Who is responsible for insurance on a rental car?

Insurance will pay for a rental car for up to 30 days after an accident, in most cases, as long as a customer has rental reimbursement coverage. The 30 days of rental car payments that insurance companies typically cover are meant to give enough time for car repairs to be completed or for a customer to find a new car.... read full answer

An exception to the general 30-day rule is if the accident was another driver’s fault. In this case, the at-fault driver’s insurance company will pay for the other driver’s rental vehicle for a reasonable length of time, which may be more than 30 days, while their car is being repaired or replaced. It can take longer than usual to get a rental car covered by another driver’s insurance provider, as the company will need extra time to verify the claim before authorizing any payments.

Rental Car Reimbursement Rules & Limits

Different insurance companies have their own rules regarding how long they will pay for a rental car after a customer has an accident. A single insurer may even have different rules based on policy type. So, if your insurance provider does cover a rental car, the coverage period might not be exactly 30 days. Some insurers will put daily/per-claim limits on how much they will pay, too. For example, if a policy has rental reimbursement limits of $30 per day/$900 per claim, the insurance company will pay up to $30 per day or $900 per claim for a rental car after an accident. In that case, if a customer knows the repairs on a damaged car will take several weeks, they should consider renting a vehicle with a cheaper daily rate to keep the rental for a longer period of time.

Finally, it’s important to keep in mind that rental reimbursement will only pay for the cost of the rental car, and not the security deposit, gas, supplemental coverage options or other charges. Customers should also check with their insurer to see if they will have to be reimbursed by the insurance company or if the rental company can bill the insurer directly.

No, if your car breaks down, insurance will not cover a rental car unless you have rental reimbursement coverage and the breakdown was the result of something covered by comprehensive or collision insurance. If the breakdown was the result of an underlying mechanical issue, your rental coverage will not apply.

Even if you don’t have rental reimbursement coverage with your car insurance company, you may be able to get it through an extended warranty. Extended warranties are service contracts that cover repair costs if your vehicle suffers a major mechanical failure. In addition to the breakdown coverage, extended warranty providers often include rental reimbursement coverage in their contracts. Extended warranties are usually not available from insurance companies, so you’ll need to purchase one from either a third-party company or your car’s manufacturer.

To learn more, check out WalletHub’s guides to rental reimbursement coverage and extended car warranties.

Yes, insurance covers rental car reimbursement if you’re not at fault in an accident and your vehicle is damaged. While your car is being repaired, you can file a claim with the at-fault driver’s property damage liability insurance or use your own rental car reimbursement coverage if fault is not immediately clear. If you rent the car through your policy, your insurance company will recoup the cost of the claim from the other insurer through ... read full answersubrogation.

If you’re filing a claim with the at-fault driver’s insurance, keep in mind that they’re only responsible for covering reasonable expenses. This means that you’ll be covered for a car that’s a similar value to the one that was damaged, and you will only be reimbursed for a certain amount of time. In most cases, the insurer will pay for the rental car until your old vehicle is fixed, unless you delay the repair process.

If it’s clear that the other driver was at fault, then their insurer may pay for the rental directly. But if the process of determining fault takes longer, you may need to pay for the rental yourself and get reimbursed by the at-fault driver’s insurer once the insurance adjuster concludes their investigation.

To learn more, check out WalletHub’s guide to rental reimbursement coverage.