Glossary

Rental reimbursement

Optional coverage that pays for a rental car or other transportation while your car is repaired after a covered claim, up to daily and total limits.

Also called: rental car coverage, rental coverage, transportation expense coverage

Rental reimbursement is optional coverage that pays for a rental car, rideshare trips or public transit while your car is out of service because of a claim covered by your own collision or comprehensive coverage. It is usually inexpensive and is often added as an endorsement.

It pays up to a daily limit and a per-claim maximum, such as $40 a day up to $1,200. Example: your car is in the shop for 22 days after a covered crash and the rental costs $55 a day. With a $40/$1,200 limit, the coverage pays $40 × 22 = $880 and you pay the remaining $330 (hypothetical figures). Coverage usually ends when repairs are finished, or a few days after the insurer pays a total loss settlement. Some policies include a small amount of transportation coverage for theft even without the add-on.

It does not apply to routine maintenance or mechanical breakdowns. If another driver was at fault, their liability insurer should pay for your loss of use, but rental reimbursement gets you a car now while fault is sorted out. With repairs taking longer than they used to, choose a daily limit that matches local rental prices and a maximum that would cover a long repair. See rental reimbursement coverage and repair delays, parts shortages and running out of rental coverage.

Last reviewed October 4, 2026

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Related terms

Loss of use Compensation for not being able to use your car while it is repaired or replaced after a crash someone else caused, usually paid as a rental car. Collision coverage Pays to repair or replace your own car after it hits another vehicle or object, or rolls over, regardless of fault, minus your deductible. Comprehensive coverage Pays for damage to your car from causes other than a crash, such as theft, fire, hail, flood, falling objects, vandalism or hitting an animal. Endorsement A written amendment to an insurance policy that adds, removes or changes coverage, such as rideshare use, rental coverage or OEM parts. Total loss A car so badly damaged that repairs would cost more than it is worth, or more than a state threshold, so the insurer pays its value instead.

Related guides

Rental reimbursement coverage How rental reimbursement pays for a rental car while yours is repaired after a covered claim, the daily and total limits, and how much to buy. Repair delays, parts shortages and running out of rental coverage Why repairs drag on, how rental reimbursement limits run out, what the at-fault driver's insurer owes for loss of use, and what to do when rental days end. Hail, flood and storm damage: filing a comprehensive claim How comprehensive coverage handles hail, flood, wind and falling-tree damage, what to do before and after a storm, and why flooded cars are often totaled. What to do if your car is stolen The steps to take in the first hours after a car theft, how a comprehensive theft claim is settled, and what happens if the car turns up later. What you give up with the cheapest car insurance policy The cheapest car insurance quote usually saves money by cutting limits, coverages, policy features or service. Here is what to check before you buy it.

Related insurers

American National (Farm Family) Brookfield-owned property and casualty arm of Texas-founded American National, now rebranding as Farm Family; sells auto, farm and business coverage via agents. Georgia Farm Bureau Insurance Macon-based mutual set up by the Georgia Farm Bureau federation in the late 1950s; sells auto, home and farm coverage to members from offices in 158 counties. Horace Mann Springfield, Illinois insurer started by two teachers in 1945 that sells auto, home and life coverage to educators, with an Educator Advantage package.