The Insurance Guide.Independent · plan year 2026
Learn: glossary

Rental reimbursement coverage

Updated for plan year 2026

In plain terms

Rental reimbursement (also called transportation expense coverage) pays a daily amount toward a rental car while your own vehicle is in the shop for a covered loss. It has a per-day limit and a per-claim cap, and it only applies when the repair follows a claim your policy covers, not routine maintenance.

A plain example

Your car needs two weeks of repairs after a covered collision. With rental reimbursement at $40/day up to $1,200, your policy covers the rental up to those limits while you wait, instead of you paying out of pocket.

Why it matters

Without it, a covered accident can still leave you paying for weeks of a rental car out of pocket. For a small addition to the premium, it removes one of the most common surprise costs after a crash.

A common point of confusion

It's not the same as the coverage that pays for damage to a rental car you rent on a trip. That comes from your existing collision and comprehensive. Rental reimbursement only pays for a substitute car while yours is being repaired.

Related terms

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