AAA auto insurance does not automatically cover rental cars — you need to add rental reimbursement as a separate coverage option

AAA's standard auto insurance policies cover damage to your own vehicle and liability to others, but they do not pay for a rental car if yours is damaged or stolen. You have to purchase rental reimbursement coverage (sometimes called rental car coverage) as an add-on. This coverage reimburses you for the daily cost of renting a car while yours is being repaired after a covered claim.

The amount AAA will reimburse depends on the daily limit you choose when you buy the coverage. Common daily limits are $30, $45, or $75 per day, with a maximum total payout per claim (often 30 days). If you rent a car that costs more than your daily limit, you pay the difference out of pocket.

Key Takeaways

  • Rental reimbursement is an optional add-on to AAA policies and does not come standard with collision or comprehensive coverage.
  • You choose a daily limit ($30 to $75 is typical) and a maximum number of days AAA will cover, usually 30 days per claim.
  • The coverage only pays out after a covered claim — collision, comprehensive, or certain other losses — and only while your car is being repaired.
  • Your credit card or employer may already cover rental cars, so check those benefits before buying AAA's coverage.
  • AAA members get a discount on the add-on premium, but the discount amount varies by state and membership level.

How rental reimbursement works with AAA claims

When you file a claim for damage covered by your collision or comprehensive coverage, AAA will begin paying for a rental car only if you have purchased rental reimbursement. The coverage kicks in once the repair shop has your vehicle and starts work. AAA does not pay for a rental car while you are deciding whether to file a claim or waiting for an adjuster to inspect your car.

You typically rent a car from any rental company you choose — AAA does not require you to use a specific vendor. You pay the rental company upfront, then submit the receipt to AAA for reimbursement. AAA will reimburse you up to your daily limit. If the daily rate is $65 and your limit is $45, AAA pays $45 and you absorb the $20 difference.

The coverage stops once your car is repaired and ready to pick up, or when you reach the maximum number of days in your policy (usually 30). If repairs take longer than your coverage period, you are responsible for rental costs beyond that point.

What AAA rental coverage does and does not include

Rental reimbursement covers the base daily rental rate for a standard vehicle. It does not cover insurance the rental company sells you, fuel, tolls, parking fees, or damage to the rental car itself. If you damage the rental car, the rental company's damage waiver (which you can purchase separately) or your own comprehensive or collision coverage may cover it — but AAA's rental reimbursement does not.

The coverage applies only to claims that fall under your collision or comprehensive coverage. If you cause an accident and file a collision claim, rental reimbursement applies. If a tree falls on your car and you file a comprehensive claim, it applies. If someone hits you and their insurance pays (a third-party claim), AAA's rental reimbursement typically does not apply, because your own policy was not triggered.

AAA member discounts on rental coverage

AAA members receive a discount on rental reimbursement premiums compared to non-members buying the same coverage from AAA. The discount percentage varies by state and by your AAA membership level (Basic, Plus, or Premier). A higher membership tier may may have access to you for a larger discount.

To find the exact discount and premium for your situation, contact your AAA agent or log into your account online. The cost is usually modest — often $10 to $25 per six-month policy period — but the discount makes it cheaper than buying the coverage elsewhere if you decide you need it.

Alternatives to AAA rental coverage

Before you buy rental reimbursement from AAA, check whether you already have coverage elsewhere. Many credit cards, especially premium travel cards, cover rental car damage and sometimes daily rental costs if you charge the rental to that card. Your employer's insurance plan or your homeowners or renters insurance may also include rental car coverage.

If you rent cars infrequently, the cost of adding coverage to your AAA policy may exceed what you would pay out of pocket for a few days of rental. A $20 rental reimbursement premium covers only one or two rental days at typical rates, so the math may not work if you rarely file claims.

If you rent cars regularly for work or travel, or if you live in an area where repair shops have long wait times, rental reimbursement becomes more valuable. Calculate how many days per year you might need a rental, multiply by your daily rental costs in your area, and compare that to the annual premium AAA quotes you.

How to add rental coverage to your AAA policy

Contact your AAA agent by phone, through your online account, or in person at a local AAA office. Tell them you want to add rental reimbursement coverage and ask what daily limits are available in your state. Choose a daily limit that matches typical rental rates in your area — if economy cars rent for $50 to $60 per day where you live, a $45 limit will leave you paying the difference, while a $75 limit gives you more cushion.

Ask your agent what the maximum coverage period is (usually 30 days) and whether there are any restrictions — for example, some policies limit coverage to repairs at AAA-approved shops, though this is less common. Confirm the premium and when the coverage becomes active. Most changes take effect immediately or on your next policy renewal date.

Frequently Asked Questions

Does AAA cover rental cars if I'm in an accident that's not my fault?

If the other driver's insurance pays for your repairs, AAA's rental reimbursement typically does not apply because your own collision coverage was not triggered. However, you may be able to claim rental costs from the at-fault driver's insurance directly. Ask your AAA agent whether your policy covers rentals under uninsured motorist or underinsured motorist claims.

What if the repair takes longer than my coverage period?

Once your rental reimbursement coverage period ends (usually 30 days), AAA stops paying. You are responsible for any additional rental costs. If repairs are taking longer than expected, contact the repair shop and your AAA agent to understand the timeline before you exceed your coverage limit.

Can I rent a luxury car and have AAA cover the full cost?

AAA reimburses up to your daily limit, regardless of the car you rent. If you rent a luxury vehicle that costs $150 per day and your limit is $45, AAA pays $45 and you pay $105. Most people rent economy or mid-size cars to stay within their daily limit.

Do I need rental coverage if my credit card covers rentals?

Check your credit card's rental coverage first. If it covers the full daily rate and damage, you may not need AAA's coverage. However, credit card coverage often has conditions — you must charge the rental to that card, and coverage may be secondary (paying only after your own insurance). If your card's coverage is limited, adding AAA's rental reimbursement provides a backup.

Is rental reimbursement worth the cost?

It depends on how often you file claims and how long repairs typically take in your area. If you file a claim every few years and repairs take a week, the coverage pays for itself in one claim. If you rarely file claims, the premium may exceed what you would pay out of pocket for occasional rentals.