How long will insurance pay for a rental car after an accident? After an accident, insurers typically pay for a rental car for up to 30 days while your mechanic repairs your vehicle. If they plan to total the car, the insurance company may cover the cost of a rental until you reach a settlement.
In most situations, your car insurance policy defines how much coverage you have for rental cars after an accident. Speak with a Salt Lake City car accident lawyer from Siegfried & Jensen to discuss your case.
Determine If Your Insurance Policy Covers a Rental Car After an Accident
How long will insurance pay for a rental car after an accident? First, determine whether your policy includes rental car reimbursement coverage. This depends on several factors, including the following:
- Did you include rental coverage when purchasing your policy? Rental car reimbursement isn’t always part of your coverage. It is not automatically included in a standard policy. If you did not purchase it prior to the accident, you may not have coverage.
- Did someone else cause the accident? Depending on your location, this could matter. If you are in Washington State, for example, the at-fault driver must pay for your losses, and your car rental costs should be covered. If you are in Utah, a no-fault state, your PIP coverage may pay for a rental car in some cases.
- Do you have comprehensive coverage? If you were at fault for the accident, or it is covered under your comprehensive insurance coverage or collision insurance, you may be able to file a claim. However, rental insurance reimbursement is typically not available if you only have liability coverage on your car in an at-fault state.
This can be confusing, especially if the insurance company is unwilling to provide clarity on your coverage. In matters in which you are dealing with injuries or losses caused by an accident, it is wise to speak to a Siegfried & Jensen car accident lawyer to determine what type of claim is best suited for your situation.
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How Long Insurance May Pay for a Rental Car
Once you know you have coverage for a rental car after an accident, the best way to know how long the policy will protect you is to read the terms and conditions. If you are filing a personal injury claim against another party, it is less likely that you will be denied rental car coverage. You can include those losses in your claim against the at-fault party.
Insurance companies typically cap how much they pay per day for rental car coverage, or they may cap the amount they pay per claim at a set dollar amount. Sometimes they will limit the number of days they will provide coverage. Often, the per-day rental reimbursement value is capped at a dollar amount or set as a percentage of the per-day rental cost. These differences can make it confusing to know how long you have to get into a new car or get your own vehicle repairs completed.
Most often, your coverage ends the day your car repairs are complete, even if you do not return your car that day. For example, if your mechanic makes repairs on a Friday and completes the work, coverage ends Friday, even if you do not pick up the vehicle until Monday. You may be responsible for costs beyond that timeframe. Make sure to clarify with your mechanic what they expect so you can plan ahead.
Repair or Settle Decisions and Rental Car Impact
Rental car coverage typically ends when one of two things happens. Most commonly, coverage continues for about 30 days or until your vehicle repairs are complete (Rental Car Reimbursement Coverage). If no repairs are being made due to the extent of the damage, the rental reimbursement continues until the insurance company settles what they owe you with you.
The insurance company typically decides whether to pay for repairs or replace the vehicle as part of a settlement. They typically focus on the car’s value and the cost of repairs. If the cost to repair it is too high and it is more affordable for the insurer to simply total the car and write you a check, they will do so.
Remember that the insurance company does not have to pay the amount you owe on the car if you are still carrying a loan, but rather just the value of the car prior to the accident. If you owe more on the car than the insurance company settles with you, that can become a financial loss. You may remain responsible for any loan balance that exceeds the vehicle’s settlement value. This is another important reason to work with a car accident lawyer from Siegfried & Jensen to secure the highest possible value in your case.
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When May the Insurance Company Cover Your Claim Longer?
There are situations in which the insurance company may offer car rental coverage for a longer period. For example, if repairs are affordable but will take time, the insurance company may cover your rental car for extra days.
They will always consider what is most affordable to them, unless you prove that they should pay more to you. Remember that liability in the accident and the type of insurance you have also play a role in what the insurer ends up paying you.
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Hiring an Attorney Can Help You With Your Rental Car Costs After an Accident
When the insurance company challenges your right to compensation for car rental costs, or you are unable to seek financial compensation you believe you are owed, speak to our local attorney. At Siegfried & Jensen, our car accident lawyers determine what all of your losses are and then work to maximize the claim.
Insurance companies may not always provide you with fair compensation or what they owe you. Let our team review your claim during a free consultation to learn more about what they really owe you for the losses you have.
Call or text (801) 266-0999 or complete a Free Case Evaluation form
