Let’s talk about a little something in your Auto insurance policy that doesn’t get enough love: Rental Reimbursement coverage (also known as RR). Sounds fancy, right? It’s not. But it can be a lifesaver if your car decides to throw in the towel after an accident.

So what is Rental Reimbursement coverage, and more importantly, what isn’t it? Buckle up – let’s break it down in everyday, real-life language.

Rental Reimbursement (RR) is an optional coverage you can add to your Auto policy – but only if you already carry both Collision and Comprehensive coverage. So, if you see dollar amounts listed next to those on your insurance declaration page, you can add RR. Yay!

Here’s the gist: If your car is in the shop after a covered accident (say, someone rear-ended you or you hit a deer on the freeway), RR helps you pay for temporary transportation. This could mean a rental car, rideshare (like Uber or Lyft), a taxi, or even public transportation. Your insurance company will reimburse you for those expenses – up to a set limit – while your car is being repaired.

Notice the key word here? “Reimbursement.” That means you pay upfront, and your insurance company pays you back later (after approving the claim, of course).

You might see something like 50/30 on your policy. This is insurance-speak for:

• $50 per day,
• for a maximum of 30 days.

So, if you rent a car that costs $45/day while yours is being fixed, you are good. If you go for something fancy at $80/day – well, you’ll be on the hook for the difference.

Think of it as your insurance helping you stay mobile – within a budget. This is not the time to try out that fully loaded SUV with massaging seats and moonroof (unless you’re okay paying the overage).

Let’s clear up a few common misconceptions because RR is not the Swiss Army knife of Auto insurance.

🚫 It won’t cover rentals for routine maintenance.

If your car is in the shop for an oil change, new tires, or a “mystery rattle” that turns out to be an old soda can under the seat – RR won’t kick in. No accident, no reimbursement.

🚫 It’s not for vacations or fun road trips.

Sorry, but if you rent a convertible Mustang in Hawaii, RR won’t pay for it. Even if it was the last one on the lot and came with a free beach towel. If there’s no accident involved, RR stays on the bench.

🚫 It’s not the same as insurance on a rental car.

This one trips people up all the time. Rental Reimbursement is coverage that helps you pay for a rental while your own car is being repaired. It is not the same as insurance coverage for a rental car when you’re traveling or renting by choice.

However, and this is important – some insurance companies do extend the same coverage you carry on your own car to a rental vehicle. So, if you already have Liability, Collision, and Comprehensive coverage, those may also apply to your rental car. But always (and I mean always) double-check with your agent before you decline that rental counter coverage and drive off with the confidence of a racecar driver.

Honestly? If you can swing the few extra bucks a month, yes.

Imagine this: Your car gets hit in a parking lot. The bumper is toast, the repair shop is backed up for 2 weeks, and you still need to get to work, pick up kids, go to the grocery store, etc. Having RR means you won’t have to stress about how you’ll get around or eat PB&Js because you blew your weekly budget on Uber.

Reimbursement for your transportation expenses when your car is being repaired after a covered accident. Rental car, taxi, rideshare, or public transit – all covered (within the limit).

• Not for regular maintenance
• Not for vacation rentals
• It’s not the same as rental car insurance (though your existing coverage might extend to rentals – check with your agent!)

You must have Collision and Comprehensive coverage on your policy to qualify.

If your policy says 50/30, you’ll get reimbursed up to $50/day for up to 30 days. Just save those receipts!

Rental Reimbursement won’t make your car repair wait any shorter. It won’t give you a luxury ride to replace your dented Honda Civic. But it will make your life a whole lot easier when the unexpected happens – without blowing your budget on taxis or favors from friends.

So, if your policy doesn’t already include it, give your insurance agent or broker a quick call. Ask them to walk you through your current coverage and help you decide if RR is a good fit for your needs.

Because let’s be honest – life’s already expensive enough without having to Uber your way through it.