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Texas insurance glossary

Rental reimbursement

Rental reimbursement is optional coverage that pays a daily amount toward a hire car while your own vehicle is being repaired after a covered claim.

Sources checked

It is sold as a daily limit and a total limit — a figure per day, up to a number of days — and both matter more than the headline. A daily limit set years ago against a smaller rental market is the usual reason a claim pays less than the rental bill.

It attaches to a covered claim. A car off the road for a repair the policy does not cover is a car with no rental benefit, which is why it tends to be bought alongside collision and comprehensive rather than alone.

Where the other driver was at fault, their liability coverage may owe the rental instead, and the two should not both be claimed for the same days.

Sources: TDI — home insurance glossary; TDI — automobile insurance guide (CB020). Verified .

A definition, not legal advice and not a quote. Rules and figures change; confirm your own situation against the source named above, or with us, before you act on it. Last checked .

See also

  • Roadside assistance Roadside assistance is optional coverage that pays for towing and on-the-spot help — a jump start, a tyre change, a lockout — when a vehicle will not go.
  • Collision coverage Collision coverage pays to repair or replace the insured’s own vehicle after it hits another vehicle or an object, or overturns, whoever was at fault.
  • Comprehensive coverage Comprehensive coverage pays for damage to the insured’s own vehicle from causes other than collision, such as theft, hail, fire, flood, vandalism and animal strikes.
  • Deductible A deductible is the amount of a claim the policyholder keeps: the insurer pays the covered loss above it, and nothing at or below it.

Where this is handled

Knowing what a coverage is called is not the same as knowing what is on your policy. One independent agency can read your declarations page with you and compare the markets that will write your record.

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