Rental Car Coverage
Insurance protection that pays for the cost of a rental vehicle when your car is being repaired due to a covered claim or is stolen. This coverage is typically an optional add-on to your auto insurance policy that helps you maintain mobility during vehicle repairs.
Example
“After her car was damaged in a hailstorm, Maria's rental car coverage paid $35 per day for a temporary vehicle while her SUV was in the shop for three weeks.”
Memory Tip
Think 'Rental Relief' - when your car needs relief in the shop, rental coverage provides relief for your transportation needs.
Why It Matters
Without rental car coverage, you could face hundreds of dollars in out-of-pocket rental costs while your vehicle is being repaired. This coverage ensures you can continue working, running errands, and maintaining your daily routine even when your primary vehicle is unavailable.
Common Misconception
Many people assume rental car coverage automatically comes with their auto insurance or that their credit card rental coverage applies when their personal vehicle is being repaired. In reality, rental car coverage must be specifically added to your policy, and credit card coverage typically only applies to rentals for travel purposes.
In Practice
Sarah's car was rear-ended and needed $4,200 in repairs that would take 12 days to complete. Her rental car coverage had a $30 per day limit with a maximum of $900 total. She rented a compact car for $25 per day, so her insurance paid the full $300 cost ($25 × 12 days). Without this $48 annual coverage add-on, she would have paid the entire rental cost herself.
Etymology
The term combines 'rental' from the French 'rente' meaning income or payment, with 'coverage' from the Old French 'covrir' meaning to cover or protect.
Common Misspellings
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Related Terms
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