Quick answer: rental reimbursement coverage pays for a rental car or other transportation while your car is being repaired after a covered claim, up to a daily limit and a per-claim maximum you choose. It does not apply to breakdowns, routine maintenance or claims your policy does not cover, and it usually requires collision and comprehensive coverage. Roadside assistance (often called towing and labor) pays for towing, jump starts, lockouts, flat tire changes and fuel delivery, typically up to a set amount per call. Both are worth considering if you rely on your car every day and do not already get similar benefits from an auto club, your car’s warranty or a credit card.
Most drivers never think about these two add-ons until the day they need them: the car is in the body shop for two weeks, or it will not start in a parking lot at night. Both coverages are optional, and both come with limits that are easy to miss when you buy them.
This article explains exactly what each one pays for, the common exclusions, how to choose limits, where you might already have similar protection and how to decide whether to keep them. For a full overview of every part of an auto policy, see our car insurance guide.
This is general educational information, not legal advice, and Pro Insurance Info is not an insurance company. Coverage names, limits and rules differ by insurer and state; your policy and declarations page control. Dollar amounts below are examples only, not typical prices or limits. Sources: National Association of Insurance Commissioners (NAIC) auto insurance consumer guide; Insurance Information Institute (III) auto coverage resources; state insurance department consumer guides. Checked October 2026. Questions: hello@proinsuranceinfo.com.
What Rental Reimbursement Coverage Pays For
Rental reimbursement, sometimes called transportation expense or loss-of-use coverage, helps you stay mobile while your car cannot be driven because of a covered loss. Depending on the policy, it can pay for:
- A rental car from an agency the insurer works with or one you choose.
- Rideshare, taxi or public transit costs, under some policies.
- Transportation while a stolen car is missing, subject to waiting periods in some policies.
Daily and per-claim limits
You choose a limit expressed as two numbers, a daily maximum and a total per claim. A policy might show, for example, $30 per day up to $900 or $50 per day up to $1,500. If a rental costs more per day than your limit, you pay the difference. Once the total is used up, coverage stops even if repairs are not finished.
Repair times can stretch when parts are back-ordered or shops are busy, so the total limit matters as much as the daily one. Think about the cost of a rental in your area for the kind of car you need, and how long a significant repair could take.
When the coverage starts and stops
Rental coverage usually begins when the car cannot be driven because of the covered loss or is dropped off for covered repairs, and ends when repairs are complete. If the car is a total loss, coverage often ends a few days after the insurer makes a settlement offer. Policies explain these rules in the transportation expenses section.
When Rental Reimbursement Does Not Apply
The most common misunderstanding is assuming rental coverage applies any time your car is in the shop. It does not.
- Mechanical breakdowns and maintenance. A failed transmission or a scheduled service is not an insured event. Our article on whether insurance covers a rental when your car breaks down explains why.
- Claims your policy does not cover. Rental reimbursement follows the underlying coverage. If you carry liability only and you cause a crash, there is no collision coverage, so there is no rental coverage for your car.
- Delays you cause. If you postpone repairs or choose not to repair the car, coverage may be limited to a reasonable repair period.
- Upgrades and extras. Extra insurance at the rental counter, fuel and upgrades to a bigger car are usually your cost.
The collision and comprehensive requirement
Because rental reimbursement pays after physical damage to your car, most insurers sell it only to drivers who carry collision and comprehensive. Our explainer on comprehensive vs. collision coverage describes which events each one covers, which also tells you which events can trigger a rental.
If someone else caused the crash
When another driver is at fault, their liability insurer generally owes you for loss of use, which can include a reasonable rental while your car is repaired. That claim can take time while fault is determined. Rental reimbursement on your own policy lets you get a car right away through your insurer, which may later recover the cost from the other driver’s company.
What Roadside Assistance Covers
Roadside assistance, often listed as towing and labor or emergency road service, pays for help when your car cannot be driven where it sits. Common services include:
- Towing to the nearest qualified repair shop or to a shop within a set distance.
- Jump starts for a dead battery.
- Lockout service if keys are locked inside.
- Flat tire changes using your spare.
- Fuel delivery, usually covering the service call but not the fuel itself.
- Winching if the car is stuck in mud, snow or a ditch near the road.
- Labor at the scene, such as minor repairs, under some policies.
How the limits work
Roadside coverage is usually capped per occurrence. Some policies pay a dollar amount per call, others pay for towing up to a set distance and charge you for the rest. Some insurers send a provider from their own network, while others reimburse you after you pay a provider and submit a receipt. Read which model your insurer uses before you need it, so you are not surprised by an out-of-pocket bill at the roadside.
Does a roadside call count as a claim?
Practices vary. Some insurers treat roadside requests separately from accident claims, while others record them as claims in their own systems. Frequent use can affect renewal with some companies. Ask your insurer how roadside calls are treated if you expect to use the service often.
Rental Reimbursement vs. Roadside Assistance
| Feature | Rental reimbursement | Roadside assistance |
|---|---|---|
| What triggers it | A covered collision, comprehensive or theft claim | A breakdown or roadside problem, whether or not there is a claim |
| What it pays for | A rental car or other transportation during repairs | Towing, jump starts, lockouts, tire changes, fuel delivery |
| How limits work | Daily cap and total per claim | Per-call cap or towing distance |
| Usually requires | Collision and comprehensive coverage | Often comprehensive coverage, depending on insurer |
| Covers mechanical breakdown? | No | Yes, for the roadside service, not the repair |
The two coverages solve different problems. Rental reimbursement keeps you moving after an insured loss. Roadside assistance gets you and your car off the road when something goes wrong, insured or not.
Places You May Already Have Similar Coverage
Before paying for either add-on, check what you already have:
- New car or certified pre-owned warranties. Many manufacturers include roadside assistance for a period, and some include a rental while the car is under warranty repair.
- Auto club memberships. Clubs offer towing, battery service, lockouts and other help, with tiers that extend towing distance.
- Credit cards. Some cards provide roadside dispatch or pay-per-use service. Benefits differ widely; read the guide to benefits.
- Phone carriers and other memberships. Some offer roadside programs as an extra.
- Rental car coverage from cards. Separate from rental reimbursement, some cards cover damage to a rental car you are driving. Our article on what car rental insurance covers explains counter coverage and the alternatives.
Paying twice for the same benefit is common. Write down what each source covers and keep the phone numbers in your glove box and phone.
How to Decide Whether You Need Them
Rental reimbursement is worth considering if:
- You have no second car in the household and depend on driving for work, school or child care.
- Public transit or rideshare would be impractical or expensive where you live.
- Your car would take a long time to repair because parts are hard to get.
- A few weeks of rental costs would strain your budget.
Roadside assistance is worth considering if:
- Your car is older or has high mileage.
- You drive long distances, at night or in remote areas.
- You do not already have coverage through a warranty, auto club or card.
- You want one number to call for help.
You may skip them if:
- You have a second car or easy alternatives for getting around.
- Your auto club, warranty or credit card already covers roadside service.
- You would rather keep the premium and pay for occasional help yourself.
Choosing Limits and Using the Coverage
Picking a rental limit
Price a week of rental in your area for a car that fits your family. Choose a daily limit at or near that rate and a total that would cover a lengthy repair. A low daily limit means paying the difference every day.
Using rental coverage after a claim
- Tell the claims representative you have rental reimbursement when you report the claim.
- Ask whether the insurer has a direct billing arrangement with a rental company, which can avoid paying up front.
- Confirm the daily limit and the total remaining.
- Keep the shop informed so repairs are not delayed, and ask for status updates.
- Return the rental promptly when the car is ready.
Using roadside assistance
Save your insurer’s roadside number in your phone and app. When you call, give your location, the problem and your policy number. Stay in a safe place away from traffic. Get the provider’s name and estimated arrival time, and keep any receipts if you will be reimbursed.
Our overview of how car insurance claims work covers the steps that come before you need a rental.
Cost and Value
Both add-ons are typically inexpensive compared with core coverages, but prices vary by insurer and state. Ask for the cost of each separately on your quote and compare it with what you would spend on one long repair or one tow. If you raise your collision deductible to save money, remember that rental reimbursement only pays after a covered claim, so the two choices interact.
Frequently Asked Questions
Does rental reimbursement cover a breakdown?
No. Rental reimbursement applies only when your car is out of service because of a covered loss such as a collision, comprehensive event or theft. Mechanical failures and routine maintenance are not covered losses.
Do I need full coverage to buy rental reimbursement?
Usually yes. Most insurers require collision and comprehensive coverage, because rental reimbursement pays after physical damage to your own car.
Does roadside assistance pay for repairs?
Generally no. It pays for the service at the roadside, such as a tow, jump start or tire change. Repairs at the shop are your cost unless they result from a covered claim.
Does using roadside assistance raise my rates?
It depends on the insurer. Some do not count roadside calls as claims, while others record them. Ask your insurer before you use the service frequently.
Can rental reimbursement pay for Uber or a taxi?
Some policies reimburse rideshare, taxi or transit costs up to the same daily limit. Check your policy or ask your insurer before relying on it.
Common Scenarios and How Each Coverage Responds
A covered crash with a long repair
Suppose your car is hit in a parking lot and needs body work plus a back-ordered part. If you carry collision and rental reimbursement, your policy can pay for a rental up to your daily cap from the time the car goes into the shop. If parts take longer than your total limit allows, you pay for the extra days, or you can ask the at-fault driver’s insurer for loss of use if another driver caused the damage.
A hailstorm or a falling tree limb
Weather damage and falling objects fall under comprehensive. When the car cannot be driven safely, rental reimbursement can apply the same way it does after a collision. If the car is still drivable, many insurers pay for a rental only for the days it is actually in the shop.
A dead battery before work
No claim is involved. Roadside assistance can send a provider for a jump start or tow, and rental reimbursement does not apply because nothing insured happened to the car.
A stolen car
Theft is a comprehensive loss. Many policies provide transportation expenses after a theft is reported, sometimes after a short waiting period, and continue until the car is recovered or the claim is settled.
The Bottom Line
Rental reimbursement and roadside assistance are small add-ons that solve real problems, but each has tight rules. Rental coverage pays only after a covered claim and only up to your daily and total caps. Roadside coverage pays for help on the spot, not repairs. Check what you already get from your warranty, auto club or cards, then add only what fills a real gap.
