Your warranty does not cover the rental car itself, but your repair coverage may pay for it
The warranty on your car covers the car itself—not a loaner or rental you drive while repairs happen. However, some manufacturer warranties and most extended warranties include a rental reimbursement benefit that pays you back for the cost of renting a replacement vehicle during covered repairs. This is not automatic; you have to check your specific warranty documents to see whether the benefit exists, what it covers, and what the dollar limit is.
The distinction matters because it changes what you actually pay out of pocket. If your warranty includes rental coverage and you use it correctly, you may owe nothing. If it does not, or if you rent a car that exceeds the coverage limit, you pay the difference yourself.
Key Takeaways
- Manufacturer warranties rarely include rental car coverage, but many extended warranties do—check your documents or call the warranty company to confirm.
- Rental coverage typically reimburses you for a set dollar amount per day (often $25 to $50) up to a total limit, and only during repairs covered by the warranty itself.
- You usually have to pay the rental company upfront and submit a claim with your receipt and repair paperwork to get reimbursed.
- Some warranty programs require you to use their preferred rental partner or approved repair shop to may have access to for the benefit.
- Your auto insurance may also cover rental costs during repairs, so check your policy before paying out of pocket.
What manufacturer warranties typically cover for rentals
Most factory warranties (the coverage that comes with a new car) do not include rental car reimbursement. They cover the cost of parts and labor to repair defects in the vehicle itself, but they stop there. If your transmission fails at 40,000 miles and the dealer fixes it under warranty, the manufacturer pays for the repair—not for the rental car you drove while waiting.
Some luxury brands and a few mainstream manufacturers offer rental coverage as a perk, but it is not standard. BMW, for example, includes rental car coverage in some of its factory warranty packages, but Toyota and Honda typically do not. The only way to know is to pull out your warranty booklet or call the manufacturer's customer service line with your vehicle identification number (VIN).
Extended warranties and rental car benefits
Extended warranties sold by dealers, third-party warranty companies, and some credit card issuers are more likely to include rental coverage. When they do, the benefit usually works like this: the warranty pays up to a set amount per day (commonly $25, $35, or $50) for a rental car during a covered repair, up to a total limit per claim or per year (often $500 to $1,500).
The catch is that the repair itself has to be covered by the warranty. If you have a $3,000 deductible on your extended warranty and your repair costs $2,500, the warranty does not pay for the repair—so it will not pay for the rental either. The rental benefit only kicks in when the warranty actually covers the repair cost.
Some extended warranty programs limit rental coverage to repairs at their approved repair network. If you take your car to an independent shop instead, you may lose the rental reimbursement even if the repair is covered. Read the fine print or ask the warranty company before you drop your car off.
How to claim rental car reimbursement
The process varies by warranty provider, but the general steps are the same. First, confirm with the warranty company or repair shop that your repair is covered before you rent a car. Some warranty companies require pre-approval; others will reimburse you after the fact, but only if you followed their rules.
Second, rent a car at a rate that falls within the warranty's daily limit. If your warranty covers up to $40 per day and you rent a luxury sedan for $80 per day, you will only be reimbursed for $40. Third, keep your rental receipt, your repair invoice, and any paperwork the warranty company sends you. Fourth, submit a claim to the warranty company with copies of all three documents. Most companies process claims within two to four weeks.
Some warranty programs have a preferred rental partner (often Enterprise, Hertz, or Avis) and will only reimburse you if you rent from that company. Check your warranty documents or call before you book.
When your auto insurance may cover the rental instead
Your car insurance policy may include rental reimbursement coverage, which is separate from your warranty benefit. If you have comprehensive or collision coverage, your insurer may pay for a rental car if your vehicle is damaged and being repaired. This coverage typically has its own daily limit and total limit, just like a warranty benefit.
The difference is that insurance rental coverage applies to damage caused by accidents, theft, or weather—not to warranty repairs for mechanical defects. However, if your car breaks down and you are not sure whether the repair is covered by warranty or insurance, call both your warranty company and your insurance company. One of them may cover the rental, and you should not pay out of pocket if coverage exists.
If you have both warranty rental coverage and insurance rental coverage, you can usually only claim from one source. Use the one with the higher daily limit or the one that covers your specific repair.
What to do if your warranty does not include rental coverage
If your warranty does not cover rentals and your insurance does not either, you have a few options. You can pay for the rental yourself and absorb the cost. You can ask the repair shop whether they offer loaner vehicles—many dealerships have loaner programs for customers whose cars are in the shop for warranty work. You can ask a friend or family member for a ride. Or you can delay the repair until you have time to be without a car.
If you are buying an extended warranty and rental coverage matters to you, ask the salesperson or read the contract to confirm it is included. Some extended warranties are cheaper because they do not include this benefit. Paying a bit more upfront for rental coverage can save you hundreds of dollars if you need a major repair.
Rental coverage limits and what they mean
A warranty that offers "$35 per day, up to $700 per claim" means the warranty will reimburse you for up to $35 for each day your car is in the shop, but no more than $700 total for that single repair. If your repair takes 25 days, you get $35 × 25 = $875, but the warranty caps it at $700, so you receive $700 and pay $175 yourself.
Some warranties set an annual cap instead: "$40 per day, up to $1,200 per year." This means if you have multiple repairs in one year, the warranty reimburses you for all of them up to $1,200 combined. Once you hit $1,200, you pay for any additional rentals yourself that year.
A few warranty programs offer unlimited daily reimbursement but cap the total number of days covered (for example, "up to 30 days per year"). Read your warranty documents carefully to understand which type of limit applies to you.
Frequently Asked Questions
Can I rent any car I want and get reimbursed?
No. Your reimbursement is limited to the daily amount your warranty covers, so if your warranty covers $30 per day and you rent a car for $80 per day, you pay the $50 difference. Some warranties also require you to rent from a specific company or at a specific rate class (economy, midsize, etc.). Check your warranty documents before you book.
What if the repair takes longer than expected?
Your warranty rental benefit covers only the days the repair actually takes, not the days you expected it to take. If the shop says three days and it takes five, your warranty covers all five days (up to your daily and total limits). Keep the repair invoice showing the exact dates your car was in the shop.
Do I have to use the warranty company's preferred rental partner?
Many warranty programs require it, but not all. Some will reimburse you from any rental company as long as you stay within the daily limit. Others only reimburse if you use their approved partner. Call your warranty company before you rent to confirm.
Can I claim rental reimbursement if the repair is not covered by my warranty?
No. Rental benefits only apply to repairs the warranty actually covers. If your repair is denied because it falls outside coverage or exceeds your deductible, the rental reimbursement does not apply either. That is when your auto insurance rental coverage becomes important.
What documents do I need to submit for a rental claim?
You will need your rental receipt (showing the daily rate and total cost), your repair invoice (showing the dates your car was in the shop), and your warranty claim form. Some warranty companies also ask for proof that the repair was covered—your repair shop can usually provide this. Submit everything within the timeframe your warranty specifies, usually 30 to 60 days after the repair is complete.