If a policy provides loss of use or rental reimbursement coverage, reimbursement is limited to actual expenses incurred while an insured vehicle is inoperable due to a loss payable under either comprehensive or collision coverage. It is not necessary that the policy include coverage for the kind of loss itself (i.e., a comprehensive loss, but no comprehensive coverage), as long as rental reimbursement is applicable to the loss.
(a) Actual expenses include reasonable fares for substitute transportation. If a rental car is used, the expenses can include daily charges, mileage expenses and taxes, subject to policy limitations.
(b) The insurer may apply daily or aggregate monetary limitations to the actual expenses subject to policy provisions.
(c) The insurer may limit the benefits to the period the vehicle is inoperable or under repair, or ending when an offer to pay for a total loss is made. The offer to pay for the total loss must be made in accordance with these rules, and the date of the offer must be clearly documented in the insurer’s claim file.