Rental Car Reimbursement: Your Questions Answered

Editorial Team

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From errands and commuting to road trips and pleasure drives, people love the freedom of getting behind the wheel and driving wherever they want — especially as travel picks up again. In fact, business and leisure travel in 2022 is expected to outpace 2021, according to the World Travel & Tourism Council.

With added time on the road comes the risk of accidents and associated vehicle repairs that disrupt your routine. Feeling stuck when your car is out of service is frustrating, but rental reimbursement can help.

What is rental reimbursement coverage?

Rental reimbursement coverage is an optional add-on to auto insurance that helps cover the cost of vehicle rental if your insured car is in an accident and needs repair. This allows you to continue to drive as normal with a rental car while your vehicle is fixed.

“Customers are back to prioritizing their vehicles, rather than putting off repairs and maintenance until after pandemic restrictions have been lifted. With the average repair taking two weeks, and rising due to supply chain and worker shortages, finding a replacement ride right now can be inconvenient and expensive,” said Mary Mahoney, vice president, Replacement and Leisure Division at Enterprise Holdings. “Even with a variety of transportation options, renting a car while your personal vehicle is out for service is still the most convenient solution — and with rental reimbursement coverage, it’s also cost-effective.”

Do I already have rental reimbursement coverage?

Because rental car reimbursement is optional, many people believe they have it but don’t. It’s important to ask your insurance company if this coverage is active on your current policy.

In a proprietary study of the general population, Enterprise found 70% of those with collision coverage thought they also carried rental reimbursement coverage. The insurance industry reports the true number of people carrying rental reimbursement coverage to be much lower — closer to 50%. With a 20 percentage point gap, that leaves many people unprepared at the time of an accident.

Is rental reimbursement coverage expensive?

One year of rental reimbursement coverage typically costs about the same as renting a vehicle for one day. This averages $2 to $15 a month, depending on the level of coverage on your policy.

Keep in mind, insurance companies sometimes have different names for rental coverage. They may refer to it as rental reimbursement, loss of use or rental coverage. Whatever it is called, it provides the benefits of reimbursement for the cost of a rental car.

When can rental reimbursement coverage be added?

Rental coverage is widely available from most major auto insurance providers. You don’t need to wait until renewal to add this coverage; it can be added at any time — and the new year is a great time to revisit your existing policy.

Learn more about rental reimbursement at, and be sure to ask your insurance provider if you have this important feature on your policy today.


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