Do Insurance Companies Pay For Rental Car Accidents?

Handling car accident cases can be a headache. Proving liability, gathering evidence, attending multiple hearings, all while battling with your own injuries and trauma from the accident, can be stressful. Situations become even more complicated when rental cars are involved. 

The law allows the victim to get compensated for their damages. But, can one get reimbursed for the repair costs if the vehicle is rented? When your rented vehicle suffers damages due to someone else’s negligence, it is only fair that the responsible party pays for it. A Lehi, UT car accident lawyer can deal with insurance adjusters and obtain compensation for your rental car repairs. 

Can you get compensated for rental cars in a car accident?

Yes. You can get compensated for your rental car if you have been in an accident. However, who is responsible for paying you depends on who caused the accident. 

If the accident were caused due to the other driver’s negligence, your rental car costs would probably be compensated using their car insurance. After the accident, you must immediately report it to the authorities and inform the insurance adjuster that an accident has taken place. The liable person’s insurance company should pay for your rental car repair costs as well as the cost of a new rental car for as long as the old car does not get fully repaired. 

However, remember that the insurance company will only pay for a rental car whose cost is equivalent to the vehicle being repaired. You cannot demand a luxury rental car if your old rental was a small sedan. 

Contrarily, if the accident was wholly or partially your fault, it may affect the compensation significantly. In the case you were entirely at fault, then your own car insurance will be used to pay for the repair and the cost of a new rental car. If you were partially at fault, the defendant would only pay some percentage of the damage. 

What if your car gets totaled in the accident?

Some car accidents can cause severe damages to a vehicle, to the point where it cannot be repaired for use again. This is commonly known as being totaled. If your rental car gets totaled after the accident, the insurer will calculate the vehicle’s value at the time of the accident and make a settlement offer. Keep in mind that if the insurance company pays the total cost of your rental car, they may not pay for your rentals for more than a few days. 

If you feel that the insurance company is not offering a fair offer for the totaled car, you can consult with a car accident attorney to determine the actual cost of the vehicle. 

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