Skip to main content

Car Sense

Insurance to Rent a Car After an Accident

Did you know that ERIE provides insurance to rent a car if your regular car lands in the shop for a while?

The endorsement is known as Transportation Expenses, and it provides coverage for a rental car while your regular car is being repaired as the result of a covered loss.

This coverage applies to two types of auto claims: collision claims (which result from physical damage to your vehicle caused by rolling over or hitting another vehicle or object) and comprehensive claims (resulting from something other than collision, such as fire, theft or vandalism). Both collision coverage and comprehensive coverage are optional coverages you can choose to add to your policy.

If you choose to purchase optional comprehensive coverage for your car, ERIE automatically provides basic rental car coverage after a comprehensive claim. (In North Carolina, this applies to vehicle theft claims only.)

Things are different with a collision claim. If you choose to purchase optional collision coverage for your car, you’ll need to add Transportation Expenses in order to have rental car coverage after a covered loss. (The only exception is Virginia, where state regulations mandate basic coverage at no additional cost.)

Transportation Expenses coverage for collision claims can save you sizeable out-of-pocket costs. It’s affordable, too, with coverage for one vehicle starting at just $8 a year.

No surprises at the rental counter

Most insurance companies offer insurance to rent a car in the form of a daily dollar limit toward a rental car. (Virginia has aggregate per loss instead of a daily limit). This often leads to guess work on your part about what kind of vehicle you can get for a given daily limit. Even if you think you chose the right limit, there’s no guarantee it will be enough to cover the vehicle you really want—or need.

ERIE decided to take a different, more intuitive approach.* Instead of a daily limit, you select a class of vehicle you want. There are five classes from which to choose:

Class 1: Compact sedanClass 2: Traditional sedanClass 3: Small SUV or pickup truckClass 4: Minivan or midsize SUVClass 5: Luxury sedan or large SUV

“Not everyone knows what $35 a day will rent, but everyone knows what a minivan is,” says Cody Cook, a vice president and product manager at ERIE and dad who chose Class 4 to accommodate his family of six. “By having to choose a class instead of a daily limit, you know you have the right coverage before you need to use it.”

Interested in learning more about insurance to rent a car after an accident? Then make sure to contact an Erie Insurance Agent in your community.

*Due to state requirements, ERIE maintains dollar limits for Transportation Expense coverage in North Carolina and Virginia.

Have you ever thought about how you’d get around if an accident landed your regular car in the shop? /blog/insurance-to-rent-a-car Erie Insurance

ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York).  The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.

The insurance products and rates, if applicable, described in this blog are in effect as of November 2014 and may be changed at any time. 

Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions. 

The insurance products and services described in this blog are not offered in all states.  ERIE life insurance and annuity products are not available in New York.  ERIE Medicare supplement products are not available in the District of Columbia, New York and Wisconsin.  ERIE long term care products are not available in the District of Columbia and New York. 

Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.

Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.