Erie's rental car coverage depends on which policy you have and what you choose to add
Erie does not automatically cover rental cars under a standard auto insurance policy. You have to buy rental reimbursement coverage as an add-on, and it only pays if your car is damaged or stolen and you need a rental while it's being repaired. If you rent a car for a vacation or because you want to drive something different, Erie's policy won't cover that rental — you'd need to buy a separate rental car policy or rely on coverage from your credit card.
The coverage Erie offers is narrow by design: it reimburses you for the cost of a rental car during the repair period after a covered claim. It does not cover damage to the rental car itself, and it does not cover rentals for any other reason.
Key Takeaways
- Erie offers rental reimbursement as an optional add-on that pays for a rental car while yours is being repaired after a covered accident or theft.
- This coverage does not protect the rental car from damage — you would need the rental company's insurance or your credit card's coverage for that.
- Rental reimbursement only works if the damage to your car is covered under your collision or comprehensive policy.
- If you rent a car for any reason other than repairing your own vehicle, Erie's policy does not cover it.
- The daily limit and total limit for rental reimbursement vary by policy, so check your declarations page or call Erie to see what you have.
How Erie's rental reimbursement coverage works
When you add rental reimbursement to your Erie policy, you set a daily limit — typically $30, $45, or $60 per day — and a total limit for the entire claim, often $900 to $1,500. If your car is damaged in a covered accident and you rent a car while yours is in the shop, Erie will reimburse you up to those limits.
The reimbursement goes to you, not directly to the rental company. You pay the rental company yourself, keep the receipt, and submit it to Erie as part of your claim. Erie will then reimburse you for the rental charges, up to your daily and total limits.
This coverage only kicks in if the damage to your car is covered under your collision or comprehensive policy. If you cause an accident but don't have collision coverage, or if your car is damaged by something your comprehensive policy excludes, rental reimbursement won't pay for a rental either.
What rental reimbursement does not cover
Erie's rental reimbursement does not pay for damage to the rental car itself. If you rent a car and get into an accident with it, the rental company's insurance — or your own coverage — would have to cover that damage. You cannot use your Erie policy to protect a rental vehicle.
The coverage also does not apply to rentals for any reason other than repairing your own vehicle. If you rent a car for a trip, because yours is in the shop for maintenance (not a covered claim), or because you want to drive something different, Erie will not reimburse you. The rental has to be a direct result of a covered claim on your own car.
There is also no coverage if you are renting a car to replace one that was totaled. Once your car is declared a total loss, the claim is closed, and rental reimbursement stops — even if you are still waiting for the settlement check or for the title transfer to complete.
How to add rental reimbursement to your Erie policy
You can add rental reimbursement when you first buy an Erie policy or at any time after. Contact your Erie agent or call Erie's customer service line to request the add-on. You will choose your daily limit and total limit, and Erie will quote you a premium for that coverage.
The cost is usually modest — often $10 to $30 per six-month policy period, depending on the limits you choose — but it varies by state and by your driving record. Ask your agent what the premium would be for the daily and total limits you want.
Once you have added the coverage, it will appear on your declarations page. Keep a copy of that page so you know what your limits are if you ever need to file a claim.
What to do if your car needs repairs and you need a rental
If your car is damaged in an accident or theft and you have rental reimbursement coverage, tell the rental company when you rent that you will be submitting the charges to your insurance. Some rental companies will work directly with your insurer, but most will just rent you a car and let you handle the reimbursement yourself.
Keep all receipts from the rental company, including the daily rental charges and any taxes or fees. When you file your claim with Erie, provide those receipts along with your claim documents. Erie will review the charges against your daily and total limits and send you a reimbursement check.
The reimbursement process usually takes a few weeks after you submit the receipts. If the rental charges exceed your daily or total limit, Erie will only reimburse up to the limit — you will have to pay the difference yourself.
Alternatives if you don't have rental reimbursement
If you don't have rental reimbursement coverage on your Erie policy, you have other options. Many credit cards offer rental car coverage as a cardholder benefit — usually covering damage to the rental car, but sometimes also covering the rental cost itself if your own car is damaged. Check your credit card's benefits guide to see what it covers.
You can also buy a separate rental car policy from the rental company itself, though this is usually more expensive than adding rental reimbursement to your auto insurance. The rental company's coverage typically covers damage to the rental car and sometimes covers the rental cost if your own vehicle is damaged.
If you are renting a car for a reason other than repairing your own vehicle, your credit card or the rental company's policy is your only option — Erie's policy will not cover it.
Frequently Asked Questions
Does Erie cover damage to a rental car I'm driving?
No. Erie's rental reimbursement only pays for the cost of renting a car while yours is being repaired. It does not cover damage to the rental car itself. You would need the rental company's insurance, your credit card's rental coverage, or a separate rental car policy to protect the rental vehicle from damage.
What if my car is totaled — does rental reimbursement still pay?
No. Once your car is declared a total loss, the claim closes and rental reimbursement stops. You can only use this coverage while your car is being repaired. After that, you are on your own for transportation costs.
Can I use rental reimbursement if I don't have collision or comprehensive coverage?
No. Rental reimbursement only works if the damage to your car is covered under your collision or comprehensive policy. If you don't have those coverages, or if the damage is not covered, rental reimbursement won't pay for a rental either.
How much does rental reimbursement cost to add to my Erie policy?
The cost varies by state, your driving record, and the daily and total limits you choose. It is usually between $10 and $30 per six-month policy period. Call your Erie agent for a quote based on your specific situation.
What if the rental charges exceed my daily limit?
Erie will only reimburse up to your daily limit and your total limit for the claim. If the rental charges are higher, you pay the difference. You can choose higher limits when you add the coverage if you want more protection.