Auto Owners covers rental cars only if your policy includes rental reimbursement coverage, and only up to the daily limit you chose when you bought the policy
Auto Owners does not automatically cover a rental car when yours is in the shop or damaged in a collision. You need a separate add-on called rental reimbursement coverage (sometimes called rental car coverage) to get reimbursed for daily rental costs. This coverage pays the rental company directly or reimburses you after you pay, depending on how your policy is set up.
The coverage only works when your own car cannot be driven because of a loss that your collision or comprehensive coverage would pay for — a wreck, theft, weather damage, or vandalism. It does not cover rentals for trips, vacations, or when you simply want a different car. And it only pays up to the daily limit you selected, which is typically $30, $45, or $60 per day, with a total limit of $900 to $1,800 depending on your choice.
Key Takeaways
- Auto Owners rental reimbursement coverage is optional and must be added to your policy; it does not come standard.
- The coverage only pays when your car is damaged or lost in a way your collision or comprehensive coverage would cover, not for personal choice rentals.
- You choose a daily limit ($30 to $60 range is common) and a total limit when you add the coverage, and you will only be reimbursed up to those amounts.
- The rental period is usually limited to 30 days per claim, so very long repairs or replacements may exceed your coverage.
- If you do not have this coverage and rent a car, you will pay the full rental cost out of pocket.
How rental reimbursement coverage works with Auto Owners
When your car is damaged in a covered loss — a collision, theft, fire, or weather event — and you file a claim with Auto Owners, the adjuster will approve repairs or a total loss settlement. During the time your car is being repaired or replaced, rental reimbursement coverage kicks in if you have it on your policy.
You rent a car from any rental company you choose. Auto Owners will either pay the rental company directly (if you arrange that ahead of time) or reimburse you after you submit the rental receipt and proof of the claim. The reimbursement covers the daily rental rate only — not insurance, fuel, tolls, or damage waivers you buy from the rental company.
The coverage stops when your car is ready to drive again, when repairs are complete, or when the total number of days hits your policy limit — whichever comes first. Most Auto Owners policies cap rental coverage at 30 days per claim.
Daily limits and how they affect what you pay
When you add rental reimbursement to an Auto Owners policy, you choose a daily limit. Common options are $30, $45, or $60 per day. If you rent a car that costs $75 per day and your limit is $45, Auto Owners pays $45 and you pay the $30 difference out of pocket each day.
You also have a total limit — the maximum Auto Owners will pay across the entire rental period. A $45 daily limit with a $900 total limit means the coverage will pay for up to 20 days of rental (900 ÷ 45 = 20 days). After that, you pay the full rental cost yourself, even if repairs are still ongoing.
The daily limit you choose affects your premium. A $30 daily limit costs less than a $60 daily limit. If you have an older car or rarely drive, a lower limit may be enough. If you have a long commute or depend on your car for work, a higher limit protects you better if repairs take weeks.
When rental coverage does and does not apply
Rental reimbursement coverage applies only to losses covered by your collision or comprehensive coverage. If a covered accident damages your car and you need a rental while it is repaired, the coverage works. If your car is stolen and you rent while waiting for the insurance settlement, the coverage works. If a tree falls on your car during a storm, the coverage works.
The coverage does not apply if you rent a car for a vacation, a road trip, or because you want a different vehicle. It does not apply to mechanical breakdowns or wear and tear — only to sudden, accidental damage or theft. It also does not apply if you are at fault for an accident and do not have collision coverage, or if the damage is not covered by your policy for any other reason.
Some Auto Owners policies exclude rental coverage for certain situations, such as if you are using the car for rideshare or commercial purposes. Check your policy documents or call your agent to confirm what is and is not covered in your specific case.
What rental reimbursement does not pay for
Auto Owners rental reimbursement covers the daily rental rate only. It does not cover the rental company's insurance or damage waiver, even if you buy it. It does not cover fuel, tolls, parking fees, or any extras like GPS rental or roadside assistance the rental company offers.
It also does not cover the cost of returning the car late, late fees, or charges for damage you cause to the rental car. If you damage the rental vehicle, the rental company's damage waiver (which you would have purchased separately) covers that, not your Auto Owners policy. And if you get a traffic ticket while driving the rental, you are responsible for paying it — Auto Owners does not cover traffic violations.
How to add or check rental reimbursement coverage
Rental reimbursement coverage is not included in a standard Auto Owners policy. You must ask your agent to add it. When you do, you will choose a daily limit and a total limit. Your agent can explain the cost difference between options and help you pick limits that fit your situation.
If you already have an Auto Owners policy, you can call your agent or log into your online account to see whether rental reimbursement is listed on your declarations page. If it is not there, you do not have it. If it is listed, your declarations page will show your daily limit and total limit so you know exactly what you are covered for.
Adding rental reimbursement is usually inexpensive — often $5 to $15 per year depending on the daily limit you choose — but the cost varies by state and by your specific situation. Ask your agent for a quote before deciding.
What to do if you need a rental and have this coverage
After you file a claim for damage to your car, tell the Auto Owners adjuster that you need a rental car. Ask whether Auto Owners can pay the rental company directly or whether you will need to pay and submit a receipt for reimbursement. Different agents and different situations may work differently, so confirm the process before you rent.
When you rent, keep all receipts and documents showing the daily rate, the rental period, and the reason for the rental (the claim number). If Auto Owners is paying the rental company directly, provide the rental company with your policy number and claim number so they can bill Auto Owners. If you are paying out of pocket, submit the receipts to Auto Owners along with your claim paperwork.
Do not buy the rental company's damage waiver if your own car insurance covers damage to rental cars, because you would be paying twice. However, if you do not have rental reimbursement coverage on your Auto Owners policy, buying the rental company's waiver protects you if you damage the rental vehicle.
Frequently Asked Questions
What if my car is in the shop for maintenance instead of a covered loss?
Rental reimbursement coverage does not apply to routine maintenance, recalls, or repairs for mechanical problems. It only applies when your car is damaged or lost in a way that your collision or comprehensive coverage would pay for. If your transmission fails or you need new brakes, you pay for the rental yourself.
Does Auto Owners rental coverage work if I rent a car while traveling out of state?
Yes, as long as the rental is for a covered loss. If your car is damaged in an accident while you are traveling and you rent a car to continue your trip, the coverage works the same way it does at home. The daily limit and total limit still apply.
Can I use rental reimbursement if my car is being repaired at a dealership?
Yes, if the repair is for a covered loss. If your car is damaged in a collision or theft and the dealership is doing the repairs, rental reimbursement coverage applies. The coverage does not care where the repairs happen — only that the damage is covered by your policy.
What happens if repairs take longer than my total rental limit covers?
Once you reach your total limit, Auto Owners stops paying for the rental. If repairs are still ongoing, you pay the full daily rental cost yourself. This is why choosing an adequate total limit matters — if you have a $900 limit and repairs take 40 days, you will run out of coverage after 20 days.
Does rental coverage apply if I am not at fault for the accident?
Yes. Rental reimbursement coverage applies to any covered loss, regardless of fault. If another driver hits your car and their insurance is supposed to pay, you can still use your Auto Owners rental coverage while the claim is being settled, and Auto Owners may recover the cost from the other driver's insurance later.