If your vehicle ends up in the repair shop after an accident, the last thing you want is to be left without transportation. Whether you rely on your car for your daily commute, errands, or family responsibilities, being without a vehicle can quickly turn life upside down. That’s where rental reimbursement coverage, commonly known as rental coverage or substitute transportation, becomes an essential part of your auto insurance protection.

For New Hampshire drivers—who face unpredictable weather, high repair costs, and limited public transportation —understanding rental coverage can help you avoid unexpected expenses and stress. Below is a clear Q&A guide to help you understand how rental coverage works and whether it’s right for you.

What is rental coverage?

Rental coverage, or rental reimbursement coverage, is an optional auto insurance add-on that helps pay for a rental car while your vehicle is being repaired due to a covered claim. This means it applies only when the damage is the result of an event your policy covers, such as a collision or comprehensive loss.

The goal of rental coverage is simple: to keep you on the road without forcing you to pay out-of-pocket for temporary transportation.

Is rental coverage required in New Hampshire?

No. Rental reimbursement coverage is optional in New Hampshire, just like towing coverage and other policy add-ons. Because New Hampshire does not require drivers to carry auto insurance unless they’ve been involved in a prior at-fault accident, rental coverage is never mandated.

Still, many local drivers choose to add it because car repairs today can take longer than ever. With parts delays, busy repair shops, and long wait times, even a minor fender bender could leave you without your vehicle for days or weeks.

How does rental coverage work?

If you’re involved in a covered accident and your vehicle needs repairs, rental reimbursement coverage helps pay for a temporary rental vehicle. Here’s how it typically works:

1. Your vehicle is damaged in a covered incident.

2. You file a claim with your insurance company.

3. Your insurer confirms your rental coverage limits.

4. You rent a vehicle from an approved rental company or your preferred provider (depending on the insurer).

5. The insurance company pays the rental company directly or reimburses you, based on your policy.

Rental coverage does not apply if you simply need a vehicle for personal reasons or if your car is in the shop for routine maintenance.

What does rental coverage typically include?

Most rental reimbursement policies pay a daily rate for a rental car, up to a maximum number of days, which is typically up to 30 days. Common limits include:

• $30 per day, up to $900 total

• $40 per day, up to $1,200 total

• $50 per day, up to $1,500 total

Depending on your insurer, the coverage may also apply to rideshare services or transportation alternatives if a rental car is unavailable.

What does rental coverage not cover?

Rental coverage cannot be used for every type of expense related to temporary transportation. It typically does not cover:

• Car rentals for vacation or leisure

• Rental costs while your car is in the shop for maintenance

• Rental costs after mechanical breakdowns (unless covered under warranty programs)

• Fuel for the rental vehicle

• Security deposits required by rental companies

• Upgrades (e.g., choosing an SUV when your policy covers a compact)

Does rental coverage apply if someone else hits me?

Yes. If another driver is at fault and their insurance accepts liability, their insurance should pay for your rental car. However, this process can take time, especially if fault is disputed or the other driver is uninsured.

This is why many New Hampshire drivers choose to carry their own rental coverage. It allows you to get a rental immediately while your insurer sorts things out, and your insurer may later pursue reimbursement from the at-fault party.

How long will rental coverage pay for a rental vehicle?

Coverage lasts only as long as your vehicle is being repaired due to a claim and only up to the maximum limits listed in your policy. For example, if your policy covers $30 per day for up to 30 days, it will not pay beyond those limits even if repairs take longer.

It’s important to consider how long repairs can realistically take in New Hampshire, especially during winter or busy seasons when body shops may have scheduling backlogs.

Does rental coverage apply if my vehicle is totaled?

Yes, most policies will cover a rental while your insurer evaluates the total loss, processes your claim, and issues a settlement. However, once your settlement is paid—and your totaled vehicle is no longer repairable—rental coverage typically ends.

Some policies may extend rental benefits a few extra days after settlement, but this varies by insurer.

How much rental coverage do I need?

The right level of rental coverage depends on your personal needs, including:

• The type of car you typically drive

• Whether you need room for family members

• Your daily commute distance

• Availability of rideshares or public transportation in your area

• How quickly you need access to a vehicle after an accident

Many New Hampshire drivers find that $40 or $50 per day limits provide adequate flexibility, especially during periods when rental car prices fluctuate.

Is rental coverage expensive?

Rental coverage is generally one of the most affordable add-ons to an auto policy. For many drivers, it costs only a few dollars per month. This small cost can save you hundreds—sometimes over a thousand dollars—when repairs take longer than expected.

Given how unpredictable New Hampshire weather and road conditions can be, rental coverage often pays for itself with just one claim.

Does rental coverage apply if someone else was driving my car in an accident?

Yes. Because rental reimbursement coverage applies to the vehicle rather than the driver, it generally covers the cost of a rental as long as the claim itself is covered, regardless of who was driving at the time of the incident (as long as they had your permission).

How do I know if I already have rental coverage?

Rental coverage is usually listed on the declarations page of your auto policy under terms such as:

• “Rental Reimbursement”

• “Rental Coverage”

• “Transportation Expense”

If you’re unsure, our agency can review your policy and help you determine whether coverage is included and whether your limits meet your needs.

Final Thoughts

Rental coverage is one of the most practical and affordable types of optional protection you can add to your auto policy. For New Hampshire drivers, where repair times can be unpredictable and weather-related accidents are common, rental reimbursement ensures that an unexpected accident doesn’t leave you without a way to get around.

Whether you rely on your car for work, family responsibilities, or daily errands, rental coverage helps keep life moving when your vehicle can’t. If you’d like to review your auto policy or explore cost-effective rental coverage options, our team at HPM Insurance is here to help.