What AAA Auto Insurance Covers for Rental Cars

AAA auto insurance does not automatically cover rental cars — coverage depends on which policy you choose and what add-ons you purchase

AAA offers rental car coverage as an optional add-on to your auto insurance policy, not as a standard feature. Whether your rental is covered comes down to two things: whether you bought the add-on, and which type of coverage you selected. If you did not add rental reimbursement to your policy, AAA will not pay for a rental car if yours is damaged or stolen.

The coverage works differently depending on whether your car is being repaired after a collision, theft, or another covered loss. AAA's rental car add-on typically reimburses you for the cost of renting a vehicle while yours is in the shop, up to a daily limit you choose when you buy the coverage.

Key Takeaways

• Rental car coverage is an optional add-on to AAA auto insurance policies and is not included automatically.
• AAA offers rental reimbursement coverage that pays toward the cost of a rental car while yours is being repaired after a covered loss.
• You choose a daily limit (commonly $30, $45, or $60 per day) when you purchase the add-on, and AAA reimburses up to that amount.
• The coverage applies only to losses covered under your collision or comprehensive insurance — not to accidents you cause if you carry liability-only coverage.

How AAA rental car coverage works

When you add rental reimbursement to your AAA policy, you select a daily limit. Common options are $30, $45, or $60 per day, though the exact amounts available vary by state and your specific policy. AAA will then reimburse you up to that daily amount for each day your car is in the shop after a covered loss.

The coverage has a maximum number of days it will pay for — typically 30 days, though this varies. If your car is still being repaired after 30 days, AAA stops reimbursing. You would then pay for any additional rental days out of pocket.

You pay for the rental yourself and submit receipts to AAA for reimbursement, or in some cases AAA may work directly with a rental company. The exact process depends on your specific policy and which rental company you use.

What types of losses trigger rental car coverage

Rental car reimbursement covers losses that are themselves covered under your collision or comprehensive insurance. If your car is damaged in a collision you did not cause, or damaged by theft, weather, or vandalism, and you have the appropriate coverage, then rental reimbursement applies while it is being repaired.

If you carry liability-only insurance (the minimum required in most states), rental car coverage will not help you. Liability covers damage you cause to other people's property, not damage to your own vehicle. You would need to add collision and comprehensive coverage to your policy first, then add rental reimbursement on top of that.

If your car is damaged in an accident you caused and you have collision coverage, rental reimbursement will cover your rental car while yours is repaired — subject to your deductible and daily limit.

Daily limits and maximum reimbursement periods

When you purchase rental car coverage from AAA, you choose a daily limit that fits your budget. A $30 daily limit means AAA reimburses up to $30 per day; a $45 limit means up to $45 per day. The daily limit you choose affects your premium — higher daily limits cost more.

Most AAA policies cap reimbursement at 30 days per claim, though some policies may offer different maximums. If your repair takes 40 days, AAA covers 30 days of rental and you pay for the remaining 10 days yourself.

The total reimbursement is the daily limit multiplied by the number of days your car is in the shop, up to the maximum number of days covered. If you choose a $45 daily limit and your car is repaired in 20 days, AAA reimburses $900 (20 days × $45).

Comparing AAA rental coverage to other insurers

Most major auto insurers — including State Farm, Geico, Progressive, and Allstate — offer rental car coverage as an optional add-on, similar to AAA. The structure is usually the same: you choose a daily limit, and the insurer reimburses you up to that amount while your car is being repaired.

Daily limits and maximum reimbursement periods vary by insurer and state. Some insurers offer daily limits as low as $20 or as high as $100; some cap reimbursement at 14 days, others at 30 or more. The cost of the add-on also varies. Comparing quotes from multiple insurers will show you the specific options and prices available in your area.

AAA membership itself does not automatically include rental car coverage through your auto insurance policy. AAA's roadside information membership (which covers towing and lockouts) is separate from auto insurance and does not pay for rental cars.

When rental car coverage does not explore

Rental car reimbursement does not cover rentals for trips, vacations, or personal use. It applies only to rentals needed because your car is in the shop after a covered loss. If you rent a car while yours is parked at home, AAA will not reimburse you.

The coverage also does not explore if your car is damaged in an accident you caused and you do not have collision coverage. It does not cover damage from normal wear and tear, maintenance, or mechanical breakdown. It does not cover rentals while your car is at a dealership for recalls or warranty work.

If you are at fault in an accident and the other driver's insurance is paying for your repairs, you may still use your own rental car coverage — but you would need to coordinate with the other driver's insurer to avoid paying twice.

How to add or modify rental car coverage on your AAA policy

To add rental car reimbursement to your AAA auto insurance policy, contact AAA directly by phone, through their website, or in person at a local office. You will need to tell them which daily limit you want ($30, $45, $60, or whatever options are available in your state). AAA will quote you the additional premium and add the coverage if you accept.

You can modify your coverage at any time — increasing or decreasing your daily limit, or removing the coverage altogether. Changes typically take effect on your next billing cycle or on a date you specify. If you already have rental car coverage and want to change the daily limit, contact AAA with your policy number and the new limit you want.

When you file a claim for a covered loss, tell AAA that you have rental car coverage so they know to include it in your claim. Keep receipts from the rental company and submit them to AAA as part of the claims process.

Frequently Asked Questions

Does AAA membership automatically cover rental cars?

No. AAA membership provides roadside information (towing, lockouts, fuel delivery) but does not include rental car coverage. Rental car reimbursement is an optional add-on to your AAA auto insurance policy that you must purchase separately.

What if my repair takes longer than the maximum reimbursement period?

If your car is in the shop for 40 days and your policy covers 30 days of rental, AAA reimburses for 30 days only. You pay out of pocket for any rental days beyond that. You can contact AAA to request an extension in unusual circumstances, but there is no may provide it will be approved.

Can I use rental car coverage if I have liability-only insurance?

No. Rental car reimbursement only applies to losses covered under your collision or comprehensive insurance. If you carry liability-only coverage, you would need to add collision and comprehensive first, then add rental reimbursement as an optional add-on.

Do I have to use a specific rental company to get reimbursed?

Most AAA policies reimburse you for rentals from any company, as long as you submit receipts. Some policies may have preferred rental partners that offer discounts. Check your policy documents or call AAA to see if there are any restrictions or preferred vendors in your area.

What happens if the rental car costs more than my daily limit?

AAA reimburses only up to your chosen daily limit. If you rent a car for $65 per day and your limit is $45, AAA pays $45 and you pay the remaining $20 out of pocket each day.