Insurance typically pays for a rental car during repairs for up to 30 days, but the exact time depends on your policy, the repair timeline, and the type of coverage you have. The rental period can be shorter or longer depending on your insurance limits and how long it takes to fix your vehicle after an accident.
This guide will help you understand:
- What kind of insurance covers rental cars
- How long you can use a rental during repairs
- What limits apply to rental reimbursement
- What happens if repairs take longer than expected
- Frequently asked questions about rental car coverage
Whether you’re already dealing with an accident or just want to be prepared, here’s what you need to know.
What Insurance Covers a Rental Car After an Accident?
The type of coverage that helps pay for a rental car while your car is being repaired is called rental reimbursement coverage, also known as transportation expense coverage.
It is optional coverage that you must add to your auto insurance policy. It is not automatically included, even if you have full coverage.
Rental Reimbursement Coverage:
- Covers rental car costs while your car is in the shop after a covered accident
- Usually pays a daily rate (e.g., $30 per day) and has a maximum limit (e.g., up to $900 total)
- Only applies when your car is in for repairs after an insured loss
If you were not at fault, the other driver’s insurance may pay for your rental instead.
How Long Will Insurance Cover the Rental Car?
Most rental reimbursement policies pay for a rental car for up to 30 days. However, the coverage may end sooner if:
- Your car is repaired in fewer than 30 days
- You reach your maximum coverage limit (e.g., $900 total)
- The claim is closed early or the car is declared a total loss
Example Rental Coverage:
- $30/day limit, up to 30 days
- Maximum payout: $900
So if your repairs take 10 days, your insurer will cover up to $300. If repairs take 35 days, you may be on your own after day 30 unless the company extends your coverage.
Factors That Impact How Long You Get a Rental Car
Several things affect how long insurance will continue to pay for your rental during repairs.
1. Policy Limits
Rental reimbursement is subject to daily and total limits, such as $30 per day and up to $900 total.
2. Repair Time
Your coverage usually lasts only while the car is in the shop. If repairs take longer than expected due to parts or labor delays, ask your adjuster for an extension.
3. Vehicle Status
If your car is declared a total loss, rental coverage usually ends a few days after the settlement is offered, not when you replace your vehicle.
4. At-Fault vs. Not-At-Fault
If you’re not at fault, the other driver’s insurance may pay for your rental. There may still be limits on how long that coverage applies.
What Happens If Repairs Take Longer Than Expected?
Repairs can sometimes go beyond the original timeline due to parts shortages, labor delays, or hidden damage. If this happens:
- Contact your claims adjuster to request more time
- Ask your body shop for written updates on the delay
- Some insurers may approve additional days depending on the situation
However, once your policy limit or time limit is reached, you will need to pay out of pocket for any additional rental days.
Can I Extend My Rental Car Coverage?
You can’t usually extend your coverage unless your policy allows it or your adjuster approves an exception. Here are your options:
- Ask the adjuster for a short extension with a valid reason
- Switch to a lower-cost rental (e.g., economy class) to stretch your daily limit
- Use your own funds for extra days not covered by insurance
If you expect delays, talk to your insurer early to avoid surprise costs.
What If the Other Driver Is at Fault?
If someone else caused the accident and their insurer accepts liability, they may pay for your rental car while your vehicle is repaired. In this case:
- There may still be a limit (e.g., 30 days or until repairs are done)
- You must use a rental provider approved by their insurer
- You may need to cover any upgrades or extra fees yourself
If their insurance delays payment or denies fault, use your own rental reimbursement coverage and your insurer will seek repayment later.
What Is Not Covered by Rental Reimbursement?
Even if you have rental reimbursement, it doesn’t cover:
- Non-covered events (e.g., mechanical failure or maintenance)
- Repairs not related to a covered accident
- Rental upgrades (e.g., luxury cars)
- Gas, tolls, or security deposits
Always read your policy details or ask your insurer what’s included.
Rental Reimbursement Coverage Limits: What to Expect
| Daily Limit | Maximum Coverage | Number of Days |
| $30 | $900 | 30 days |
| $40 | $1,200 | 30 days |
| $50 | $1,500 | 30 days |
If your daily rental cost exceeds your coverage amount, you must pay the difference.
How to Use Rental Reimbursement Coverage (Step-by-Step)
Step 1: File Your Claim
Report the accident and begin the claim process with your insurance company.
Step 2: Confirm Rental Coverage
Ask your insurer if you have rental reimbursement and what limits apply.
Step 3: Get a Rental Authorization
Your insurer will often work directly with a rental agency (like Enterprise or Hertz) and set up billing.
Step 4: Pick Up the Rental
Choose a vehicle that meets the daily rate limit in your policy.
Step 5: Return When Repairs Are Done
Return the rental car once your vehicle is fixed or your policy limit is reached.
Do You Need Rental Reimbursement Coverage?
It’s a good idea if:
- You can’t go without a car during repairs
- You don’t have access to another vehicle
- You want peace of mind in case of an accident
Rental reimbursement typically costs less than $10 per month and can save hundreds after an accident.
Frequently Asked Questions
Most policies pay for up to 30 days, or until repairs are complete, whichever comes first. Some may have shorter limits.
Once your policy’s day or dollar limit is reached, you must pay for additional rental days yourself.
No. You must choose a car that fits within your daily dollar limit. If you upgrade, you pay the difference.
No. Rental reimbursement only applies to accidents or insured damage, not regular breakdowns or maintenance issues.
Yes, but only if you have rental reimbursement coverage. Submit receipts to your insurer for approved reimbursement.
Final Thoughts
Insurance will typically pay for a rental car for up to 30 days while your vehicle is being repaired, as long as you have rental reimbursement coverage and the damage is part of a covered claim. Your daily limit and total payout amount will determine how long and what type of rental you can use.
To avoid surprises, review your policy now and consider adding rental coverage if you don’t already have it. If you ever need to file a claim, having this coverage can help keep you on the road without added stress or expense.
For affordable car insurance that includes rental reimbursement and more, Alias Insurance helps you compare quotes from top-rated providers. Get protected today and drive with peace of mind.
