Will auto insurance pay for a rental car after a car accident?

Auto insurance will pay for a rental car if your auto insurance policy includes rental reimbursement coverage. 

Rental reimbursement coverage is a type of insurance that reimburses you for the cost of a rental car while your damaged vehicle is repaired. Rental reimbursement coverage is optional and costs extra. 

Rental reimbursement coverage is usually inexpensive relative to your total monthly insurance payment. It can cost as little as a few dollars per month. However, many drivers choose not to purchase it because it is an extra charge.  

How long will the rental reimbursement coverage pay for me to have a rental car after a car accident?

The answer depends on your auto insurance policy. Insurance policies are contracts. The policy outlines the terms of the contract. Most insurance policies limit rental reimbursement coverage to around 30 days. 

What does rental reimbursement cover?

Again, the answer depends on your policy. Some policies limit coverage to “rental charges” and specifically exclude payment of fees or charges for rental car insurance, damage waivers, optional rental car equipment, gas, and accessories. That means if you purchase insurance on the rental car, your auto insurance will not reimburse you for it. 

Know what your policy covers before you rent a car, so you don’t end up with unexpected costs. You can contact your insurance agent or adjuster for help answering this question. 

Also, know when the rental reimbursement coverage ends. For example, some policies end at the earliest of: 

• When your car is returned to you
• When your car is repaired
• When your car is replaced
• A certain number of hours after the insurance company offers to pay you the total loss of your car
• After 30 days of rental charges

In other words, just because you have rental coverage for up to 30 days, doesn’t mean the insurance company will pay the rental charges for the entire 30 days. 

You should go over your auto insurance policy with an experienced personal injury lawyer to ensure you don’t end up paying out of pocket charges not covered by the policy.

If you have rental reimbursement coverage, know how to make a claim.

First, make a claim with your insurance company. Tell your insurance your car is damaged and you need a rental.

Second, if possible, get written confirmation of rental reimbursement coverage before renting a car. Your insurance agent may be able to provide this documentation in a letter or an email. 

Unfortunately, you may have to pay for the rental and seek reimbursement from your insurance. Many policies won’t pay until you “incur” (actually pay) the rental charges.

Third, get a receipt for your rental car payment. The insurance company will not reimburse you without it. 

If you have more questions about rental reimbursement coverage, please call or contact Conybeare Law Office now. 

The knowledgeable car accident lawyers at Conybeare Law Office will help you value your case and fight to get you the money you deserve. 

To learn more about the legal services offered to our Michigan car accident clients, talk to our office today. Conybeare Law Office has offices in Saint Joseph and Kalamazoo, Michigan, and serves all of southwest Michigan and beyond. Call or contact us for a free consultation. We look forward to talking with you. Remember, if it’s not fair, call the bear.