Does Insurance Cover a Rental Car While Your Car Is at the Body Shop?

When your vehicle is in the body shop after an accident, you still need a way to get around. Whether your auto insurance covers a rental car depends on your specific policy and the circumstances of the accident.

Rental Reimbursement Coverage

This is an optional add-on to your auto insurance policy that pays for a rental car while your vehicle is being repaired due to a covered loss. Key details:

• Daily limit — Most policies provide $30-$50 per day, though some offer up to $75-$100/day.
• Maximum duration — Typically 30 days, though some policies extend to 45 or 60 days.
• Total maximum — Some policies cap the total reimbursement (e.g., $900-$1,500 total regardless of daily or duration limits).
• Trigger — Coverage activates when your vehicle is in the shop for a covered repair (collision or comprehensive claim).

If you do not have rental reimbursement coverage on your policy, you would pay for a rental car out of pocket. This coverage is relatively inexpensive — typically $3-$10 per month — and well worth adding to your policy, especially if you depend on your vehicle daily.

If another driver caused the accident, their liability insurance should cover your rental car expenses regardless of whether you have rental reimbursement on your own policy. Here is how it works:

• File against their insurance — You (or your body shop) contact the at-fault driver's insurance company and request a rental car as part of your property damage claim.
• Direct billing — In many cases, the at-fault driver's insurer will set up direct billing with the rental car company so you do not have to pay out of pocket.
• Reasonable duration — The at-fault insurer will pay for a rental during the "reasonable repair period." If the repair takes longer due to parts delays or supplement approvals, you may need to negotiate the rental extension with the insurer.

Important: Do not delay getting your vehicle to the shop. If you wait weeks before starting repairs, the at-fault insurer may argue that you are not entitled to rental coverage during the delay period. Start the repair process promptly to ensure continuous rental coverage.

Compare rental coverage limits, repair time, and your daily driving needs before the work begins.

If you are using insurance rental reimbursement, these tips help you get the most from your coverage:

• Communicate with your body shop — Let us know you are on a rental so we can prioritize your repair and help you stay within your coverage period.
• Return the rental promptly — Once your repair is complete and you pick up your vehicle, return the rental the same day. Coverage ends when your vehicle is ready, not when you return the rental.