Henry Armstrong
if my car breaks down will insurance cover a rental? A rental car is unlikely to be covered by your insurance policy if your car breaks down.
Renting a car out of pocket is typically more expensive than rental car reimbursement coverage, even after one covered loss.
However, rental car reimbursement coverage is usually relatively inexpensive.
The coverage is typically recommended by insurance experts because you will typically save money if your car is damaged in an insured event.
if my car breaks down will insurance cover a rental?
A rental car is unlikely to be covered by your insurance policy if your car breaks down.
Renting a car is typically covered only if your car is being repaired due to damage incurred in an accident or some other covered event, mechanical breakdowns are usually not covered by insurance.
In the event of a collision or other covered events, such as theft or fire, auto insurance may help with the cost of repairs.
Repairs for routine wear and tear or mechanical failures are usually not covered by an auto insurance policy. Find out how and when auto insurance coverage can help you during accidents and engine failure.
If your vehicle is damaged in an accident caused by someone else’s negligence, collision coverage helps to pay for repairs. In the event that your car is damaged by something other than an accident, the comprehensive coverage kicks in.
The comprehensive coverage protects you against:
- Theft
- Vandalism
- Damage caused by falling objects, like tree branches
- colliding with animals
- Floods, hail and fires
You may be eligible for rental reimbursement coverage if any of these damages occur to your vehicle and cause you to put it in the shop; the coverage will cover rental costs up to the limits of your policy.
How does rental reimbursement work?
Rent reimbursement coverage only applies if you have purchased an insurance policy that includes it or if you have purchased it as an additional endorsement, file a claim, and have it approved.
As part of the insurance coverage for your car, you may be able to rent a vehicle for a certain dollar amount per day while your vehicle is being repaired due to a covered loss.
Typically, you can pay the difference out of pocket if you rent a car that costs more than the amount covered by your insurance policy.
When you are covered by an insurance company, they will usually pay the rental company directly.
If not, you must pay up front, and the insurance company reimburses you up to your policy limits.
As long as another driver caused the loss, the rental car should be covered by their liability coverage.
No matter how many vehicles you insure on one policy, you will receive rental reimbursement.
In cases where you own two cars and only one is covered by rental reimbursement, your rental car will not be covered if you file a claim under the car with no rental reimbursement coverage.
Depending on the company, policy, and the amount of time you are without your car, the amount of rental money covered and length of time you are responsible for varies.
Make sure you know your limits and stay in touch with your claims adjuster in order to know what you are responsible for.
Is car insurance coverage for rental reimbursement included?
Most insurance providers do not include rental reimbursement coverage in their standard policies, but they offer it as optional coverage.
It is generally recommended by many insurance professionals that drivers add it to their policies since it does not have much of an impact on the cost.
Rental reimbursement or loss of use coverage comes with limits, just like all auto insurance coverage types.
This will usually appear in your insurance policy as a per-day and per-incident cap. For instance, you can get $30 per day up to $900 total.
If you would like to better understand and differentiate rental reimbursement and loss of use coverage, it is helpful to compare them with other similar-sounding or similar-functioning coverage types.
| Coverage type | Meaning |
| Rental reimbursement or loss of use coverage | The rental car coverage comes into play if you experience damage to your vehicle that falls under your comprehensive coverage, such as an accident. |
| Rental car insurance | If your vehicle experiences a mechanical breakdown in its transmission or drivetrain, you can choose this type of insurance. In the event that you decide to purchase it, you may want to consider its inclusions before buying. Rental car reimbursement is not included in mechanical breakdown coverage. |
| Mechanical breakdown coverage | If mechanical breakdowns occur to your car’s internal parts, like its transmission or drivetrain, then you may opt to purchase this kind of insurance. Since it does not cover general maintenance, you may want to consider its inclusions before purchasing. The mechanical breakdown policy does not include rental reimbursement coverage. |
WILL AUTO INSURANCE COVER REPAIRS IF MY CAR BREAKS DOWN?
According to the National Association of Insurance Commissioners, maintenance, such as an oil change, is typically not covered by auto insurance.
Your car insurance may not cover repair or replacement costs if your vehicle breaks down due to routine maintenance, mechanical failure or blown engine.
Even if your car runs smoothly, you might have to pay out of pocket for routine maintenance or for a mechanic if it breaks down.
IN THE EVENT THAT MY CAR IS DAMAGED IN AN ACCIDENT, WHAT SHOULD I DO?
If your car is damaged in an accident with another vehicle or an object, such as a fence or tree, collision coverage can pay for the repairs.
The coverage also typically offers assistance if you’re in a single-car accident – such as if you roll over. According to the Insurance Information Institute, it may also cover damage caused by potholes.
If you suffer damage to your car’s body or suffer mechanical issues as a result of a collision, this coverage will likely help cover the cost of repairs.
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