Accident Claim Lawyers
InsuranceUpdated September 2026

Rental reimbursement coverage

In plain English: rental reimbursement is an optional add-on to your own car policy that pays for a rental car, up to a daily and total limit, while your car is being repaired or replaced after a covered claim.

How the limits work

Your declarations page will show two numbers: a daily amount and a maximum per claim, or a maximum number of days. If the rental costs more than the daily limit, you pay the difference. Cover usually ends when repairs are finished, or a set number of days after the insurer offers to settle a total loss, whichever comes first. It normally applies only when the damage is covered by your collision or comprehensive cover, so it won't help with a breakdown.

When you need it and when you don't

If another driver was clearly at fault, their liability insurer should pay for a reasonable replacement car as part of your property damage claim. The catch is timing. The other insurer may take days or weeks to accept liability, and it won't pay for a rental until it does. Your own rental cover bridges that gap. Your insurer may then recover the cost from the at-fault driver's insurer.

Outside the US

  • UK: many policies include a courtesy car while repairs are done at an approved garage, often a small hatchback. For non-fault accidents, credit hire companies can provide a like-for-like car and claim the cost from the at-fault insurer, but check the agreement carefully, because you may be liable if the hire charges aren't recovered.
  • Canada: loss-of-use or transportation replacement endorsements serve a similar purpose. In Ontario, OPCF 20 is the common one.

Getting the most from it

  1. Ask your insurer for its preferred rental company. Direct billing avoids paying up front.
  2. Choose a car within your daily limit, or agree to pay the difference in writing.
  3. Get the repair shop to give a realistic timeline and keep in touch about delays.
  4. If your car is a total loss, find out the exact date rental cover stops.
  5. Keep every receipt if you pay yourself.
Delays you didn't cause

If repairs drag on because of parts shortages or an insurer's slow approval, ask in writing for the rental to be extended. Against an at-fault driver's insurer, your right to a replacement car generally lasts for the reasonable repair period, and unreasonable delays by the insurer shouldn't be your cost.

Example

Your policy pays up to 40 a day for 30 days. You rent a car at 55 a day for 18 days while your car is fixed. Your insurer pays 720 and you owe the rest, unless the at-fault driver's insurer accepts liability and pays the full reasonable cost.

Next: property damage claims · your declarations page · car accident claims explained.

Related terms

Claim NumberA claim number is the reference an insurance company gives your claim when it's opened.Collision CoverageCollision coverage is the part of a car insurance policy that pays to repair or replace your own vehicle after it hits another vehicle or an object, or rolls over, whoever caused the crash.Comprehensive CoverageIn the US and Canada, comprehensive coverage pays for damage to your own car caused by something other than a collision with another vehicle or object, such as theft, fire, a falling tree, hail, flood or hitting an animal.Coverage LimitA coverage limit is the maximum amount an insurance policy will pay for a particular type of loss.

General information, not legal or medical advice. Rules differ between US states, the UK and Canadian provinces, so check the law where your accident happened. How we write and check · Legal disclaimer