Does Geico Cover Rental Cars?

Yes, Geico does cover the cost of rental cars if you add rental reimbursement as an add-on coverage.  Geico’s rental car reimbursement is an optional coverage that helps to cover the cost of a rental car when your car is being repaired for a claim that is covered by your Geico car insurance.  Keep reading to find out more about Geico’s rental car reimbursement coverage.

About Geico’s Rental Car Reimbursement

While your vehicle is being repaired for a Geico covered claim, having rental car reimbursement coverage will help to pay for a rental car for you to get around in. However, the entire price of the rental car may not be covered by your rental car reimbursement coverage which may be subject to daily limits on the amount that it will pay out for your rental car.  Furthermore, your rental car coverage may be subject to a per claim limit. An example of a rental car reimbursement limit is if you have $25 per day/ $750 per claim rental car reimbursement coverage. This means that Geico will only cover $25 of your rental car fee per day and a total of $750 for the entire time that your vehicle is in the shop. Therefore, to ensure that your rental car reimbursement coverage covers you for the full length of time that your vehicle is in the shop, it would be wise not to rent the most expensive rental car available.

>>MORE: Do I Need Rental Car Insurance?

How Much Does Geico’s Rental Car Reimbursement Coverage Cost?

The good news is that Geico rental car reimbursement only adds a few dollars a month to your policy.  For example, a 30 year old male with a 2018 Honda Civic (50k/100k/50k liability and $500 deductibles for comprehensive and collision) without rental car reimbursement Geico quoted a rate of $166.45 per month.  The same driver with $35 a day/ $1,050 per claim of rental car reimbursement was quoted $169.32. For $45 a day/ $1,350 per claim the rate quoted was $170.12. And for $50 per day/ $1,500 per claim the quoted rate was $170.53.

So it only costs $3-5 dollars a month to add rental car reimbursement coverage to your Geico car insurance policy. For the benefits, it is totally worth it.

Do You Have To Pay The Full Amount And Wait For Reimbursement?

No, you do not have to pay the full amount for your rental car and wait for Geico to reimburse you if you rent your car from Enterprise Rent-A-Car.  Enterprise will bill Geico directly for your rental car. Yet, you do not have to rent your car from Enterprise. You can use any reputable rental car company.  However, with other rental car companies, you have to pay for the rental car upfront and your Geico rental car reimbursement coverage will reimburse you up to your coverage limits.  You can always inquire at other rental car companies as to whether they do direct billing to Geico. 

Does Geico Insurance Cover Damage To Your Rental Car

If you have comprehensive and collision coverage on your Geico policy, it will usually cover you when you are driving a rental car when your car is in the shop for repair on a covered claim.  You generally need to rent a vehicle of a comparable size for your Geico coverage to apply. You also need to check your specific policy to ensure that damage to your rental car is covered by Geico.

What Is Not Covered By Geico’s Rental Car Reimbursement?

Your Geico rental car reimbursement coverage will not cover the cost of gas, mileage, additional rental car coverage or your security deposit.  Thus, even with rental car reimbursement coverage, expect to pay a moderate out of pocket expense to have a car to drive while yours is in the shop.

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Final Thoughts

Geico does cover rental cars with its rental car reimbursement coverage and if you rent your car from Enterprise Rent-A-Car, Geico will be billed directly.  You still need to have money for your security deposit, and any gas and mileage charges you must pay. The good news is if you have comprehensive and collision, you may not have to pay extra for the rental car insurance as your Geico insurance may already cover damage to the rental car.

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