Do Insurance Companies Pay for Rental Cars?

A car accident can have unfortunate ripple effects throughout all aspects of your life. After an accident, you’re probably dealing with recovering from injuries and the hassle of making a claim for damages against your own insurance policy or the insurance of the person at fault for the accident. On top of everything else you have to consider in the aftermath of a car accident, wondering how you’re going to get to work or to your medical appointments following a car accident can be concerning when your car is out for time-consuming repairs.

If your car sustained significant damage in a car accident, it pays to look over the terms of your insurance coverage or that of the person at fault for the accident. Some coverage plans include the cost of a rental car while your vehicle undergoes repairs after an accident or until you’ve been reimbursed for a totaled vehicle.

Who is Responsible for Paying for Your Rental Car After an Accident?

Car repairs after an accident can leave you without transportation just when it’s critical that you have a reliable way to get to your accident-related medical appointments and get back to work to minimize the financial impacts of the accident on your family. If you were at fault for the car accident, your insurance policy may cover the cost of a rental car while your vehicle is out for repairs.

If someone else caused the accident, they bear liability for damages through their insurance policy in at-fault insurance states like Washington. The injury victim must prove liability before filing the claim. A Seattle car accident attorney can help gather evidence from the police report, eyewitness testimony, and traffic camera video to prove liability for both property damage and personal injuries.

In many cases, the at-fault party’s insurance coverage will pay for a rental car for you throughout the time that your vehicle is out for repairs. Even a relatively mild fender-bender may leave your car with significant damage and lengthy repair jobs. A rental car helps to minimize inconvenience to you and your family while you wait.

What if the At-Fault Driver’s Insurance Doesn’t Cover a Rental Car?

The at-fault party in a car accident is responsible for paying for your rental car while your car is in the repair shop or while you wait for a payout or replacement vehicle if your car was totaled in the accident. If their insurance doesn’t provide this coverage, you can make a request for a rental car from your own insurance policy.

In most cases, your insurance will provide payment for a rental car of similar value to your damaged vehicle. Later, your insurance company may argue for reimbursement from the insurance company of the party at fault.

What if the At-Fault Driver’s Insurance Covers a Rental Car But I Don’t Need One?

If you find that the insurance company of the party at fault for your accident covers a rental car but you don’t need one because you have a second vehicle, you can cash out the coverage for a rental by giving you a check for the approximate amount based on the daily cost of a car rental for the amount of time your car is expected to be in the repair shop.

Cashing out on this coverage can provide a substantial amount of money that can help mitigate other accident-associated losses while you await compensation for your damages.