In this guide
Rental reimbursement pays for a rental car (or sometimes a taxi or ride-hailing trip) while your car is in the shop after a covered claim. Roadside assistance, often called towing and labor, helps when your car breaks down, with a tow, a jump-start, or a flat tire change. Both are optional add-ons, usually priced modestly, and both come with daily or per-event limits. Whether they're worth it depends on how you'd cope without your car and what services you already have.
Key takeaways
- Rental reimbursement applies only after a covered claim, such as a collision or theft, not routine repairs.
- It pays up to a set daily amount and for a set number of days or a maximum total.
- Roadside coverage reimburses costs such as towing and labor, usually with dollar limits.
- You may already have similar help through a credit card, a car maker, or a motor club.
- Check your limits against real-world rental prices in your area before you rely on them.
What rental reimbursement covers
The Texas Department of Insurance explains that rental reimbursement coverage pays for you to rent a car if yours is stolen or is being repaired after an accident. Some policies also pay for taxis or ride-hailing services. The insurer pays only for the time it considers reasonable to repair or replace your car, at a set daily amount, up to your policy's rental limits.
Two things trip people up:
- It needs a covered claim. If your car is in the shop for a brake job or a mechanical failure, rental reimbursement generally does not apply. The loss usually has to be paid under collision or comprehensive.
- It has caps. Policies often set a maximum per day and a maximum number of days or total dollars. If the rental costs more, you pay the difference.
Because it hooks into collision and comprehensive, you generally can't buy rental reimbursement if you carry liability only. See collision coverage explained and comprehensive coverage for how those claims work.
What roadside assistance covers
An NAIC auto shopping tool notes that towing coverage, which may also be called roadside assistance, reimburses you for your costs if your car is disabled. The Texas Department of Insurance describes towing and labor coverage as paying to tow your car if it can't be driven, and for labor to change a flat tire or jump-start a battery, with dollar limits.
Typical services include:
- Towing to a repair shop (often limited by distance or a dollar amount)
- Jump-starts
- Flat tire changes
- Fuel delivery
- Lockout help
Terms differ between insurers. Some reimburse you after you pay a provider; others dispatch help directly. Read your policy wording to see which applies, and whether the cost of the parts, such as gas or a new tire, is included. Usually it is not.
Quick comparison
| Rental reimbursement | Roadside assistance | |
|---|---|---|
| Helps when | Your car is out of service after a covered claim | Your car is disabled on the road |
| Typical limit type | Daily amount and a maximum days or dollars | Dollar limit per event, sometimes a mileage limit |
| Needs a claim? | Yes, collision or comprehensive | Usually not; many insurers do not treat it as a claim, but check yours |
| Where to look | Declarations page of your policy | Declarations page or endorsement |
When rental reimbursement may be worth it
This coverage is often priced as a small add-on to your premium. A few questions can help you decide:
- Do you have another way to get around? A second car, public transit, or a short commute reduces the need.
- How long would a repair take? Repairs after a serious crash can take weeks, and parts or labor delays can stretch that.
- What do rentals cost where you live? Compare your daily limit with local rates. A low cap may leave a gap.
- Could you pay for a rental out of pocket? If a month of rental fees would be a hardship, the add-on may be worth a look.
Tip: Ask your insurer whether the daily limit and the day limit are separate, and whether rental is covered while you wait for a total-loss settlement. Policies handle this differently.
If your car is totaled, coverage for the rental usually ends a few days after the insurer makes a settlement offer. See what happens when your car is totaled.
When roadside assistance may be worth it
Before you add it, check what you already have. Many drivers are covered by:
- A motor club membership
- Roadside benefits included with a new or certified used vehicle, which vary by manufacturer and time period
- Some credit cards or bank accounts that include roadside help
- Your phone or a car-connected service plan
Duplicate coverage rarely adds value. On the other hand, roadside help from your insurer may be convenient if you drive an older car, take long trips, or don't have another service. Also ask if a roadside request would count as a claim. Many insurers say no, but practices differ, and it's worth confirming.
Common limits and exclusions to read
- Daily and total caps on rental and towing.
- Vehicle type. Rentals may be limited to a standard car, which may not match a truck or van you own.
- Business use. Rental and roadside coverage may not apply if you use your car for delivery or rideshare. See rideshare insurance.
- Waiting periods and reasonable repair time, as the Texas Department of Insurance notes.
- Rental company fees, such as taxes or insurance products sold at the counter.
Rental reimbursement is different from the coverage you may be offered when you rent a car on a trip. For that, see rental car insurance: do you need the counter coverage?
Adding or dropping these coverages
These add-ons are easy to change at renewal or mid-term, and they are priced separately from your main coverages. If you're shopping around, it can help to compare quotes from several insurers with the same limits, since options and daily amounts vary. For other ideas on trimming costs, see practical ways to lower your car insurance premium.
Frequently asked questions
Does rental reimbursement cover routine repairs?
Generally no. It's tied to a covered loss, such as a collision or theft. A mechanical breakdown or scheduled service usually isn't included.
Is roadside assistance the same as towing coverage?
They are closely related. Insurers may call it towing and labor, roadside assistance, or emergency road service. Terms, limits, and services differ, so read your policy.
Will using roadside assistance raise my rates?
Policies differ, and some insurers don't treat it as a claim. Ask your insurer how it handles roadside requests before you use the service.
Can I get rental reimbursement with liability-only coverage?
Usually not, because it relies on collision or comprehensive. Ask your insurer for details.
If the other driver caused the crash, who pays for my rental?
The at-fault driver's liability insurance may pay for reasonable rental costs, but that can take time and depends on the claim. Your own rental coverage can help fill the gap while you wait.
Sources
- Texas Department of Insurance – How to shop smart for auto insurance
- NAIC – A Shopping Tool for Auto Insurance
- NAIC – What Does Auto Insurance Cover?
- Insurance Information Institute – What is covered by a basic auto insurance policy?
General information only. This guide explains general concepts and is not insurance, legal or financial advice. Rules and prices vary by state and insurer. Check your policy documents and speak to a licensed insurance professional or your state insurance department about your situation.