Add-on coverage clarity
Use the worksheets inside our policy pillar guide to compare rental limits, deductibles, and actual repair times.
Rental reimbursement (also called transportation expense) pays for a temporary vehicle while yours is repaired after a covered claim. It does not activate for routine maintenance or mechanical breakdowns. Because the coverage is optional, many drivers skip it until they are stranded. Here's how to decide if you need it and how to tailor the limits.
1. How the coverage works
- You must file a comprehensive or collision claim first.
- The adjuster authorizes rental coverage only for the reasonable repair timeline.
- You can rent through the insurer's preferred partners (direct billing) or pay out of pocket and submit receipts.
2. Choosing the right limit
Limits are typically written as "daily amount / maximum days" such as $40 per day up to 30 days. Use this method to pick the right level:
- Call your preferred rental agency and ask what it costs to rent a vehicle similar to yours.
- Multiply that rate by the average repair time in your area (usually 15-30 days).
- Select a limit that covers the full amount plus taxes and fees.
3. Rideshare and alternative transportation
Some carriers now allow you to use rental benefits for rideshare credits or public transit passes when rental fleets are unavailable. Ask your adjuster if these alternatives qualify so you can keep moving without waiting for a car.
4. Claim tips
- Report the claim immediately; the adjuster cannot approve a rental until liability and coverage are confirmed.
- Return the rental as soon as repairs are complete. Keeping it longer can shift the bill to you.
- Save every receipt, even if the insurer pays the rental company directly. Disputes are easier to resolve with documentation.
Bottom line: rental reimbursement costs only a few dollars per month but saves hundreds when an accident sidelines your car. Match the daily limit to the vehicle you actually drive and keep receipts so every dollar is reimbursed.