Who Pays for a Rental Car After an Accident?

One minor difficulty after a car accident can be finding another mode of transportation. If the accident left you uninjured but with a seriously damaged vehicle, you could be without a car until the repair shop finishes its work.

Some insurance companies include rental car coverage with your policy. In that case, they pay for a rental vehicle during repairs. If you were not responsible for the accident, who should pay for the cost of a replacement vehicle? What should you do while your case is under investigation?

Rental Car Coverage

Many insurers offer rental reimbursement coverage as an optional add-on to your auto insurance policy. If you have it, your insurance provider pays for a rental car until you get yours back. Your insurer will demand reimbursement from the other driver’s insurance company through a process called subrogation.

Rental coverage often has both daily dollar limits (e.g., $30-50/day) and time limits (e.g., 30 days maximum).

In general, the question of who pays for rental car coverage depends on the insurance rules in your state. In an “at-fault” state, the at-fault driver’s insurance company pays for all damages, including the use of a rental car. In a “no-fault” state, your insurance company pays for damages up to your coverage limits.

No-fault rules primarily apply to medical/personal injury coverage, not property damage. Property damage claims (including rental cars) often still follow fault-based principles even in no-fault states.

During the Investigation

In an at-fault state, the at-fault driver’s insurance pays for the rental car. If the insurance adjuster determines you are not at fault, they may provide a rental car immediately. It’s more common that you’ll need to pay out-of-pocket or request a car from your own insurer and ask for reimbursement later.

In a no-fault state, you may need to pay your rental costs upfront and be reimbursed after the insurer completes processing your claim.

Rental car expenses may be part of the property damage claim rather than the personal injury claim. It’s a good idea to have an attorney check your claim form before you submit it. In some states, you cannot request a property damage award in a personal injury claim, and vice versa.

If you must pay for your own rental car, keep all documentation related to the rental. Whether your own auto insurance policy or the other driver’s policy covers the cost, you must have proof of the expenses. Confirmation numbers, mileage, and even gas receipts are all needed for rental car reimbursement purposes.

Other Considerations for Rental Cars After an Accident

Depending on the type of coverage you or the at-fault party’s insurer has, rental coverage may be limited to a certain number of days or type of vehicle. For instance, an insurance company might cover a basic sedan, but if you want an SUV, the additional cost comes out of your pocket.

Use of a rental car may be part of your total policy limit. Some insurers may cover the entire cost of a rental car while your own vehicle is in the repair shop, but others may not. Be sure what your insurance covers before filing any claim.

Rental Car Insurance When You’re Already Renting a Car

If you’re involved in an accident with a rental car, such as during a vacation, you may wonder who pays for the use of a new rental car after you’ve lost the original one. It’s for these situations that rental car companies offer additional rental car insurance while you’re driving the vehicle. Rental car insurance may add some costs to your rental fee, but the expense can be worth it.

Rental car insurance may include:

• Collision coverage
• Liability coverage
• Personal injury protection
• Property damage coverage

If you’ll be driving the rental vehicle for any amount of time, the rental company’s insurance may be a good idea.

Get Legal Advice From a Personal Injury Attorney

If you’re involved in any kind of auto accident, you may need transportation after the crash. A rental car is the obvious solution, but who should pay is part of the claims process.

Insurance rules vary significantly by state. Even if the other driver is at fault, your insurance may not immediately provide rental coverage while fault is being determined.

Accident victims can find help from a personal injury lawyer in the area who can help negotiate for rental reimbursement coverage and other accident claims. They can help ensure you’re compensated not only for rental car costs but also for medical bills, lost income, and more.