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  • Jeff Joseph

Rental Car Reimbursement: Make Sure You're Covered

Businessman sitting at a table with his hands covering a small red toy car.

Rental Car Reimbursement: Make Sure You're Covered

Rental car reimbursement is included in many auto insurance policies and covers the cost of a rental while your car is in the shop for repair due to damage from an accident where you were at fault. Your insurance company pays you a certain dollar amount per day for car rental or a set amount for 30 days while your vehicle is being repaired. You are reimbursed for your rental when there is a qualified claim and after the claim has been approved. But you must already have rental car reimbursement in place on your policy prior to the accident for there to be coverage.

The Current Dilemma

Today, the auto industry is facing an issue regarding rental cars. Historically, rental reimbursement limits range between $30 - $50/day, with the majority being at $30/day. In 2022 with rental cars being in short supply and the cost to rent a vehicle increasing dramatically over the past year, $30/day is no longer enough to rent a car. In many cases, even $40 or $50 isn’t enough.

Man in a suit at a rental car company paying with a credit card.

What to Do

First, you need to understand what’s covered and not covered with regards to rental reimbursement within your current auto insurance policy. A call or visit with your insurance agent can help you determine if you’ll have enough reimbursement coverage. You’ll need to know what your allotted amount is before you rent a car, so you know if you’ll have to pay out of pocket. If your current auto insurance policy does not cover rental reimbursement, you will need to purchase it as an add-on.


Contact your Mitchell-Joseph Insurance agent to determine how much car rental reimbursement coverage you currently have and whether or not it’s enough for today’s auto industry climate. If your reimbursement limit falls short, it would be wise to consider maximizing this important coverage to give you peace of mind.


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