After an accident, one of the first questions drivers ask is: “Will my insurance cover a rental car while my vehicle is being repaired?” The answer depends on your insurance policy, who was at fault, and the type of claim being filed. Understanding how rental reimbursement works—and what the typical process looks like—can save you stress and unexpected expenses.

This guide breaks down what most drivers can expect when navigating rental coverage after a collision.

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Does Your Insurance Cover a Rental Car?

Many drivers assume rental cars automatically come with their auto insurance, but the truth is that rental coverage is optional on most policies. It’s usually listed as Rental Reimbursement Coverage or Transportation Expense Coverage.

Here’s what to know:

If You Have Rental Reimbursement Coverage

• Your insurance will typically pay a daily rate toward a rental car (often $20–$50 per day).
• Coverage lasts until repairs are completed—or until the dollar limit is reached.
• You can generally choose any rental company, but many shops work with trusted providers for convenience.

If You Don’t Have Rental Coverage

You may still get a rental at no cost if the other driver is at fault and their insurance accepts liability. Their insurer will usually:

• Approve a rental car through a partnered agency
• Cover the cost until your car is repaired
• Set rental limits similar to those on a standard policy

If liability is still being investigated, you may need to pay upfront and get reimbursed later.

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What Happens When the Other Driver Is At Fault?

When the other driver is found responsible:

1. Their insurance pays for your rental car.
   This is typically handled through the claims adjuster.
2. You will receive rental authorization.
   The insurer may book the rental for you directly or ask you to reserve it yourself and send them the bill.
3. Coverage usually lasts until repairs are complete.
   If delays occur that are outside your control (waiting on parts, insurance supplements, etc.), adjusters typically extend the rental period.

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What If You’re At Fault?

If you caused the accident:

• Your insurance will only cover a rental if you purchased rental reimbursement coverage beforehand.
• Without it, you’ll need to pay out-of-pocket.
• You can choose any rental provider, but working with the shop’s preferred rental partner often makes the process easier.

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What the Rental Process Typically Looks Like

While every insurance company handles claims slightly differently, most rental experiences follow a predictable pattern.

1. File the Claim

This starts the approval process for repairs and rental authorization.

2. Wait for Insurance Approval

Depending on the situation, approval may come from:

• Your insurance company
• The at-fault driver’s insurer

The approval usually includes:

• A rental reservation
• Daily coverage limits
• Length of authorized rental period

3. Pick Up Your Rental

Many collision repair shops partner with rental agencies to streamline the process.
For example, our shop has Enterprise Rent-A-Car vehicles available onsite, making it easier to transition from your damaged car into a rental immediately after drop-off.

4. Drive the Rental While Repairs Are Completed

Your rental period generally matches the repair timeline. Delays caused by supplemental damage, part backorders, or insurance reviews can sometimes require an extension.

5. Return the Rental When Repairs Are Finished

Once the shop notifies you that repairs are complete, you return the rental vehicle—either at the shop (if onsite rentals are available) or directly to the rental agency.

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What Does Rental Reimbursement Typically Cover?

While policies vary, most cover:

• The cost of a standard-sized vehicle
• A set daily dollar amount (e.g., $30/day)
• A maximum total payout (e.g., $900)

Upgrades—like luxury vehicles or large SUVs—often require an out-of-pocket difference.

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Tips for Managing Your Rental Car After a Collision

• Check your policy before you need it. Knowing your coverage helps you avoid surprises.
• Stay in communication with your adjuster. If repairs take longer than expected, they may extend your rental authorization.
• Return the rental promptly once repairs are complete. Overages beyond the coverage period are paid by the customer.
• Ask the repair shop if they work with a rental partner. Onsite rentals often save time and reduce back-and-forth transportation.

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Your Next Steps for Rental Coverage

Insurance coverage for rental cars after an accident is common—but not automatic. Whether the cost is covered depends on your policy and who caused the accident. The process is usually straightforward, and having a collision repair shop, like Purnell Body Shop, that offers onsite Enterprise Rent-A-Car rentals can make things even smoother. We offer convenient rentals for a less stressful experience. Reach out today to get started.