Rental Car Coverage While Your Vehicle’s in the Shop: What Drivers in Round Rock Need to Know

If your car ends up in the repair shop after an accident or covered loss, figuring out how you’ll get around can quickly become a top concern. At Safe Beacon Insurance, based in Round Rock, TX, we understand how important reliable transportation is — especially when your vehicle is temporarily out of commission.

So what happens next? Will your auto insurance help pay for a rental car, or are you responsible for the cost? In this article, we’ll break down how rental reimbursement coverage works, what’s included (and what’s not), and how to find out if your policy offers this protection.

Does My Insurance Cover a Rental While My Car’s Being Repaired?

If you carry comprehensive and collision coverage, your insurance may provide protection if you’re in an accident. But it’s a common misconception that this automatically means the cost of a rental car is included. In reality, that coverage only kicks in if you’ve specifically added rental reimbursement coverage to your policy.

What Is Rental Reimbursement Coverage?

Rental reimbursement is an optional feature you can add to your auto policy. It’s designed to help cover the cost of a rental car while your own vehicle is being repaired due to a covered claim — whether that’s an accident, vandalism, or a non-at-fault incident.

Without this coverage, you may need to pay for a rental out of pocket — and depending on how long repairs take, that could get expensive fast.

How Does It Work?

When your vehicle is in the shop because of an event your policy covers, rental reimbursement helps offset your transportation costs. Here’s how it typically functions:

Daily & Total Limits: Most policies set a cap on how much they’ll pay per day and the total amount they’ll cover. For instance, a common setup is $35 per day, up to $1,050 total (30 days).
Filing a Claim: You’ll need to report the accident to your insurer and get approval for the claim before your rental is covered.
Direct Billing vs. Reimbursement: Some insurers work directly with rental agencies (like Enterprise or Hertz) and handle payment for you. Others will ask you to pay first and then submit receipts for reimbursement.

When Does Rental Reimbursement Apply?

You can use this benefit when:

Your vehicle is in the shop due to a covered accident.
It’s being repaired following a theft, vandalism, or natural disaster.
The other driver is at fault and their insurance is paying for the rental.

Keep in mind — this coverage does not apply in the following situations:

If your car is in for routine maintenance or unrelated mechanical issues.
You need a rental for a personal vacation.
The cost of the rental exceeds your daily or total limits.

Is Rental Coverage Automatically Included?

Not always. It depends on your specific auto policy. Here’s what to keep in mind:

Standard liability-only policies don’t include rental reimbursement.
Comprehensive or collision coverage may help if your car is totaled or needs repairs, but won’t pay for a rental unless you’ve opted in.
If you’re unsure what your policy includes, don’t guess — reach out to your agent or check your policy declarations page.

How to Check if You Have Rental Reimbursement Coverage

Not sure if you’re covered? Follow these quick steps:

Look Over Your Current Policy
Find the section labeled “rental reimbursement” or “transportation expense” to review the details and limits.
Call Your Insurance Agent
Our team at Safe Beacon Insurance is happy to review your coverage and explain what’s included.
Add It If You Need It
Rental reimbursement coverage is typically inexpensive to add — often only a few dollars a month — and could save you hundreds later on.

What If You Don’t Have This Coverage?

If rental reimbursement isn’t part of your policy, and you need a rental car after an accident:

You’ll likely need to pay out of pocket.
If another driver caused the accident, their insurance should cover your rental, though delays are possible.
Some credit cards offer rental benefits if you pay for the rental with that card — though this often applies more to travel rentals than temporary replacements.

How to File a Rental Reimbursement Claim

If you do have this coverage and need to use it, here’s how to get started:

Report the Claim: Let your insurance company know about the incident right away.
Choose a Rental Agency: Your insurer may recommend a preferred provider that can bill them directly.
Save Your Receipts: If you need to be reimbursed, hang onto all your receipts and submit them promptly.

What Kind of Rental Car Will I Get?

Your rental options depend on the limits in your policy. For example:

If your coverage allows $35 per day, that may get you a compact or economy model.
If you prefer a larger SUV or need extra space, you may need to pay the difference out of pocket.

Should You Add Rental Reimbursement to Your Policy?

If you rely on your car for daily commuting, school drop-offs, or errands around Round Rock and Williamson County, rental reimbursement is usually worth adding. For just a few extra dollars each month, it can save you from the added stress and cost of securing alternate transportation after an accident.

Final Thoughts

Whether you’re stuck without a car after a fender bender or your vehicle’s in the shop after hail damage, it’s good to know you’ve got options. Rental reimbursement coverage is a small add-on that can offer major peace of mind during a stressful time.

If you’re not sure whether your current policy includes rental coverage — or if you’d like to explore adding it — Safe Beacon Insurance is here to help. We’ll review your plan, explain your options, and make sure you’re set up for smooth sailing if the unexpected happens.