When your car is in the shop after an accident, life doesn’t stop. Texans often ask: Do I need rental reimbursement? or if their policy already includes it. The short answer is — it depends on your lifestyle and how much you rely on your car.
In this guide, we’ll break down rental car coverage Texas drivers should know about, when it makes sense, when it doesn’t, and how much it costs.
What Is Rental Car Coverage in Texas?
Rental car coverage (often called car rental reimbursement coverage) is an optional add-on to your auto insurance policy. It pays for a rental vehicle when your car is being repaired due to a covered claim, like an accident or storm damage.
It’s not the same as buying extra insurance at the rental car counter. Instead, it helps you avoid paying out-of-pocket for a temporary vehicle while your car is in the shop.
👉 Important distinction: If you rent a car for vacation or personal use, your Texas auto insurance typically extends liability, collision, and comprehensive coverage to that rental car. However, it does not pay for the cost of the rental itself — that’s where rental reimbursement coverage comes in.
The Texas Department of Insurance also explains that rental reimbursement is an optional coverage you can add to your policy, separate from liability or collision.
Do I Need Rental Reimbursement Coverage?
Adding this coverage depends largely on how much you rely on your car:
- Yes, you likely need it if…
- You drive daily for work, school, or errands.
- You only own one car in your household.
- You live in an area where rideshare or public transit isn’t practical.
- You might skip it if…
- Your family has multiple cars and you could share temporarily.
- You mostly work from home and don’t need daily transportation.
- You already have a backup plan (such as a credit card benefit or membership program).
Texas-Specific Considerations
Driving distances in Texas are long — commuting without a car is nearly impossible in most areas. Add in the risk of hailstorms, highway collisions, and long repair shop wait times, and suddenly being without a car for weeks could cost you more than the small premium.
Average rental cars in Texas run $40–$60 per day, which adds up quickly. Without rental reimbursement, a two-week repair bill could be $600–$800 out-of-pocket.
Cost of Rental Car Insurance Texas
The good news: this add-on is affordable. Most carriers offer rental reimbursement coverage for just $2–$15 per month.
Policies usually provide:
- Daily limits: $30–$50 per day for rental costs
- Maximums: $900–$1,500 per claim
That small monthly premium can save you hundreds if your car ends up in the shop after a crash or weather-related claim.
Other Texas Auto Insurance Add-Ons to Consider
Rental reimbursement isn’t the only helpful add-on. Texas drivers also commonly consider:
- Roadside assistance
- Gap insurance (for newer vehicles)
- Accident forgiveness
- Glass repair coverage
These optional coverages, along with rental reimbursement, help fill gaps and keep you on the road without financial surprises.
Tips for Deciding
- Think about your lifestyle: Could you realistically go without a car for days or weeks?
- Compare the small premium vs. the cost of rental car insurance in Texas without coverage.
- Ask your agent to review your current policy so you know if rental reimbursement is already included.
Bottom Line
So, do you need rental reimbursement coverage? For many Texas drivers, the answer is yes — especially if you rely on a single car and have no backup.
While your auto insurance usually extends to vacation rentals, only rental car coverage Texas policies with reimbursement will cover the actual rental costs when your car is out of service.
👉 Want to see if you’re covered? Contact Gilded Oak Insurance today for a quick policy review and make sure you’re not caught without a car when you need it most.
⚜️ Stay Connected with Gilded Oak
Join us on social for insurance savings tips, light-hearted entertainment, and everyday insights that make coverage easier (and a little more fun) to understand.
Request a Quote
