Does Insurance Cover Rental Car After an Accident?
When a client's automobile is damaged in an accident, obtaining a rental car is a top priority. We understand how crucial it is to have transportation while your vehicle is in the shop, and our clients frequently ask questions about how to obtain a rental (and who will pay for it!).
The short answer to most questions about a rental car is: it depends on your automobile insurance policy, and it depends on who was at fault for causing the accident.
The majority of inquiries about renting a car can be summed up in the questions answered below.
1- Who pays for renting a car after an accident?
2- What if I don’t have rental coverage?
3- Has COVID-19 affected rental coverage?
4- What should I do if I decide to handle the rental process?
Who pays for renting a car after an accident?
If you have rental car coverage on YOUR insurance policy – meaning you specifically paid a portion of your insurance premium toward rental coverage – then your insurance company has a duty to secure a rental car for you in a timely fashion. This is true regardless of who is at fault. You paid for the coverage, so you get the rental car!
If you have this specific rental coverage, then your insurer should make rental arrangements as soon as your claim is opened. Your insurer will coordinate with a rental car company to put you in a suitable vehicle comparable to the vehicle you were driving.
The specific vehicle will, of course, depend on the availability of what is on the rental car lot. (If you were driving a Bentley, you may be out of luck!). But, the insurance company must make a reasonable effort to obtain a rental that is similar to your personal vehicle that is being repaired.
Your own rental coverage will pay regardless of who is at fault, and the amount of time needed to process your rental claim should be minimal. For these reasons, we highly recommend rental coverage if you can afford it.
What if I don’t have rental coverage?
If you do not have rental coverage on your own policy, but you were NOT at fault in the accident, then you should still get a rental car.
In Louisiana, the at-fault driver’s insurance company is obligated to secure a rental car for you within a reasonable time, and they must pay for the rental for as long as you reasonably need for your car to be repaired.
Most insurance companies have contracts with the major rental car companies (Hertz, Enterprise, etc.), so they will usually direct you to deal with whichever rental agency has contracted with that insurer.
Even if your vehicle ends up being totaled, we still insist that insurance companies provide our clients with a rental so that they have time to shop for a replacement.
While some insurance adjusters may argue that a rental car is not owed in a total loss situation (and even the Department of Insurance appears to be mistaken on this point), the case law provides that insurers owe a duty to pay for loss of use or a rental, even if your vehicle is totaled.
Has COVID-19 affected rental coverage?
Rental coverage is especially helpful during the COVID-19 pandemic, which has made it much more difficult to obtain a rental car on your own. Simply put, COVID-19 took a toll on the rental car companies. Hertz, for example, even filed bankruptcy during the pandemic due to less demand for travel.
The rental companies initially sold off many of their cars to generate revenue during the early stages of the pandemic. Now that travel has opened up again and the demand for rental cars has rebounded, all the companies are scrambling to buy new vehicles and rebuild their fleets. But, new vehicles are far more expensive now, due to shortages of computer chips that are essential to the manufacturing process.
To top it all off, the rental car companies are dealing with similar employee shortage issues that have affected many other industries. All of these problems lead to less supply, and you guessed it, higher prices. Experts estimate that it could be months, or even years before vehicle supplies return to pre-pandemic levels, so rental coverage on your auto policy may be more important than ever.
What should I do if I decide to handle the rental process?
If you decide to handle the rental process yourself, the first thing you should do is contact your insurance company to set up a rental (if you have rental coverage).
The assigned adjuster should provide you with a reservation number and where to pick up your rental car. If the adjuster tells you that they will reimburse you, make sure to ask if there is a per-day limit to the amount they will pay for a rental, a total limit on rental expenses, and/or a number of day limits that will be covered.
If you pay out-of-pocket and plan to be reimbursed, be sure to keep all receipts. You will need to provide documentation of your expenses in order to be reimbursed by your insurance company.
Give us a call for help in getting a rental car
Regardless of your specific situation, give Chaz Roberts Law a call, and we can set up a rental claim for you. We never charge a fee for handling property damage claims, and we don’t charge a fee for obtaining rental vehicles for our personal injury clients.
When you hire our firm to handle your personal injury case, we will also assist you with the rental process and property damage claim if you choose.
If you have questions about how to obtain a rental car or any other questions related to a car wreck, please give us a call at 337-504-3202. We are happy to discuss this – or anything else – during a free consultation.
