Rental Reimbursement coverage is an optional feature you can choose to add to your personal auto insurance policy. It helps you pay for a transportation (typically a rental car) when your vehicle is in the shop being repaired as the result of a covered loss.

You must have a covered loss for rental reimbursement to kick in.

Rental reimbursement coverage comes with a lot of confusion sometimes. Here are some commonly asked questions I’ve heard over the years.

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Does rental reimbursement pay for me to rent a car to go on vacation?

No. Sometimes there is confusion around what rental reimbursement offers. I’ve had clients call and ask, “insurance is gonna pay for me to rent a car to drive to the mountains for vacation right?”

Insurance is designed to attempt to keep your life as normal as possible along during a covered loss. If you just want to rent a car for fun, you need to pay for it.

Does rental reimbursement provide me with full coverage on a rented vehicle?

No. Your liability insurance provides you with liability while driving a rental car. If you have full coverage, your deductible will apply to the rental car.*

*Always check with your agent or provider for the rules in your state or on their policy. Some policies limit which size of vehicles your full coverage extends to. Some coverages vary by company and state.

Do I need full coverage to get rental reimbursement coverage on my auto policy?

You typically need full coverage on your vehicle in order to qualify for rental reimbursement coverage.

Is rental reimbursement required in Florida?

No. rental reimbursement is an optional coverage.

Does rental reimbursement coverage pay for a rental car while my car is broken down?

No. Auto insurance policies do not cover mechanical failure.

Is there a limit to how long rental reimbursement will pay for a rental car?

Usually your coverage will have two numbers. Something like $40/$1000 or $50/1500.

The first number is the maximum amount your coverage will pay for a rental car per day.

The second number is the maximum amount the insurance company will pay per loss. So, yes, there are limits to how long your coverage will pay.

How much does rental reimbursement cost to add to my policy?

Rental reimbursement cost varies per policy and company. From my experience with Indiana and Florida auto insurance, it is one of the cheapest options on a full coverage auto insurance policy. Rental reimbursement often runs around an additional $5-10/month.

Do I need rental reimbursement on my auto policy?

If you have multiple vehicles and can afford to be without one while it’s in the shop for an extended period of time, you may not need rental reimbursement.

If you depend on the use of your vehicle every day and you can’t afford to lose it for a week or two, rental reimbursement might be a good option for you.

If you have any additional questions about your Florida auto insurance policy, get in touch with me.

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