When Does Car Insurance Not Cover Rental Car Expenses
There are some instances when you may not be able to lean on your rental reimbursement coverage for your rental costs. For example, you may have two vehicles listed on your policy: a car and a truck. If only the car has rental reimbursement coverage added, but the truck is in an at-fault accident that requires a rental, the truck would not receive coverage for rental fees.
Some other cases where rental car expenses are not covered include:
- Vacationing rental: If you are headed out of town and want to rent a car at your destination, you will have to pay for it out of pocket. Your policy would not cover the rental, regardless of whether your trip is for business or pleasure, due to it not being expensed as a result of a covered loss.
- Mechanical breakdown: If you are left car-less because of a mechanical issue, rental reimbursement coverage does not step in. Instead, it only pays for rental car costs if your car is out of commission due to a covered loss.
- Routine maintenance: Similar to mechanical breakdown, if your car is in the shop for standard maintenance, your car insurance will not cover the costs for a rental between that time.
How To Have Your Rental Car Costs Covered If The Other Driver Caused The Accident
To get a rental car for free when the other driver is at fault, you should file a third-party insurance claim. To do so, follow these steps:
What Are My Options With Renting A Car If The At
If you dont have rental reimbursement coverage youll want to first talk with your insurance company, theres a slight possibility theyll pay for the rental car in this situation. If not, youll want to get with an auto accident attorney and discuss your options for retrieving money for the rental car and more. If the at-fault driver who wasnt insured does have a job theres a possibility you can have some of their wages garnished. Please note that it is more difficult to get larger amounts of money from at-fault drivers who arent insured.
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What Is Not Covered
Rental Reimbursement does not cover the costs of gas, mileage or additional coverage, or any security deposit required by the rental company.
Most rental car providers will ask you to purchase additional insurance from them to cover the rental car. Keep in mind, if you have comprehensive and collision coverage on your GEICO policy, they will usually transfer to your rental car while your vehicle’s accident damage is being repaired. You should decide for yourself if you want to purchase insurance coverage from the rental provider. Your GEICO liability examiner can provide more information and assist you with this decision.
In most states, you can rent a car of a comparable size to your own vehicle. However, if the daily rate of your rental car is more than your daily limit, you will have to pay the difference. Also, if your vehicle repairs are going to take several weeks, you may want to rent a car with a lower daily rate so your rental reimbursement limit will last longer.
Commonwealth of Virginia
* In Virginia, the term Rental Reimbursement is known as “Transportation Expense.”
This material is intended for general information only. It does not expand coverage beyond the policy contract. Please refer to your policy contract for any specific information or questions on applicability of coverage.
Protection Behind The Wheel
But the good news is Root provides the same coverage for your rental car that you purchased for your own vehicle . So if you have the minimum required Liability coverage on your covered car, youâll also have the minimum required Liability on your rental, too. If you donât think you could afford to pay for damages in an accident you cause while driving the rental, consider adding the coverage sold by the rental company.
Rental car reimbursement also does not cover the cost of renting a car when youâre on vacation or when your vehicle is in the shop for regular maintenance.
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When The Car Is Totaled
Typically, the victim may get a car after an accident right away if it was totaled. However, the victim may need to start looking for a new car right away since, in most cases, the purchased rental coverage ends right after the property damage claim reaches a settlement.
Rental cases for a total loss may be a bit more complicated since insurance companies may try to make lower offers. In these cases, it’s vital for people to talk to legal experts to achieve a fair settlement. Typically, the victim must seek reimbursement for their car’s fair market value.
How Long Will You Have A Rental Car After A Total Loss
If you are in the unfortunate situation of being in an accident and your vehicle is totaled, then this means that it will take a few days for insurance companies to determine if they will provide rental coverage or not. In most cases, drivers can get a rental period up to 30 days from their own insurance company as part of their policy however, again this varies depending on location and severity.
If you wait longer than two weeks before filing a claim with your carrier after submitting all requested paperwork , then it may be too late–meaning that the driver would have to use other resources for temporary transportation until a decision is made about whether or not your insurer pays out.
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Car Accidents & Rental Cars
We hope this guide has been helpful in making the process of renting a car after an accident less confusing and stressful. If you have additional questions or concerns about the process of navigating a property damage claim, see our Georgia Car Damage Manual.
Disclaimer: The information provided on this website does not, and is not intended to, constitute legal advice instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. Readers of this website should contact a car accident attorney to obtain advice with respect to any particular legal matter. No reader, user, or browser of this site should act or refrain from acting on the basis of information on this site without first seeking legal advice from counsel in the relevant jurisdiction. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client relationship between the reader, user, or browser and website authors or Butler Law Firm. Butler Law Firm and its attorneys are licensed in the state of Georgia. Unless you have a signed, written agreement with the Butler Law Firm, our firm does not represent you as your attorney.
What Rental Company Should I Use
Different insurance providers may have preferred rental car companies through which they conduct most of their business. Although using these rental companies is usually not required, insurance companies often negotiate discounts for their clients. For example:
- Geico’s preferred rental car company is Enterprise Rent-A-Car. If you’re seeking a claim through Geico, Enterprise will bill Geico directly instead of requiring you to pay at the counter.
- Similarly, Hertz provides discounts to Allstate and State Farm drivers.
Regardless of which rental company you choose, you’ll need to provide a credit card to meet the rental company’s security deposit requirements, and any supplemental insurance coverage you elect to buy from the rental company may not be covered by your claim.
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Youre Responsible For The Accident
When you are to blame for an accident, you may be able to get a rental car through your own insurance provider. When you designed your car insurance policy, you were probably asked whether you wanted to include coverage for a rental car. If you said yes to rental reimbursement, your insurer will cover some or all of the cost of a rental.
Your insurance provider will put limits on the type of car you can get and how long you can keep it. There will probably also be a maximum number of days for which the policy will cover the rental. If you need the rental car for longer than this period of time, youll have to pay for it on your own.
Filing An Insurance Claim
We offer direct billing for eligible claims. Ask your adjuster to set you up with an Enterprise reservation.
- Your Policy: If your policy includes rental coverage, rental costs can be covered. Most policies cover up to a daily and total policy limit.
- Other Driver’s Policy: If you were not at fault in the accident, discuss your rental needs with the adjuster. They can advise if the claim covers a rental.
Sometimes you need a rental right away, before details can be worked out. Reserve your rental now and when you come in to pick up, we can review your options. With over 6,000 locations in North America and our customer-focused approach, you can feel confident we will take care of you during this experience.
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Where Can You File A Claim For A Car Rental After Your Car Accident
You have more than one avenue for obtaining a car rental while your vehicle is being repaired or you are negotiating a settlement with the insurance company. You have the following options to be paid for a car rental:
- Negligent drivers insurance company. As part of the compensation that the negligent driver is responsible for paying you, you are entitled to your car rental fees while your vehicle is being repaired or replaced. His insurance company would pay this cost as part your settlement.
- Your own insurance company. You are not required to purchase car rental insurance under Georgia law. However, if you purchased this type of insurance, you could file a claim for your car rental costs, whether or not the negligent driver had insurance that would pay them.
What Is Covered By Rental Car Insurance
Rental reimbursement pays for a rental car until your vehicle is fixed or replaced after youâre in an accidentâor if your car is damaged from another covered claim. Depending on the insurance company, you can usually add this optional coverage to your policy with a variety of price-point options.
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Find Out Who’s Responsible For Paying What In A Claim
Know what your claim covers, what your insurance company might cover and what the car rental company might cover. If you booked your rental car with a , that may also help pay for some damages to the rental car in the event of an accident.
Collision damage: If you have your own insurance policy with collision and comprehensive coverage, that typically extends to your rental car as well. If your regular policy doesnt cover that, you might consider purchasing a collision damage waiver from your rental car company. Otherwise youll have to pay for the damages.
Damage to others: If you already have liability insurance, that typically extends to rental cars too. If not, you can usually purchase supplemental liability protection from the rental agency, which will pay for damage you do to others vehicles or property.
Dont rely on your credit card for this one. Even though some credit cards offer rental car coverage, they typically do not cover liability insurance. If you dont already have auto insurance, its typically a good idea to buy this otherwise you could be on the hook for the medical and car repair expenses of other parties involved in the accident.
What Type Of Insurance Covers Renting A Car
Rental insurance reimbursement helps cover car rental costs. It is an optional coverage with most insurers. But it is useful following an accident that totals your car, or if you need repairs.
It is typically only applicable for covered losses. If you were involved in an accident, then this qualifies as a covered loss.
Unlike other insurance coverages, there is typically no deductible for rental insurance reimbursement. But the coverage usually does come with certain caps or time limits. It is fairly common for rental insurance coverage to pay out for approximately 30 days.
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What Is The Process To Get A Car Rental
The process to get a replacement vehicle varies depending on your insurance company. If you were not at fault in the accident, then it is possible that your insurance carrier will provide one as part of their policy coverage–allowing them to wait for up to two weeks before providing a vehicle. This can be subject to change based on location and severity however, there are steps that an individual driver should take right away when this happens:
- Contact the police department immediately after an accident has occurred and report what happened
- Take pictures of damage done by other party
- File a claim with your insurance company for the cost of repairs to your vehicle
- If you want to hire a car accident lawyer, then you can go to the internet. They are able to help with getting the rental car paid for in an efficient manner.
When Your Insurance Company May Pay For A Car Rental
If you are at fault for causing a car accident, or if your crash is caused by an uninsured motorist, your own car insurance company may pay for the cost of a car rental if it is necessary but only if your policy provides such coverage. Some insurance policies do not automatically include coverage for car rental costs except as an additional premium. You should familiarize yourself with the coverage you have under your policy and ask your insurance agent about additional coverage you might need.
If another driver is at fault, his or her insurance company may be required to pay your rental car fees.
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Is It Possible For The At
It’s highly common for the at-fault driver’s insurance to not accept liability for a car accident, even if the evidence proves that the driver was – in fact – at fault or it resulted in a death. Overall, most insurance businesses are going to try denying the victim’s claims so that they don’t have to pay for the rental car.
How Is Fault Determined
Generally, fault may be determined through the testimony given by the drivers and witnesses, documented evidence, and, largely, by the police report filed on scene. We recommend photographing the scene and damage and recording witness contact information in order to defend your case.
You should avoid admitting any fault on your own part if you think the other driver is to blame or the situation is questionable. It’s possible for multiple drivers to share fault, which will yield different claim outcomes in different states.
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Can I Recover For My Cars Diminished Value
When your car is repaired after an accident, it may allow you to get the car back on the road as good as new. However, the reality is that the car will have likely lost significant resale or trade-in value simply because it was involved in a crash.
It is very easy today for consumers to learn about a cars accident history through online services such as Carfax. Generally speaking, most people want to avoid a car that has been damaged in an accident even if it was repaired.
If your car loses value after a crash, despite repairs, then you have the right to bring a diminished value claim. In other words, you can seek a recovery that represents the difference between your cars current value and the value it would have held if it had not been in a crash.
It is important to note that you can pursue a diminished value claim only if the damage was caused by another driver. You cannot bring a claim if you contributed to the harm to your car.
Tate Law Offices, P.C., can help you to file a diminished value claim with the at-fault drivers insurance company. If the insurer refuses to pay a full and fair settlement of your claim, we can help you with filing a lawsuit in the proper court.
Can I Get A Rental While My Car Is Being Repaired
Now that you know more about the insurance coverage options that may be available in your case, lets focus on what will likely be your first concern after a crash: Getting a rental car. Three insurance policies, including one we have not discussed yet, may be relied on:
- Liability Under Texas law, the at-fault drivers liability insurer must provide you with a rental while your car is being repaired. You should demand the same type of car as you had before. For example, if you were driving a SUV, you should not be given an economy car as a rental. If necessary, Tate Law Offices, P.C., can contact the insurer on your behalf and help you to secure a rental.
- Comprehensive If you have purchased comprehensive coverage, your own insurer should provide you with a rental during the period when your car is repaired. Again, your lawyer at Tate Law Offices, P.C., can seek this rental for you.
- Rental Reimbursement Some insurance policies include a policy that will cover the costs of a rental while your car is being repaired or replaced regardless of who was at fault. We can review your policy and work with your insurer to make sure you receive the rental you are entitled to receive.
Again, we will work hard to secure a rental for you as a free service. We provide this service at no cost to you because we know how important it will be for you to have safe, reliable transportation while your case is being resolved. You can always write a demand letter as well.
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