What to do when your car is in the shop: A guide to rental reimbursement coverage

Overview: Having your car in the shop after a covered crash or other incident is never convenient. Rental reimbursement and travel expenses coverage is a valuable optional addition to your auto policy that can assist you. This step-by-step guide gives practical insights into using this optional coverage start to finish, from contacting your insurer and understanding your benefits, to arranging temporary transportation and keeping the correct records for reimbursement while your car undergoes repairs from a covered loss.

Rental reimbursement coverage helps provide temporary transportation while your car is under repair from a covered loss. Travel expenses coverage helps offset expenses relating to a covered loss away from home.

The following steps may only apply to you if 1) you have optional rental reimbursement and travel expenses coverage as a part of your auto policy and 2) your insured car needs repairs due to a loss covered by your policy's comprehensive or collision coverage. Rental reimbursement and travel expenses coverage does not apply to a routine maintenance scenario.

Step 1: Contact your insurance provider promptly

Immediately after a covered incident (collision, theft, storm damage, etc.) report the damage on the insured vehicle to your insurance company. This important first step starts the claim process for your vehicle's damage. Both car rental reimbursement and travel expenses coverage typically depend on having a covered comprehensive or collision claim. Quickly reporting the incident allows you to begin the process of using these benefits. 

Step 2: Understand your coverage and claims process

Once you've reported the claim, contact your agent or claims representative to understand the details related to your rental reimbursement and travel expenses coverage. Knowing your coverage limits will help enable you to make informed choices when you explore temporary transportation options.

• Know your limits. Rental reimbursement and travel expenses coverage provides coverage for different types of expenses and applies limits differently.
  • Rental reimbursement coverage gives both a maximum limit per day and a maximum per loss limit when renting a car as a result of a covered loss.
  • Travel expenses coverage typically provides a maximum limit per loss when the loss occurs more than 50 miles from your home.
• Ask your insurer questions. Does your insurance work with car rental companies that will bill them directly? Or do you need to pay first and keep receipts to get paid back later? How do you submit related expenses? Understanding the answer to these questions and any additional questions you have will allow you to better understand the potential benefits from your coverage. 

Step 3: Find temporary transportation

Consider the best way to obtain temporary transportation while your car is being fixed due to a covered loss.

• Use partner companies. Some insurers may recommend specific rental companies and using one may be easier as they might bill your insurer directly up to your coverage limits. Contact your agent or claims representative as they may likely help arrange this.
• Rent on your own or use other transport options. Choosing an alternative rental company or transportation option such as rideshares, trains or buses may be a better transportation solution for you. Keep in mind, you'll likely need to pay on your own first and later submit receipts for reimbursement.
• Consider extra costs. Rental reimbursement typically only aids in paying for the transportation itself. This means it usually doesn't cover extras like gasoline, rental car upgrades, security deposits, separate insurance or waivers you buy for the rental car or extra mileage fees.

Step 4: Manage travel expenses

In the event the covered incident took place away from home (check your policy for the distance requirement, normally 50-100+ miles) travel expenses coverage might be able to help. This coverage often helps reimburse costs related to necessary lodging (hotel), meals and transportation needed due to a covered loss. Keep track of receipts for potential reimbursement later.

Step 5: Keep detailed records of expenses

Keep an organized record of purchases related to your rental reimbursement and travel expenses coverages. Whether utilizing one or both coverages, having documents related to specific expenses might help with reimbursement and claims processes. 

Step 6: Returning the rental and finishing up

After your own vehicle is repaired or you reach your coverage limit (either per day or per loss), you’ll need to return the rental car according to your rental agreement to avoid additional incurred costs or agree to pay the costs on your own. Once you return the rental car, be sure to get a final receipt showing both the return date and the total charges. Send any remaining receipts related to covered costs to your insurance company for consideration in the reimbursement process.

Even though it may not be convenient to be without your personal vehicle, knowing how to use rental reimbursement and travel expenses coverage can help reduce the stress and cost of managing transportation during the repair period. Consider looking at your specific policy details and talk with your claims representative for guidance based on your situation.

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