Car rental and travel expenses coverage

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.

What does this coverage include?

Most car rental and travel expenses coverage includes some combination of the following benefits:

Rental car reimbursement

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.

Public transportation or rideshare alternatives

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.

Emergency travel expenses

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.

When can you use car rental coverage?

You can usually use car rental insurance coverage when:

• Your car was damaged in a covered incident such as a collision or vandalism
• Your car is being repaired and is unsafe or illegal to drive
• The repair shop verifies how long your car will be unavailable
• You have rental reimbursement coverage or travel expenses coverage included in your policy

This coverage does not apply to:

• Routine vehicle maintenance or repairs
• Mechanical issues like engine failure or brake problems
• Times when you simply need a rental car for convenience or a vacation

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.

What are the limits and conditions?

Policies usually include the following limits:

Daily limit

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.

Total limit

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.

What kind of rental car is covered?

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:

• GPS or satellite radio
• Rental agency collision damage waivers or loss damage waivers
• Add-ons like supplemental liability protection or personal accident insurance

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.

Does rental coverage make sense for you?

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:

• You drive daily and depend on your car to get to work or school
• You live in an area without reliable public transportation
• You want peace of mind knowing you won’t pay out of pocket for a rental
• You travel often and could benefit from emergency travel coverage

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.

Common questions and misconceptions

Here are a few things people often get confused about:

• Does auto insurance cover rental cars by default?
  Not always. Rental reimbursement is usually an optional feature or part of a broader auto insurance package.
• Does this cover rentals for vacations or moving?
  No. It only applies after a covered insurance claim, not for personal trips.
• Will I need to file a separate claim?
  Usually, it’s part of your main claim for the accident. But keep your receipts in case your insurer asks for documentation.
• What if the other driver caused the accident?
  Their insurance may eventually pay for your rental, but having your own rental car coverage keeps you from waiting for their claim to be processed.

Why rental and travel expenses coverage matters

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.

In summary

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.