• Jun 07, 2023
• / by admin

Who Pays For Rental Car After An Accident Happens?

Renting a car for traveling or commuting purposes is very common today. However, renting a car comes with its set of responsibilities, including you must take care of the car to avoid any damage. However, you can't control every situation, and accidents happen. Having an accident is never easy, but the situation gets more complicated when a rented automobile gets damaged.

Suppose you have rented a car to head to your office, and on your way, your car met with an accident. Even though you or anyone else does not get seriously injured in a collision, it can damage the vehicle generating the need for repair. And with the need to repair arises queries like whether you are liable to pay for the repairs, how much you need to pay for repairs, and whether the renter will pay for the repairs or more. Thus, figuring out who pays for a rental car after an accident is important.

There are several conditions and rules that apply while paying for a rental car after an accident that you must know if you frequently rent cars for different purposes. Let's know everything you should about what happens when a rented car meets an accident and who is liable to pay for the damages.

What To Do When Your Car Rental Gets Into An Accident?

The situation of an accident can be a bit shaky and can put you in a bad situation. But there are a few steps that, if you follow timely, you can manage the situation and cover most of the loss. These steps include:

Gather Info From The Defendant

Firstly, you need to collect the details of the defendant, including:

• Name & Address of both the drivers
• Driver's Insurance providers and Policy information 
• Contact Info and statements of Witness
• Take a picture of the accident scene on your smartphone

Contact The Insurance Provider And Inform Them About The Accident

Most Insurance companies deal with their customers via mobile apps. So it's good to check first if your company has an online appearance. And then fill out an online form for filing requests. This form has blanks to fill in complete information, including police reports, contact details, collected photos, and more. And if your Insurance company doesn't have such a mobile app or website to file your request, you can directly call them for the same. 

Call The Police 

Insurance companies ask for a police report of the accident. The report from the police determines whose fault leads to the cause. If there is less car damage and you can move your car, it will be advised by your Insurance provider to go to the police. Because if your car is good enough to move, then you do not need a rental car. But if the accident has majorly damaged a car, then the case is handover to the attorney. It will determine who was at fault in the cause.

General Guidelines For Rental Car 

You should be aware of the fact that if your car is in a moving state and is safe to drive, the liable person will not pay rental expenses caused before the beginning of repairs. Rental reimbursement is provided in specific situations like when your car is damaged, Unsafe to drive, and Given for Repair. If your car has been majorly damaged in an accident, then the Rental reimbursement is provided for a certain time after the insurer makes a settlement for your loss. 

Who Pays For Rental Car After Accident?

The decision of who is paying for a Rental Car after the accident is quite simple once you figure out who is responsible for the cause. Whether it's you who is at fault or the mistake of another driver led to the accident, there are ways to handle the situation and pay for such situations. 

You are Responsible for the Cause

If it is found that you are responsible for the cause of the accident and the blame is on you. You have to contact your Insurance company and clear out the loss through your Insurance. While filling out the Insurance form, you ask to include the rental reimbursement in your insurance coverage. If you have chosen it, your Insurance provider definitely come forward to help you out on a monetary basis. 

But the insurance provider puts limits on the extent of timing and type of car you can rent. In addition, it probably has a limit of days the policy will cover your rental pays. If you rent a car for more days than has been mentioned in the policy, then it's on you to pay for all the loss.   

Another Driver is Responsible For the Cause

If you are not faulty for the accident but it's the other driver, then it's on him to clear all the loss. The cost of a rental car will be covered by his Insurance. The other person just has to call his Insurance provider and ask him for rental coverage while his car is at the shop after the accident. If the Insurance provider approves his claim, the overall loss of the rental car will be absorbed by his Insurance. 

Do keep in mind that the Insurance company doesn't provide any cost coverage for luxurious cars. If you drive a Sedan, you will be able to rent it at no cost to you. But the Insurance providers will not pay a premium for the SUV or luxury cars. 

What If The Insurance Company Disapproves Your Claim?

The First thing to do after an accident is to file an Insurance claim. We claim the Insurance and request a rental car when we know the fault is not ours. But there are times when your Insurance company denies your claim and does not provide Insurance. What do you think you should do in such a situation?

The Insurance Company seeks reasons to disapprove your file. Their prime goal is to keep as many bucks in their pockets as possible. It definitely sounds not good for the person who has rented a car and now also paying for the fault he hasn't done. Though the decision of the Insurance company can be discussed and resolved, it is worse as a situation as it takes months to clear that.

In such situations, it's good to waste no time and hire a car accident lawyer. A good attorney will be your back and help you communicate with the Insurance company back and forth. It will help you determine who will finally pay for the loss and guide you to the best path forward.

What If The Fault Is Disputed?

Sometimes a situation occurs when you don't have any rental insurance, and the other driver is not agreeing to pay for the rental. In this situation, you have to pay out-of-pocket till the case resolves. You should keep in mind that Insurance companies intentionally delay payouts and often wait for the court's hearing before reimbursing you. Thus, it's important to file all your rental costs and get your money back with the help of an attorney as soon as possible.

Why Using Own Rental Insurance Be Faster?

Your Insurance company can pay for the loss or damage of the rental car regardless of whose fault led to the accident. Suppose you depend on the other insurer for the payment. In that case, it will make you wait for multiple weeks or even months as the other person can argue about the liability for the accident. So if you have rental reimbursement, getting a rental car and filing a claim with your insurer is convenient.

Is your rental car gets damaged in an accident? Or are you facing trouble in its settlement? Wait no more and straight call up your Insurance provider for a hand in the situation.