Rental reimbursement pays for the rental of a vehicle while it is being repaired after a covered accident, if it's not available for more than 24 hours. It does not cover regular maintenance costs or car rental services in circumstances unrelated to an incident. This is because your insurer knows that you won't have to pay much if you need to use the reimbursement for your rental car. If your car is destroyed in an accident, you have 30 days or the maximum number of days that your insurer sets for rental reimbursement coverage to replace your car.
The comprehensive and collision coverage of your personal auto insurance generally extends to rental vehicles if you purchased that coverage as part of your personal auto insurance package. Accidents can still affect your main auto insurance premium, and if you're taking advantage of the benefits of rental credit card insurance, you'll also need to consider the company's claim process. Nor will it reimburse you for renting a car while you are in the shop for mechanical problems or for routine maintenance. Rental reimbursement coverage pays a fixed daily amount for a rental car if the policyholder's car is being repaired due to damage covered by the auto policy.
It won't reimburse you if you need to rent the car while you're in the workshop for routine maintenance, mechanical problems, or other reasons that aren't covered by car insurance. You never know how expensive it can be to rent a car when you need it, and some insurers have agreements with certain rental agencies to help you get a better price on a loan. For example, if you have collision coverage, your rental car reimbursement guarantee would pay for a rental car after an accident so that you can repair it. Your car insurance policy will only cover a rental car if your insured vehicle suffers a covered loss.
If you don't want to rely on your own insurance policy and haven't booked the vehicle with one of the major credit cards with the benefits of car rental coverage, it's a good idea to take out insurance through the rental company. If you have comprehensive coverage and your car is stolen, you can also use the coverage of your rental car at that time. Rental reimbursement coverage is optional coverage that you can add to your auto insurance policy to help cover the cost of a rental car while yours is being repaired after a covered loss. Once you've accepted loss compensation from the insurance company and received payment for your claim, it's your responsibility to take that money and replace your car.
You'll also want to report the incident to the rental car agency and arrange for a replacement rental vehicle. Car rental coverage isn't included in your policy, and you'll generally need to have collision or full risk insurance in order to add it.
