The insurance company of the “at-fault” driver should pay for you to rent a replacement car while your car is being repaired. Keep in mind that Dealing with your own car insurance company after a crash can be very time-consuming. Most consumers consider this to be a simple issues but in most cases — it ends up being a very large hassle. Now imagine what it's like to deal with the insurance company of a person - that hit you — who is at fault. Understanding the rules around rental reimbursement after an accident is very important. Keep in mind there are very important steps that you should take after an accident (see our earlier post and 17+ Step Guide).
Expect a Rental Reimbursement to include a “reasonable replacement” - not a Ferrari after an auto accident
The insurance company will only pay for what it considers a reasonable replacement. You can expect the other parties insurance company to provided you with a rental / replacement vehicle while your car is being repaired. Replacement vehicle means a “car for your usage” while your car is being repaired. You are likely to get a vehicle of your choice or expect that your strong preferences will be considered. Keep in mind, this is the not your insurance company (who wants to keep you happy) that is footing the bill for this rental expense. When making a 3rd party claim (and you are not representing by an Attorney) there are several factors to consider and several steps that you may have to take.
For instance, the insurance company won’t pay for you to rent a Ferrari (unless you were driving a Ferrari, that is!). Most insurance companies will only pay a certain amount per day for rental car coverage ($25 and up depending on the insurance company and the type of coverage that the at fault driver elected).
Separating the Insurance Companies Policy from the Insurance Companies Rental Car Policies
The rental car company may have additional requirements for rental such as, a credit card or to purchase daily insurance if your personal automobile insurance policy does not have collision coverage. The Rental Car Company may also require a deposit. The rental car company policies are separate from the at fault drivers insurance company. The Insurance Companies and the Rental Car Companies policies should be viewed separately.
In addition, Car Rental companies will offer insurance policies on their vehicles during the rental period.
Using your own insurance after an auto accident
Questions about who is at fault could cause delays in the the “At Fault Drivers” Insurance company agreeing to pay for a rental car. Because you likely need transportation to maintain employment or to continue on with life you may consider accessing the benefits of your own personal insurance policy to obtain a rental car.
If the other driver doesn’t have insurance or you choose to submit your property damage claim to your own insurance company, your insurance company may pay for you to rent a replacement car provided your insurance policy has rental car coverage.