How Long Will Insurance Pay for Rental Car After an Accident?

Getting into a car accident is an absolute nightmare, and the situation can get from bad to worse when you discover that your car is severely damaged and needs a while to repair. If your car is your only source of transportation either for traveling to work or for your daily commute, it can get quite difficult to travel around.

But if you’ve rental reimbursement insurance, you can get another car on rent while your is out of commission at the repair shop. Depending on the severity of the damage, it might take a few days to even weeks to repair your car.

So, while your car is being repaired at the workshop, how long will insurance pay for the rental car? Most insurers pay for a rental car after an accident for up to 30 days, while there are others that provide coverage until your car is repaired.

Does Insurance Cover the Cost of Renting a Car After an Accident?

Yes, insurance does cover the cost of renting a car after an accident, but only if you have rental reimbursement insurance. With the rental reimbursement insurance, you can get compensation for renting a car while your one is being repaired at the repair shop.

If you want to ensure that your car rental expenses are covered by your auto insurance policy, it is essential to add the rental reimbursement coverage. However, as rental reimbursement insurance is an optional add-on car insurance coverage, you need to have the collision and comprehensive auto insurance to purchase it.

Typically, it can cost you $2 to $15 per month to purchase the rental reimbursement coverage, but the exact rate can mainly vary based on the coverage limit of your choice.

How Long Will Insurance Cover a Rental Car After an Accident?

On average it can take up to 2 to 3 weeks to repair a car after an accident. Based on this general estimate, most auto insurance companies pay for a rental car for 30 days after an accident.

However, this can widely vary depending on the severity of the damage. It can take your car a few days to several weeks to repair. There are some insurance companies that will pay for the car rental until your one gets repaired.

For example, if your insurer provides a daily coverage of $30 then you will have access to $900 coverage in 30 days. Here’s a clause though, if your car gets repaired in 15 days then insurer will pay the car rental company $450, just for the days you actually used it.

Typically, as most insurers provide coverage for rental cars for up to 30 days, if you need to use the rental car for more than 30 days then you need to pay for the additional days out of pocket. Although you can contact your insurer to request an extension, especially if the repair delays are outside of your control.

If you’re looking for a reliable auto insurance agency here in Michigan that provides rental car reimbursement coverage, consider exploring our insurance solutions. Apart from checking our services online, you can also visit our office in Flint, Saginaw and Mt Pleasant, MI.

What is Rental Car Reimbursement Insurance and How Does it Work?

Rental car imbursement insurance is a special optional type of add-on auto insurance coverage that you need to purchase with collision and comprehensive auto insurance. Rental car reimbursement insurance is also known as rental car coverage or transportation expense coverage.

You can only claim rental car reimbursement insurance coverage when your car gets damaged, not while getting your routine maintenance done. Once you acquire your rental car imbursement insurance, your insurer will pay your car rental expenses for 30 days, or the time that’s specified in your agreement.

If you were involved in an accident in which the other driver is at-fault, then it’s the other driver’s insurer that will compensate you after you file for rental reimbursement insurance through your insurer.

Typically, the renter car reimbursement insurance coverage is a temporary auto insurance coverage, but there are more such as usage-based insurance, non-owner car insurance, permissive use coverage among others.

Steps to Get a Rental Car After an Accident Using Your Insurance

If you have been involved in an accident which damaged your car to the point that it needs immediate repairing. However, it can take a few days to a month for your car to get repaired. As you use the car for commuting daily, you need a car to move around.

In this case, the best solution is to claim your rental car reimbursement insurance to rent a car until your car gets fixed. So, if you need to claim your rental car reimbursement insurance, please follow the steps as suggested here.

Obtain the Police Report

After any road accident, the police will arrive at the crime scene and investigate why and how the incident happened. Regardless of whoever is at-fault, it will be mentioned in the police report. So, that’s why it’s crucial to obtain the police report. If the other driver is at-fault, the police report will help you claim your insurance faster.

Contact Your Insurance Company

Once you’ve confirmed that your car is not drivable or needs repairs, the next step is to contact your auto insurance company as soon as possible. You can do this by calling their claims department, using their mobile app, or logging in to your account online.

When you speak with your insurer, let them know the details of the accident and confirm whether your policy includes rental car reimbursement coverage.

File an Insurance Claim

After informing your insurer, tell them that you would like to claim your rental car reimbursement insurance. Provide every essential detail including the police report. Once you’ve made the insurance claim, your insurer will verify your claim. If everything checks out, your insurer will pay the cost for rental car based on the insurance agreement.

Limitations of Rental Car Reimbursement Insurance

The rental car reimbursement insurance can help you quickly obtain a car on rent while yours is being repaired at the auto repair shop. Although it’s a great optional add-on auto insurance coverage, the rental car reimbursement insurance has some limitations as follows.

• 30 days coverage: It might take more than 30 days for your car to get repaired. So, after 30 days if your rental reimbursement insurance does not cover the cost of your rental car, or extends your coverage until your car gets fixed, then you will have to pay out of pocket or return it when the coverage ends.
• Security Deposit: You will have to pay the rental car company a significant amount as a security deposit which includes the car’s potential repair expenses, or other issues while using the rented car. You can either pay your insurer in cash, through bank transfer or allow the rental company to hold the required amount on your credit card. Once you return the car in good condition, the money held for the security deposit will be returned to you.
• Routine Maintenance: If your car is at the auto repair shop for routine maintenance then your rental car reimbursement insurance will not cover the rental car expenses. The main condition is you will only be compensated by this coverage when your car gets damaged in an accident and requires urgent repairing.
• Daily or Total Limit: Most rental reimbursement coverages have a daily limit of $30 to $60, and a total limit of $750, $900, or $1,500 depending on the coverage limit that you have purchased. Any amount that exceeds the limit will have to be covered by out-of-pocket expenses.
• Fuel Costs: You would need fuel to run the rented car, but this isn’t covered by your rental car reimbursement insurance. So, you will have to cover the expenses incurred for purchasing fuel while you’re driving the rented car.  
• Additional Charges: If the rental car company charges you an additional amount for repairing the car, it won’t be covered by the rental car reimbursement insurance.

The Bottom Line

Typically, rental car reimbursement coverage is a very useful add-on auto insurance coverage to quickly access a rental car. The biggest advantage is you immediately gain access to a rented car while your one is out of commission and is being repaired.

Although there are some limitations of this coverage, the benefits outweigh the costs of getting rental car reimbursement coverage.

In general, most insurers pay up to 30 days but it’s also possible to apply for extended coverage if your car needs more time to repair. So, to seamlessly manage a rented car, it is crucial for you to consider adding the rental car reimbursement coverage to your auto insurance policy.

If you’re interested in learning more or purchasing rental car reimbursement coverage you can contact us for a free quote and consultation with our auto insurance experts.

FAQ

How long will insurance pay for rental car?

It depends on your rental car insurance policy, while most insurers provide coverage for a rental car for up to 30 days, it may be extended if your car takes more time to repair. But there are some auto insurance companies that provide rental car insurance coverage until your car is repaired.  

Will my insurance company extend my rental car?

Most auto insurance companies do extend rental car reimbursement coverage, only if your car takes longer to repair due to accidental damage.  

What does rental reimbursement coverage cover?

Rental car reimbursement insurance covers the cost of renting a car while your one is being repaired at an auto repair shop from an auto insurance claim. This coverage won’t apply for routine maintenance, as it’s designed to specifically provide financial support while your car is damaged due to an accident and is being repaired.  

Is rental car reimbursement coverage worth it?

Yes, rental car imbursement coverage is worth it because after a car accident, your car may get damaged to the point that it needs immediate repairing. So, after claiming auto insurance, you can easily get a rented car that you can temporarily use for 30 days, or until your car gets repaired.