Auto Insurance

Rental Reimbursement

Optional add-on that pays for a rental car while your vehicle is being repaired after a covered claim.

Last reviewed: May 2026 · Editorial methodology

Definition

Rental reimbursement coverage pays for a temporary rental vehicle while your car is in the shop following a covered collision or comprehensive claim. Coverage is written as a daily limit and per-claim maximum — for example, $40/day up to $1,200 per claim. The daily limit is critical: rental car rates in 2025–2026 commonly exceed $60–$100/day, so a $30/day reimbursement leaves a significant gap. This coverage is inexpensive (often $5–$20 per year) and well worth adding. Note: rental reimbursement does not apply if your car is in the shop for mechanical repairs unrelated to a covered claim.

Where this term matters

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Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

Towing & Labor CoverageOptional auto add-on that pays for roadside assistance: towing, flat tires, dead batteries, lockouts.Collision CoverageOptional auto coverage that pays to repair your vehicle after a crash, regardless of fault.Comprehensive CoverageOptional auto coverage for non-collision damage: theft, fire, hail, vandalism, animal strikes.DeductibleThe out-of-pocket amount you pay before insurance starts covering a claim or health expense.

Related guides

Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

Cover Forge USA Editorial Team

Editorial Lead

This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.

Reviewed June 2026

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