If my car breaks down, will insurance cover a rental?

Being without a car is a hassle, but your car insurance may not cover a rental. It all depends on why your vehicle is in the shop and what car insurance coverages you have in place.

If my car breaks down, will insurance cover a rental? Unfortunately, your car insurance coverages won’t kick in if your car breaks down. However, they will help if you’ve been in an accident or your vehicle has been damaged.

Rental car reimbursement coverage pays for a rental car if yours is in the shop for a covered claim. But, you will most likely have to carry full coverage to add reimbursement coverage.

Since rates and coverages vary widely by company, shop around to find exactly what you need. Then, compare multiple companies for the best coverage with the lowest rates available for you.

Keep reading to learn more about when your car insurance will cover a rental car and how to save on full coverage insurance.

Does car insurance cover rental cars?

Does my insurance cover rental cars if my car breaks down? Unfortunately, car insurance doesn’t cover repairs or a rental car while your vehicle is in the shop due to a breakdown. However, car insurance may pay for a rental car if your vehicle is damaged and you have the proper coverages.

If another driver caused the accident, their car insurance should provide a rental car while yours is repaired. On the other hand, if you cause the accident, collision coverage and rental car reimbursement coverages need to be in place.

Comprehensive coverage kicks in if your car is damaged from something other than an accident. But, again, you also need rental reimbursement coverage to pay for a vehicle to use.

Keep in mind rental car reimbursement coverage will have a limit. For example, you may be allowed to rent a car for $50 a day for 30 days. In most cases, you will pay for the rental, and then the car insurance company will pay you back.

How much is rental car reimbursement?

Rental reimbursement coverage is fairly inexpensive. However, most car insurance companies require you to carry full coverage insurance to add rental reimbursement.

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Full coverage combines liability, collision, and comprehensive coverages. Most states require drivers to carry liability coverage but don’t require many other coverages.

Liability covers property damage and bodily injury to others if you cause an accident. However, this type of coverage offers no protection for you or your vehicle.

Collision covers damages to your vehicle from an accident. Whether you hit another car or a tree, collision kicks in.

On the other hand, comprehensive insurance covers damages unrelated to an accident. Coverage includes theft, vandalism, fire, falling debris, and acts of nature, such as floods, hail, or tornados.

Full coverage car insurance is more expensive than liability coverage because it offers more protection. However, it might surprise you how little more coverage costs.

This table shows average rates based on coverage type from top car insurance companies.

Average Annual Car Insurance Rates by Driving History

While most states require liability-only car insurance, it’s the cheapest option because it offers the least coverage.

How much more is full coverage than liability?

Although full coverage is around $30 a month more, it keeps you from high out-of-pocket costs. Remember, liability-only coverage doesn’t pay for any damages to your vehicle.

When does car insurance not cover rental cars?

As we’ve already discussed, car insurance won’t always pay for a rental car. Rental reimbursement coverage only works for repairs from a covered claim.

Car insurance won’t cover a rental car if:

• Your car breaks down. Car insurance won’t pay for a rental if your vehicle is in the shop for a mechanical failure or routine maintenance.
• You go on vacation. If you want to rent a car for a trip, your car insurance won’t cover it, and you’ll have to pay for it yourself.
• You don’t have rental reimbursement coverage. If you are at fault in an accident or your car is otherwise damaged, the rental coverage must already be in place for your car insurance to pay for a vehicle.

Add rental reimbursement coverage if you think you would have to rent a car if yours is in the shop. It’s not very expensive and saves you from paying for a rental yourself.

However, if you have more than one vehicle or can borrow a car, you can skip the coverage.

How can you save on full coverage car insurance?

Because full coverage car insurance is expensive, take advantage of easy ways to lower your rates.

Car insurance discounts significantly lower insurance rates. In addition to low-mileage discounts and usage-based discounts, most car insurance companies offer various ways to save. Drivers can take advantage of discounts ranging from multi-policy discounts to discounts based on your car’s safety features.

This table shows car insurance discounts from top companies. The savings amount is listed if it is available.

Car Insurance Discounts

Most drivers are eligible for more than one discount, so bundle them for the most savings.

In addition, consider raising your deductibles. Although out-of-pocket costs are higher, rates are lower.

Also, comparison shop to find the coverage you need at the lowest rate possible. For example, most companies offer rental reimbursement coverage, so compare multiple companies to find your best deal.

Case Studies: Car Insurance and Rental Coverage

Below are fictional case studies based on real-world scenarios that illustrate the relationship between car insurance and rental coverage. Please note that these case studies are for illustrative purposes only and do not reflect specific insurance policies or companies.

Case Study 1: John’s Car Breakdown

John experienced a car breakdown while driving to work. He contacted his insurance company to inquire about coverage for a rental car. Unfortunately, his car insurance policy did not provide rental reimbursement coverage for breakdowns. Since his car breakdown was not caused by an accident or covered claim, John had to arrange and pay for the rental car out of pocket.

Case Study 2: Sarah’s Accident

Sarah was involved in a car accident that caused significant damage to her vehicle. She reported the accident to her insurance company and asked about rental coverage. Fortunately, Sarah had rental reimbursement coverage included in her policy. As a result, her insurance company covered the cost of a rental car while her damaged vehicle was being repaired.

Case Study 3: Mark’s Comprehensive Damage

Mark’s car was severely damaged by a hailstorm. He contacted his insurance company to file a claim and asked about rental car coverage. Since Mark had comprehensive coverage as part of his car insurance policy, his insurance company provided rental reimbursement coverage. Mark was able to rent a car while his vehicle was undergoing repairs due to the hail damage.

Case Study 4: Emily’s Fault Accident

Emily was at fault in a car accident that caused damage to her own vehicle. She contacted her insurance company to inquire about rental coverage. Since Emily had collision coverage and rental reimbursement coverage, her insurance company arranged and covered the cost of a rental car for the duration of the repair process.

Please remember that the availability and specifics of rental car coverage vary depending on the insurance company and policy. It’s crucial to review your own insurance policy or contact your insurance provider to understand the coverage options available to you.

If My Car Breaks Down, Will Insurance Cover A Rental: The Bottom Line

Your car insurance won’t cover a rental car if your car breaks down. However, a rental car is covered if your vehicle is being repaired for a covered claim and you have the proper coverages.

In addition to rental reimbursement coverage, full-coverage insurance may be required. Although full coverage is more expensive, it also offers much more protection.

Drivers can save money on full-coverage car insurance by taking advantage of discounts and raising deductibles.

Remember that every company offers different rates and coverages. So shop around to find full coverage and rental reimbursement coverage with the lowest rates for you.