Rental Reimbursement Coverage

Yes, AAA offers discounts on rental cars from Hertz, Budget, Thrifty, and Dollar Car Rental. The exact amount of a AAA rental car discount depends on factors such as the type of car and the length of the rental period, but AAA customers can save up to 20%. In order to get a discount, you will need to provide the rental car company with your AAA policy number.

AAA Rental Car Discounts

Can I Use AAA's Insurance for My Rental Car?

If you have liability, comprehensive, or collision coverage on your AAA policy, they will transfer to your rental car. Your rental car will have the same coverage limits as your personal car. As long as the car you're renting is of similar value to your own, you can probably skip the rental company's coverage. You'll also want to pass on rental insurance at the counter if you plan to use a credit card as secondary coverage.

You need some form of insurance to drive a rental car, but you only need to buy extra car insurance from the rental car company if you don't have personal auto insurance or you're traveling internationally. Standard car insurance policies usually extend to rental cars, so most drivers are already covered. Many credit cards also provide insurance against damage to the rental car itself.

You Might Need to Buy Rental Car Insurance If You:

• Don't have a personal car insurance policy.
• Have a personal car insurance policy but your limits are low.
• Are traveling internationally and your personal insurance won't cover you.
• Are traveling for business and your personal insurance won't cover you.
• Don't want to pay your normal deductible or see your premium increase if you file a claim.
• Don't want to pay fees that your normal insurance won't cover, like loss-of-use charges.
• Are renting a car for longer than your insurance or credit card will cover you.
• Want to avoid filing a claim with your normal insurance company if you get into an accident with the rental car.

If your car rental is covered by your standard insurance and you're willing to pay your normal deductible, it's fine to go without separate rental car insurance. In this case, just be sure to ask your insurer about any exclusions before the rental begins.

It's also worth noting that even if your standard car insurance policy only includes liability coverage, you might be protected in other ways. For instance, some credit cards allow you to file claims for damage to a rental car, while homeowners, condo, or renters policies cover personal possessions.  

In other words, you should consider your current insurance policies before deciding if you need rental car insurance. Additionally, if you plan on using a credit card as coverage, be sure you know about any exclusions and actions you need to take for the coverage to apply, such as declining the rental car company's insurance options. For more details, check out WalletHub's complete guide to rental car insurance.

Yes. USAA offers rental car insurance. USAA rental car insurance is usually included in a driver's personal car insurance policy if the driver carries liability, comprehensive, or collision coverage and is driving in the U.S.

Each policy is unique, though, and there may be certain exclusions based on your specific situation. It's very important to confirm the details of your policy by calling customer service at 1 (800) 531-8722 before declining additional coverage at the rental counter.

USAA Rental Car Insurance Coverage Limits

The same USAA coverage limits that apply to your personal vehicle will also apply to a rental car. If you only carry liability insurance, USAA will pay for the other driver's injuries and property damage after an at-fault accident—but not physical damage to the rental. You need a full-coverage policy to have damage to the rental car covered by your insurer.

If you rent a car similar in value to your personal vehicle, you probably have enough insurance. But if your personal vehicle is a 15-year-old sedan and you decide to rent a 2022 luxury car, you should look into extra coverage. That's because the limits you've chosen for your personal policy may not be sufficient to cover damage to a more expensive rental car.

One option to make up for insufficient coverage when renting a car is to get a collision damage waiver (CDW) from the rental counter, which leaves the rental company responsible if the car is damaged, vandalized, or stolen. In addition to a CDW, rental car companies offer a few other types of insurance if you don't have enough coverage with your USAA policy. These include supplemental liability protection, personal accident insurance, and personal effects coverage.

USAA Rental Car Reimbursement

USAA also offers rental car reimbursement, which helps pay for the cost of a rental car while your personal vehicle is being repaired for a covered claim. If you add rental reimbursement to your policy, your insurance company will pay a fixed amount per day toward the cost of your rental, up to a maximum per-claim limit.

For example, if you choose $25 per day/$600 per loss as your rental reimbursement limits, USAA will pay up to $25 per day, but no more than $600 per claim for your rental. Rental reimbursement coverage costs between $2 and $15 per month, on average, but you'll need to call customer service to get a personalized quote and add this coverage to your policy.

The insurance offered by the rental company often duplicates coverage drivers already have through health, life, and auto insurance. You may also have rental insurance from your credit card company, which is nullified if you purchase the rental company's coverage.

Progressive rental car insurance is included in your personal car insurance policy, and a rental car has the same coverage with the same limits as your personal car. If you only have liability coverage, your insurance will pay for the other driver's injuries and property damage in an at-fault accident. You need comprehensive and collision coverage on your personal car for insurance to pay for property damage to the rental.

When Progressive Rental Car Insurance Is Not Enough

If you rent a car similar in value to your personal vehicle, you probably have enough insurance. But if you decide to rent a luxury car and usually drive an old clunker, you might want extra coverage. You can get a collision damage waiver (CDW) from the rental company, which leaves them responsible if the car is damaged or stolen. You may have rental insurance from your credit card company, too, if you decline the rental company's waiver.

Other Types of Insurance to Consider When Renting a Car

In addition to a CDW, rental car companies offer a few other types of insurance if you don't have enough coverage with your Progressive policy. These include supplemental liability protection, personal accident insurance, and personal effects coverage. The insurance offered by the rental company often duplicates coverage drivers already have through health, life, and auto insurance.

Each policy is unique, though, and there may be certain exclusions based on your specific situation. It's important to confirm the details of your policy by calling customer service at 1-888-671-4405 before declining additional coverage at the rental counter.

Progressive Rental Car Reimbursement

Progressive also offers rental car reimbursement, which helps pay for a rental car while your vehicle is being repaired for a covered claim. Progressive will typically pay between $30 and $60 per day, for up to 30 days, toward the cost of your rental. You can find out how much this optional coverage will cost and add it to your policy using your policy number online, or by calling customer service.

No, you do not need insurance to rent a car because rental companies have their own insurance. Rental car companies usually provide minimum liability coverage only, so if you don't have personal insurance, you'll probably want to purchase extra rental car insurance through the rental company. If your personal car is insured and you pay for your rental with a credit card, you can probably skip the optional coverage offered at the rental counter.

Coverage Offered by Rental Car Companies

You don't have to purchase all of these coverage types to be protected while driving your rental. But minimum liability insurance carried by the rental car company isn't enough protection if you get into an accident.

When You Don't Need The Rental Company's Insurance

Before you buy the rental company's insurance, you should consider what coverage you may already have through your personal car insurance. The coverage limits and deductibles you have on your personal vehicle typically still apply to rentals, as long as you're renting for personal use. Many major credit cards also offer coverage for rental cars if you pay with your card and decline the collision damage waiver offered by the rental company.

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.

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.

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.

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 subrogation.

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.

USAA rental reimbursement pays for the cost of a rental car after the policyholder's vehicle is damaged by a covered cause, such as an accident. Rental car reimbursement insurance from USAA usually costs less than $10 per month, and drivers can select coverage limits per day and per claim, which vary based on the state and the type of vehicle rented. This coverage does not apply to rental vehicles used while the car is undergoing routine maintenance, and drivers typically need collision and comprehensive coverage to be eligible.

Here's how USAA rental reimbursement works:

1. You add rental reimbursement coverage to a USAA car insurance policy that includes collision and comprehensive coverage.
2. The rental reimbursement coverage kicks in when you file a collision or comprehensive claim.
3. If you rent your car from Enterprise, USAA will be billed directly.
4. Otherwise, you'll pay for the rental yourself and be reimbursed later.

In general, rental reimbursement coverage is worth it if you think you are likely going to be in a car accident and need a rental car within the next few years. If not, then you likely won't get much from the coverage, even though it's relatively cheap. To learn more, check out WalletHub's guide to rental reimbursement insurance.

Geico rental reimbursement pays for the cost of a rental car after the policyholder's vehicle is damaged by a covered cause, such as an accident. Rental car reimbursement insurance from Geico usually costs less than $10 per month, and drivers can purchase a limit of up to $50 per day and up to $1,350 per claim. This coverage does not apply to rental vehicles used while the car is undergoing routine maintenance, and drivers typically need collision and comprehensive coverage to be eligible.

Here's how Geico rental reimbursement works:

1. You add rental reimbursement coverage to a Geico car insurance policy that includes collision and comprehensive coverage.
2. The rental reimbursement coverage kicks in when you file a collision or comprehensive claim.
3. If you rent your car from Enterprise, Geico will be billed directly.
4. Otherwise, you'll pay for the rental yourself and be reimbursed later.

In general, rental reimbursement coverage is worth it if you think you are likely going to be in a car accident and need a rental car within the next few years. If not, then you likely won't get much from the coverage, even though it's relatively cheap. To learn more, check out WalletHub's guide to rental reimbursement insurance.