The importance of rental reimbursement and travel expenses when you're on the road

Overview: An unexpected collision during a road trip can be both stressful and costly. Reimbursement and travel expenses coverage on your auto policy can help cover costs if your car has a covered loss when away from home. Understanding how this coverage works might help you manage expenses for lodging, meals and transportation needs when dealing with a covered incident while traveling.

Vacations and trips are exciting until an unexpected accident happens and you are far from home. Finding a place to stay, eating out, and securing alternate transportation may be nerve racking and hard on your budget. If you had rental reimbursement and travel expenses coverage as part of your auto insurance policy, it could help with the cost and stress.

What is rental reimbursement and travel expenses coverage?

• Optional coverage on your auto insurance policy
• Aids in paying for substitute transportation such as a rental car or bus pass when your personal insured vehicle is under repair from a covered loss
• Helps reimburse you for lodging, meals and transportation if stranded far from home (often defined as 50 or 100+ miles away, check your policy)
• Rental reimbursement typically has a maximum per-day and per-loss limit
• Travel expenses usually has a maximum limit per loss

Scenario: Your car suffers damage from a falling tree. Damages to the car are covered by your auto policy with comprehensive coverage. You need reliable transportation to get to work so you utilize your rental reimbursement coverage to rent a car until your car is repaired.

Scenario: You are on road trip more than 50 miles from home when you get into a collision. Damages to your vehicle may be covered with your policy’s collision coverage but you don’t have time to wait until your car is repaired to go home. With the travel expenses coverage on your policy, you can rent a car and return home when you planned and be reimbursed for any unexpected lodging cost or meals that you may have incurred.

• An optional coverage on your auto insurance policy

Rental reimbursement coverage vs. travel expenses vs. rental car insurance

First, it's important to know that rental reimbursement and travel expenses coverage are optional add-ons for your own auto insurance policy and your personal vehicle. They differ from rental car insurance which you may choose to purchase when renting a car for a general trip.

Highlighted below are the key differences between these coverages on your personal policy and rental car insurance (offered by the rental car agency):

Should I consider these coverages when I travel?

Both rental reimbursement coverage and travel expense coverage are optional but that doesn’t mean they aren’t beneficial. Opting into these additional coverages may save you money, time and unnecessary stress.

Imagine you're driving on a road trip, hundreds of miles from home, and you are in an accident that makes your car undrivable. You need to be back to work by Monday so you can’t wait until your car is fixed. The damage to your car is covered through your comprehensive or collision insurance but how do you get home? In this stressful situation, having both rental reimbursement and travel expenses coverage as part of your auto policy may be very helpful.

• Rental reimbursement coverage keeps you mobile while your car is repaired. Whether your car is repaired near where the incident happened or back home, rental reimbursement coverage could help pay for temporary transportation you need for daily life, within your policy's specific per-day and per-loss limits.
• Travel expenses coverage can help with immediate needs. If you're stranded because of that covered loss, travel expenses coverage could help reimburse you for reasonable, necessary immediate costs. Make sure you are aware of any applicable policy limit. Depending on your situation and distance it might include things such as:
  • Emergency hotel stays.
  • Unexpected meal costs while stranded.
  • Costs to get back home or continue your trip such as bus fare, train ticket, or rental car.
  • Some policies might even help cover transportation costs for a trip back later to retrieve your repaired car.

What if my car breaks down?

If your car breaks down and it is not from a covered collision or comprehensive claim, rental reimbursement and travel expenses coverage does not apply. You would need a different coverage or policy for mechanical breakdown. Check with your insurance company to see if there are options available.

Why should I consider these coverages?

Unexpected car trouble is never convenient, and it is particularly stressful when you’re away from your usual resources. Adding rental reimbursement and travel expenses coverage to your auto policy may be a good way to ease the stress and increase support in difficult travel situations. Consider, if you are in an accident on the road, are you willing and able to cover the cost of lodging, meals, and extra transportation out of pocket?

To discuss how your specific State Farm® auto policy might provide coverage during travel mishaps, or to understand your rental reimbursement and travel expenses options, contact a State Farm agent today.

You can get an auto insurance quote now, or give us a few details and a State Farm® agent will reach out to you.