Will Your Auto Insurance Cover a Rental Car If Your Car Breaks Down? A Perspective for Alabama and Georgia Drivers

Living in the Southeastern United States, especially in Alabama and Georgia, driving is often essential to daily life. Whether you’re commuting, running errands, or enjoying a weekend getaway, you rely on your vehicle to get you where you need to go. But what happens if your car breaks down? One question we often hear from our clients is, “Will my auto insurance cover a rental car if my car breaks down?” Let’s explore this question and clarify when you might be covered for a rental car in Alabama and Georgia.

Understanding Your Auto Insurance Policy

Auto insurance policies vary, but there are a few common types of coverage that are crucial for understanding when you might be eligible for rental car reimbursement:

1. Rental Reimbursement Coverage This is an optional add-on to most auto insurance policies. It provides coverage for a rental car while your vehicle is being repaired due to a covered claim, such as a collision. However, this coverage generally does not apply to mechanical breakdowns. It’s designed for situations where your car is damaged due to an accident or other insurable events.
2. Comprehensive and Collision Coverage If your car is damaged in a collision or from non-collision events like theft, vandalism, or weather-related incidents, these coverages protect your vehicle. Rental reimbursement can apply if you have comprehensive or collision coverage and your car is undergoing repairs because of these incidents. In these cases, the rental reimbursement allows you to stay on the road while waiting for repairs.
3. Mechanical Breakdown Insurance (MBI) Mechanical breakdown insurance is a separate policy or add-on that covers the cost of mechanical repairs. This type of coverage is less common, but it’s available in some states, including Alabama and Georgia. However, even if you have MBI, rental car coverage may not be included. Check the terms of your policy to understand what’s covered.

When Rental Reimbursement Might Apply

Rental reimbursement typically applies in the following situations:

• Collision: Your car is in an accident, and you’re waiting for repairs.
• Comprehensive: Your car is damaged by something other than a collision (e.g., falling tree, theft, or hailstorm).
• Other Covered Events: Certain specific situations, depending on your policy.

In these cases, rental reimbursement could cover a rental car while your vehicle is being repaired or replaced. Keep in mind that there are often limits to how much per day and for how many days you’re covered. Be sure to check your policy for specifics.

When Rental Reimbursement Might Not Apply

If your car breaks down due to mechanical failure or general wear and tear, rental reimbursement typically does not apply. This coverage isn’t designed to cover routine maintenance or repairs not related to an accident or insurable event. Additionally, if you don’t have rental reimbursement coverage as part of your policy, you’re likely responsible for rental costs.

What Should Alabama and Georgia Drivers Do?

To ensure you’re covered for rental costs when you need them, here are some tips for Alabama and Georgia drivers:

• Review Your Policy: Understand what your auto insurance covers, especially regarding rental reimbursement. If it’s not included, consider adding it.
• Talk to Your Insurance Agent: If you’re unsure about your coverage, reach out to your insurance agent. They can guide you through your policy and suggest add-ons that suit your needs.
• Consider Mechanical Breakdown Insurance: If you want coverage for mechanical repairs, ask about mechanical breakdown insurance and whether it includes rental reimbursement.

In summary, rental reimbursement coverage through your auto insurance is typically designed for situations involving collisions or other insured events, not mechanical breakdowns. Make sure you know your policy details and consider adding coverage that suits your lifestyle and driving habits in Alabama and Georgia.