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If you’ve been in an accident or collision and your vehicle has sustained significant damage, it can be frustrating, especially if you’re unsure how you’ll get to work or other important places. Fortunately, rental cars are available to provide temporary transportation while your vehicle is being repaired. Understanding rental car costs, daily rates, and what if the other driver is uninsured are common concerns for accident victims.
In this guide, we’ll walk you through the process of securing a rental car after an accident, including the steps you need to take to ensure your insurance company covers the cost of the rental. We’ll also highlight common pitfalls to avoid, such as understanding your rental terms, dealing with policy limits and deductibles, and navigating the claim process to ensure everything goes smoothly. If your insurance denies your claim or disputes coverage, knowing how to appeal and what documentation is needed becomes critical.
DO YOU HAVE THE RIGHT TO A RENTAL CAR AFTER AN ACCIDENT?
In the landmark case Kopischke v. Chicago, St. P., M. & O. Ry. Co., 230 Minn. 23, 40 N.W.2d 834 (1950), a legal precedent and important case law, the court established the right for victims to request a rental car. The incident involved the defendant’s truck being stuck on a railroad crossing during a snowstorm. Although the defendant was not in the vehicle when it was struck, the train company was held responsible for negligence and liability.
The court ruled that the train company, as the party in charge of maintaining the railroad tracks and crossings, was liable for the damages, including property damage and loss of use. The defendant used the truck for his farm work, and the court ordered the train company to cover the cost of both the replacement vehicle and the rental car while awaiting the insurance payment. This established that the claimant could recover reasonable expenses for alternative transportation.
This case set a significant precedent, affirming the victims’ right to have rental car fees included as part of the settlement when an accident occurs. An experienced personal injury attorney can help negotiate these claims and protect client rights throughout the process.
WHAT STEPS SHOULD YOU TAKE TO GET A RENTAL CAR?
#1. Collect information from the defendant
After the accident, it’s crucial to gather all relevant information from the defendant. This includes:
- Driver’s Name and Address: Full name, current address, and contact details.
- Driver’s Insurance Company and Policy Information: Insurance company name, policy number, claims phone number, and any additional coverage details, including comprehensive, collision, and liability limits, to assess whether they have valid, full coverage or are uninsured or underinsured.
- Witness Statements and Contact Information: If there were any witnesses, collect their names, contact details (phone and/or email), and a brief summary of their statements about the accident. Witness testimony can be critical if the case goes to mediation, arbitration, or litigation.
Note: If you own a smartphone, take photographs and detailed documentation at the accident scene, including images of vehicle damages, the surrounding environment, road signs, and any contributing factors. These photographs serve as vital evidence that an adjuster will inspect and assess when investigating the claim.
#2. Contact your insurance company at once to let them know what happened
Many insurance companies today have mobile apps designed specifically for accidents. If your insurance company offers one, use it to quickly upload the data you collected at the scene, including the police report (if available) and the photos you took. The mobile app typically provides a checklist of documents you’ll need to submit your claim, making the process smoother and faster. The adjuster will then evaluate the damage and authorize or approve your rental car request, often through direct billing with a preferred vendor.
If your insurance company does not have a mobile app, you will need to go the traditional route and call them directly to report the incident and start the claims process. Be prepared to provide your estimate from the repair shop and discuss the per diem rate or daily rate for your rental vehicle.
#3. Contact the police
Insurance companies generally require a police report of the accident whenever possible. The police will typically determine the at-fault driver at the scene, which is critical for your claim. The police officer’s assessment becomes part of the official documentation that the insurance investigates when determining fault and liability.
If the damage is minimal or if your car can still be moved, you may be instructed to go to the police station to file a report. However, in some cases, you might not need a rental car if the car can be driven or if the damage is minor. Understanding how long it takes to get reimbursed and whether you need a lawyer for rental car disputes can help you make informed decisions.
A potential issue arises when a police officer deems the damage to be under $500 and does not file a police report. In these situations, the cost of repairs may be far greater, and the court will have to decide who was at fault, potentially delaying your rental car coverage. In disputed or pending cases, having a qualified car accident attorney who can litigate, testify, or depose witnesses becomes essential.
YOU’RE NOT AT-FAULT, HOW DO YOU PAY FOR THE RENTAL CAR?
Every accident situation is unique, but here are three common scenarios that outline how you can pay for a rental car if the other party is at fault:
#1. Other insurance company pays
In an ideal situation, the at-fault driver’s insurance company pays for your rental car upfront. This means you can go to the rental facility and pick up a comparable vehicle to use while your car is being repaired. The insurance may issue payment through direct billing, covering the daily rate and providing same-day service with unlimited mileage and a full tank policy.
However, the challenge is that some insurance companies may not pay for your rental car until the court officially determines who is at fault. This can create delays in getting the vehicle you need. If the insurance denies your claim initially, you may need to appeal or have your attorney negotiate and demand compensation on your behalf.
#2. Rental insurance
Check your own insurance policy to see if it includes rental car coverage. If it does, you can use your insurance to cover the rental car costs immediately. This extended coverage often includes a damage waiver and insurance waiver, protecting you from rental car damage responsibility.
In this scenario, your insurance company will then pursue the at-fault party’s insurance to recover the amount they paid for your rental through a process called subrogation, where your insurer seeks reimbursement from the liable party.
A key point to remember is that there is often a cap on the number of days your insurance will cover. Most policies provide rental car coverage for 30 days, but it’s important to verify the exact details in your policy. Be sure to check how much time your policy allows for rental car payments and whether there are any additional requirements. Ask about the maximum reimbursement amount, weekly rate options, and whether there are rental car mileage limits that could affect your coverage.
#3. Pay out-of-pocket
If your insurance policy does not include rental car coverage and the other company is not paying for your rental, you may need to pay out-of-pocket until the case is settled. Understanding rental car insurance requirements and whether you can choose any rental company or must use a preferred vendor is important for managing costs.
Be aware that this can take time, as insurance companies often delay payouts. They frequently wait for the court to determine who is at fault before reimbursing you. In cases involving comparative or contributory negligence, the insurance may dispute the claim or deny coverage entirely, requiring you to appeal or litigate.
To ensure you’re reimbursed as soon as possible, it’s crucial to document all rental car costs. These records can be used by an attorney to help you recover your rental expenses quickly from the insurance company. Keep all receipts showing the daily rate, any luxury vehicle upgrade costs, rental car tax information, and documentation of business use if applicable. A certified attorney with decades of experience can help you dispute rental charges and ensure you receive the actual cash value or replacement cost you’re entitled to.
AVOID THESE PITFALLS
Now that you have your rental car, it’s important to stay aware of common pitfalls that could lead to unnecessary costs. Understanding rental company policies, what size car you can rent, and alternative transportation options like rideshare reimbursement or public transportation coverage can help you make cost-effective decisions.
#1. Comparable vehicle
Insurance companies will only cover the cost of a comparable rental vehicle to your own. For example, if you drive a Hyundai sedan, you cannot rent a BMW i8 or Tesla X at the insurance company’s expense.
If you decide to upgrade to a fancier car, you’ll be responsible for paying the difference in price between the standard rental vehicle and the upgraded option. Make sure the vehicle you rent aligns with the make and model of your own car to avoid additional charges. The insurance limits liability to reasonable rental costs, so understanding the maximum reimbursement and approved daily rate is essential.
#2. Stop renting when they fix your car
Once the auto repair shop completes the repairs to your damaged vehicle, you need to stop renting the vehicle. After your car is repaired, the insurance company is no longer responsible for covering the rental costs. The mechanic will provide a final estimate and notify you when repairs are complete, at which point your rental coverage ends.
At the earliest opportunity, pick up your repaired car and return the rental. Continuing to rent a vehicle beyond this point could result in unnecessary charges that you would have to pay out-of-pocket. Be aware of the rental company’s full tank policy and return procedures to avoid additional fees.
#3. Stop renting when you receive an insurance check
If your vehicle is declared a total loss by the insurance company, they may continue to cover your rental fees until the settlement is agreed upon. However, once you accept the insurance settlement and the check is issued, you are responsible for covering any additional rental fees. The insurance issues payment based on the actual cash value minus the salvage value and your deductible. Understanding diminished value claims and how they affect your total compensation is important.
Be mindful of this timeline to ensure you’re not renting the vehicle longer than necessary and to avoid paying for extra days once the settlement is finalized. If you need to reserve a rental for an extended period while shopping for a replacement vehicle, discuss extended coverage options and whether the insurance approves this arrangement.
CAN YOU HELP ME WITH THE MONIES FOR MY RENTAL CAR?
If you’ve been in an accident or are experiencing difficulties with the rental car settlement, we’re here to help. Our experienced personal injury lawyers and car accident attorneys work on a contingency basis with no win no fee arrangements, offering free case evaluations with 24/7 availability. With decades of experience, a proven track record, and aggressive representation focused on client needs, our award-winning, AV-rated legal team serves as your trusted advisor throughout the entire process. Reach out to our office today at (760) 642-5475 for a free consultation. Let us guide you through the process and ensure you receive the compensation you deserve. Our attorneys will negotiate your settlement, file a lawsuit if necessary, and represent you in court to ensure you receive the compensation you deserve. We understand the family impact of accidents, employer transportation needs, and the importance of expedited service when you need alternative transportation.