Will Insurance Pay for Rental Car During Repairs?

rentail cars during repairs

In the aftermath of a car accident or mechanical breakdown, the last thing you want to worry about is transportation. Fortunately, many auto insurance policies offer provisions for rental car coverage during repairs.

However, the specifics of coverage can vary depending on your location and policy details. In Arkansas, understanding the nuances of auto insurance coverage for rental cars during repairs is essential. Let’s delve into the details to provide clarity and peace of mind for Arkansas motorists.

a woman sitting in a rental car smiling

Understanding Rental Car Coverage:

Before delving into rental car coverage specifics in Arkansas, it’s essential to understand the basics of this insurance provision. Generally, rental car coverage falls into two main categories: rental reimbursement coverage and extended transportation expense coverage.

These provisions offer financial protection for renting a vehicle during repairs or after an accident, ensuring policyholders have access to transportation while their primary vehicle is out of commission. Understanding these categories lays the groundwork for comprehending how rental car coverage operates within the context of Arkansas auto insurance policies.

Rental Reimbursement Coverage:

  1. Rental reimbursement coverage, often an optional add-on to your policy, reimburses you for the cost of renting a vehicle while your car is undergoing repairs due to a covered claim, such as an accident. This coverage usually has daily and total limits, meaning it will reimburse you up to a certain amount per day and up to a total maximum amount for the entire rental period.

Extended Transportation Expense Coverage:

  1. Some comprehensive insurance policies include extended transportation expense coverage, which provides reimbursement for transportation costs beyond a rental car. This can include expenses like public transportation or ridesharing services.

Arkansas Insurance Laws and Regulations:

In Arkansas, rental car coverage isn’t mandated by state law within auto insurance policies. Nonetheless, numerous insurers present rental reimbursement coverage as an elective inclusion. Reviewing your policy documents or consulting with your insurance agent becomes paramount to ascertain whether you possess rental car coverage.

Understanding the specifics of your coverage limits, as well as any potential exclusions, empowers you to make informed decisions regarding your insurance needs. While not obligatory, rental car coverage can provide invaluable support during times of vehicle repairs or accidents, offering financial assistance for temporary transportation arrangements. Therefore, taking the initiative to explore your policy’s provisions ensures you’re adequately protected and prepared for unforeseen circumstances on Arkansas roadways.

Factors Affecting Rental Car Coverage:

Several factors can influence whether your insurance will cover rental car expenses during repairs in Arkansas:

  1. Policy Coverage: Check your insurance policy to see if you have rental reimbursement coverage and the specific terms and limits of that coverage. If you’re unsure, contact your insurance provider for clarification.
  2. Fault Determination: The availability of rental car coverage may depend on who is at fault in the accident. If you’re not at fault, the at-fault driver’s insurance may be responsible for covering your rental car expenses.
  3. Coverage Limits: Even if you have rental reimbursement coverage, there may be limits on the daily and total amount the insurance will pay for the rental car. Be aware of these limits to avoid unexpected expenses.
  4. Rental Car Restrictions: Some insurance policies may have restrictions on the type of rental car you can get or the rental period duration. Make sure to comply with any requirements outlined in your policy to ensure coverage.

Steps to Take After an Accident:

If you’re involved in an accident in Arkansas and need a rental car during repairs, follow these steps to navigate the process smoothly:

  1. Report the Accident: Contact your insurance provider as soon as possible to report the accident and discuss your rental car coverage options.
  2. Document the Damage: Take photos of the damage to your vehicle and gather any other relevant information, such as the police report and witness statements, to support your insurance claim.
  3. Choose a Rental Car: Work with your insurance provider or their preferred rental car company to select a rental vehicle that meets your needs and falls within your coverage limits.
  4. Keep Records: Save all receipts and documentation related to the rental car, including rental agreements and payment receipts, for reimbursement purposes.


While auto insurance policies in Arkansas may not mandate rental car coverage, many insurers offer it as an optional addition to their policies. Understanding the specifics of your coverage and any limitations is crucial for ensuring you have access to a rental car during repairs.

By familiarizing yourself with your policy, knowing your rights, and following the proper steps after an accident, you can navigate the process of obtaining a rental car with confidence and ease. It is also a good idea to consider extra insurance for car rentals to protect yourself further. Contact us today