Car rental and travel expenses coverage helps you stay mobile when your vehicle can’t be driven after a covered accident. If your auto insurance policy includes this add-on, it can help pay for a rental car, public transportation, or emergency travel costs while your car is being repaired.
This coverage doesn’t apply to regular car troubles like breakdowns, mechanical failures, or wear and tear. It only comes into play after a covered loss — usually from an accident or another event included in your collision or comprehensive auto insurance.
It’s sometimes referred to as rental reimbursement coverage or rental vehicle coverage, and it’s designed to keep you moving while your car is in the shop.
Most car rental and travel expenses coverage includes some combination of the following benefits:
If your car is in the shop for accident repairs, your policy may reimburse you for the cost of a rental car. This typically comes with a daily rental limit (like $40 per day) and a total claim limit (such as $800 per incident). This is one of the most common auto insurance add-ons that can save you money after a crash.
If a rental car isn’t practical or available, your coverage may include other forms of transportation like buses, taxis, or rideshare services. Some policies offer flexible options depending on what is available in your area.
If your car becomes undriveable far from home — for example, during a road trip — some policies include trip interruption coverage. This can pay for hotel stays, meals, and travel expenses to get you home safely. It’s a helpful layer of protection, especially for frequent travelers or long-distance drivers.
You can usually use car rental insurance coverage when:
This coverage does not apply to:
It’s important to note that if someone else caused the accident, their insurance provider might be responsible for your rental — but that claim process can take time. Having your own coverage helps avoid delays.
Policies usually include the following limits:
This is the maximum amount your insurance company will pay per day for a rental vehicle. If the rental car costs more than the limit, you’re responsible for the difference.
This is the overall amount your insurance carrier will reimburse per claim. For example, if your limit is $800 and your daily rate is $40, the policy will cover up to 20 days of a rental.
Time limits may also apply, and coverage may stop after a certain number of days even if your vehicle still isn’t fixed.
Policies may also include conditions like using an approved rental agency or requiring that you pay upfront and submit receipts.
Most rental reimbursement policies cover the cost of a standard or economy vehicle. Some insurers allow you to upgrade at your own expense. Policies rarely cover luxury vehicles, sports cars, or large SUVs unless you pay the difference.
They also typically don’t cover extras like:
If you pay for the rental with a credit card, you may already have some form of credit card rental insurance included as a perk — but this varies by provider and card type.
Adding car rental coverage to your auto policy is usually inexpensive — often just a few dollars a month — and it can save you hundreds if you ever need it. Here’s when it’s especially helpful:
Let’s say your car is in the shop for seven days after an accident, and a rental costs $50 per day. That’s $350 in unexpected expenses. With rental reimbursement, your auto insurance provider covers those costs up to the policy limits.
Here are a few things people often get confused about:
Being in an accident is stressful enough. Losing your transportation makes it even harder. Whether it’s getting to work, picking up your kids, or simply running errands, not having a car for several days can throw off your entire routine.
Rental car insurance coverage gives you breathing room. It helps you avoid disruption and keeps your life moving while repairs are underway.
Your insurance carrier is there to support you through unexpected moments. This coverage guarantees they’re also helping with the practical stuff — like how you’ll get from point A to point B while your car’s in the shop.
Car rental and travel expenses coverage is an affordable, useful addition to many auto insurance policies. It’s one of those things you hope you never need — but you’ll be glad to have if something goes wrong.
At VIU by HUB, we work with trusted insurance carriers to make sure your policy includes the right protections. Whether you’re comparing plans or have questions about rental reimbursement coverage, our advisors are here to help you understand what’s right for your life.
