Question

Will insurance pay for a rental car during repairs?  

Yes, but only if your car insurance includes rental reimbursement coverage.  

Rental reimbursement is an add-on coverage that pays the cost of the rented car while your car is under repair due to accidents. The amount you can claim is usually capped in terms of dollars or a percentage of the actual rental cost.  

What is the upper limit for rental reimbursement?  

The coverage limit for rental reimbursement is not the same for all. It varies depending on your car, the state you belong to, etc. On average, the daily rental cost for a regular car is $30 per day.  

How long will insurance cover rental car reimbursement during repairs?   

Typically, the rental reimbursement coverage is effective for about 30 days. Some insurers tend to offer coverage for a longer time. Generally, it ranges between 30 and 60 days. The days up to which the coverage is available are mentioned in your car insurance document. Remember, the cover kicks in only if your car is under repair due to a covered accident.   

In locations with lower costs for rental cars, the insurer tends to provide an extension in terms of covered days.  

Rental reimbursement during service work  

The rental usually doesn’t cover cars in service work. Since a car service is not related to a claimed accident, such claims from the insured are likely to be rejected.