Musson
Published Insurance Expert Melanie Musson

UPDATED: Apr 13, 2021

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Just What's Essential

  • Rental car reimbursement is usually a perk for policyholders with full coverage car insurance
  • You won’t have a deductible for rental car reimbursement
  • It costs $2 to $15 per month to add rental car reimbursement to your policy

Rental car reimbursement can put you back on the road while your vehicle is being repaired. However, rental reimbursement isn’t available for your liability insurance or minimal high-risk car insurance.

So how do you buy rental car reimbursement? Read through our guide to learn all the essential details about rental insurance and how much it costs.

Rental car reimbursement isn’t required, but you can find the coverage you need by entering your ZIP code in the free online quote tool above and compare the best companies near you.

What is rental car reimbursement?

Rental car reimbursement is a perk that comes with your car insurance policy that pays up to a specified limit toward a rental car while your vehicle is being repaired.

If you need a car, you’ll need to go to a vehicle rental shop. Rental reimbursement compensates you for the inconvenience.

However, rental insurance coverage has limits. For example, some companies provide a $30 refund per day (up to 30 days).

Limits vary by company and location. Always double-check with your car insurance company to make sure.

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How does rental car reimbursement work?

Your liability car insurance won’t cover the cost of rentals. But, no-fault drivers can have their rentals covered by the at-fault party’s car insurance provider.

If you’re at fault, collision insurance will take care of your repairs. While your car is getting fixed, use your rental car reimbursement coverage and rent a vehicle within your car insurance company’s conditions.

Your auto insurance provider should refund you the money you spent on the rental.

How much does rental car reimbursement cost per month?

Rental car reimbursement rates add about $2 to $15 to your monthly premium. When you shop for car insurance quotes, you won’t find rental car reimbursement quotes specifically.

However, affordable rental car reimbursement is often attached to full coverage car insurance.

Does my insurance cover rental cars? The short answer is no. Rental car agencies have established a type of commercial insurance on the vehicles you rent.

Are deductibles included in rental car reimbursements?

The answer is no. Your deductible is connected to collision and comprehensive claims, and your rental car reimbursement won’t include deductibles.

So who pays the deductible? According to the Anidjar & Levine Law Firm, you have to pay the deductible for a collision claim even if you’re not at fault.

Your deductible only covers the repairs to begin on your vehicle. The at-fault party’s auto insurance company will provide a refund to your provider.

Any rental reimbursement expenses that your company paid back to you will be charged to the at-fault driver’s company.

How much does it cost to rent a car?

Car rental prices vary by state and vehicle. Here’s an example of how much car rentals cost by a major city and car type.

American Family vs. Liberty Mutual Average Monthly Rates Based on Driving Record
ViolationAmerican Family Average RateLiberty Mutual Average Rate
At-fault Accident - Less than $1000 in damages.$82.50$176
At-fault Accident - More than $1000 in damage$146.92$231.33
One DUI/DWI$154.75$348.50
Reckless Driving Ticket$154.75$288.25
One Speeding Ticket$105.83$172.33
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Don’t let the prices discourage you. Car insurance companies are reasonable.

Most auto insurance providers are networked with rental car agencies and provide a rental car that fits your policy’s requirements.

Why do you need rental car reimbursement?

Rental car reimbursement can help you recover from unexpected out-of-pocket costs if you need a rental right away.

Also, it’s a convenient perk that comes in handy when you have no vehicle to transport you to work or other general commutes.

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Rental Car Reimbursement: The Bottom Line

Rental reimbursement is a practical coverage option that all drivers should have if it’s in their budget. If you think you’re paying too much for car insurance, shop around for a more affordable car insurance policy.

Why stop at rental car reimbursement? Compare the best companies by using our free comparison tool below.