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(512) 910-2000Written by TK Injury Lawyers, reviewed by Trent Kelly on November 8, 2023
Car accidents can present unique challenges that may require a rental car while your car is being repaired. You may wonder if your insurance will cover the cost of a rental car while your vehicle is in the repair shop. If you have a rental reimbursement plan, your insurance may pay for the rental car during repairs after the covered loss, not routine maintenance. A liable party’s insurer should also cover these costs.
At TK Injury Lawyers, we’ve helped individuals navigate the issues of insurance policies in such situations. Our legal team can demystify these matters to understand better what qualifies for rental car reimbursement. Here, we delve into the coverage for rental cars during repairs and shed light on the factors that can make all the difference.
The question of whether or not the insurance may pay for a rental car during repairs boils down to the type of policy you purchase. If you fully understand different policies, you will then be able to understand your rights and options in the context of rental cars and repairs after an accident. Different policies include:
Our lawyers advise car owners to clearly understand these different auto insurance plans before their vehicle needs repairs. This is because having the right insurance plan may save on rental car-related costs.
Rental reimbursement coverage, often referred to as rental car reimbursement, is an optional provision in many auto insurance policies. It is designed to provide financial assistance when your vehicle is in the repair shop due to a covered loss, such as an accident. Essentially, it helps cover the cost of renting a replacement vehicle while your car is out of commission.
When you have rental reimbursement coverage, you can typically request reimbursement for the cost of renting a vehicle during the repair period. The process involves:
Additionally, rental reimbursement coverage often comes with certain limits and restrictions. Policies usually specify a daily limit for rental reimbursement. For example, if your policy limit is 30/800, they might cover up to $30 per day and $800 per claim.
There’s often a maximum number of days or a maximum dollar amount that your policy will cover for rental reimbursement. Most large insurance companies may allow coverage for up to 30 days.
A car accident lawyer can help you review your policy documentation to understand the exact limits and restrictions that apply to your rental reimbursement coverage.
You should understand the circumstances in which your insurance might cover a rental car. This ensures you are well prepared to navigate the insurance claims process and you don’t have unrealistic expectations during challenging times.
In accidents where you are at fault, your liability coverage typically does not extend to cover the cost of a rental car for you. Liability coverage primarily focuses on covering damages and injuries you may cause to others. However, your insurance company may offer optional add-ons like rental reimbursement coverage, which can be purchased separately to cover rental expenses.
When you are not at fault for the accident, you may have a better chance of your rental expenses being covered. In this case, the at-fault driver’s liability insurance should be responsible for covering your rental car costs. However, the process can be complex, and it’s advisable to work with an attorney to ensure you receive fair compensation.
In incidents like theft or vandalism, your comprehensive insurance policy may come into play. Comprehensive coverage typically covers these non-collision damages and may also include provisions for rental car reimbursement. As with any scenario, you need to understand the terms and limits of your policy to determine if rental reimbursement is included.
When renting a vehicle, be aware of the distinctions in insurance coverage between your credit card company and auto insurance provider.
For example, many credit card companies, such as AMEX and MasterCard, offer a Collision Damage Waiver (CDW) as a complimentary benefit when you use their card to pay for the rental. This waiver can cover damages to the rental car resulting from a collision. However, it’s important to note that CDW provided by credit cards might not offer the same level of coverage as your auto insurance’s collision coverage.
Notedly, credit card CDW often excludes coverage for luxury cars, trucks, and exotic vehicles. Understanding this makes you decide on the right rental car replacement to go for as per the coverage policy.
Weigh these factors carefully in order to make an informed decision based on your unique circumstances. Ultimately, whether or not to include rental reimbursement coverage in your auto insurance policy should align with your specific needs and preferences.
The timeline for using your car insurance to pay for a rental car in Austin can vary depending on your insurance policy. Generally, you can start the process as soon as you report the accident to your insurance company.
The duration for which insurance will cover a rental car after an accident depends on your policy terms. Typically, it covers the rental until your vehicle is repaired, replaced, or reached the policy’s maximum rental period.
The responsibility for covering the cost of a rental car after an accident in Austin depends on the at-fault party’s insurance. If you’re not at fault, the at-fault driver’s insurance should cover your rental expenses. If you are at fault, your own rental reimbursement policy will cover the cost.
Rental car coverage is a valuable add-on to your auto insurance policy. When accidents strike, it offers peace of mind since you can get a rental replacement during repairs. However, it’s not always easy to understand the specifics of auto insurance policy, which may make it hard for you to navigate the claims process.
A car accident attorney from TK Injury Lawyers can help you make sense of your policy and ensure that you receive proper coverage tailored to your unique circumstances. We can also help protect your rights and interests during challenging times. Contact us today for a free and confidential case review.
Trent Kelly obtained his law degree from the University of Arkansas in 2007. He is licensed to practice law in Texas and regularly assists clients with their legal matters. Trent’s practice is primarily focused on personal injury matters – particularly those involving motor vehicles (such as cars, commercial trucks, 18-wheelers, and motorcycles) and wrongful death – but he also handles various business litigation matters as well. Click here to take a look at some complex cases Trent has resolved.
Years of experience: +15 years
Location: Austin, TX
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