If The Driver Who Caused Your Accident Has No Insurance But You Do
What if the driver who caused your accident doesn’t have liability insurance? Or, what if the at-fault driver has insurance but their insurance company will not admit that their insured caused the accident? In these situations, the best place to turn is to your own car insurance companyprovided that you have collision coverage and/or uninsured motorist property damage coverage.
If you have collision coverage, your insurance company will pay to repair your car, regardless of who caused the accident. In other words, collision coverage is a no-fault coverage. However, there is a certain portion of the costcalled the “deductible”that you’re responsible for paying. Let’s say you have collision coverage up to $20,000 with a $500 deductible . If it will cost $12,000 to repair your car, your insurance company will pay $11,500 and you will pay the deductible amount of $500.
So, can you get your deductible back? If the driver who caused your accident has no insurance and is financially unable to pay, it may be difficult. You can try to recover by suing that person. However, remember that getting a judgment against someone in court is not the same as collecting the judgment. To collect, the other driver must have something that you can “execute on” to collect your judgment.
Progressive Rental Car Reimbursement
Progressive also offers rental car reimbursement, which helps pay for a rental car while your vehicle is being repaired for a covered claim. Progressive will typically pay between $30 and $60 per day, for up to 30 days, toward the cost of your rental. You can find out how much this optional coverage will cost and add it to your policy using your policy number online, or by calling customer service.
Can Auto Insurance Reimburse You For Borrowing A Friends Car As A Rental Vehicle
If you borrow a car from a friend or family member, provided a receipt is available, the insurance company can reimburse you. This is called a cash out payment. If a receipt is not provided, the payment will be negotiated with and go to the vehicle owner.
The insurance company will require the vehicle owners social security number for tax purposes as this counts as business income.
Most customers provide a receipt proving they already paid and we issue a check to them in return. Also make sure the rental rate is consistent or below the prevailing cost to rent a comparable vehicle.
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Find Out If The Other Drivers Car Insurance Company Will Pay
If another driver is at fault for the accident, his or her insurance company may cover your rental costs. In this case, their insurance would pay for your rental car.
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Getting someone elses insurance company to pay for your rental might sound ideal, but theres one big downside. It can take a while. In some cases, it can take a few days or longer for the other drivers insurance company to investigate your claim. The process can drag out longer if determining fault in the accident is difficult, or if the other insurance company outright denies your claim.
Find Out If Your Auto Insurance Policy Includes Rental Reimbursement Coverage
The fastest way to get a rental car while youre waiting for a new vehicle after an accident is usually by going through your own auto insurance provider. However, not all policies automatically reimburse rental car charges related to an accident.
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Whether your personal auto policy covers the cost of a rental usually depends on whether your policy includes rental reimbursement coverage. This typically incurs an optional fee, which can be as low as a few dollars a month. It covers the cost of a rental while you are waiting on repairs or preparing to buy a new one.
If you didnt opt for rental reimbursement coverage, you may not be covered for a replacement rental car. Even if your insurance policy covers a rental car on vacation, it may not cover a rental car if your vehicle is out of commission.
This rental reimbursement coverage usually has a per-day limit for a certain period of time. For example, your policy may cover $40 per day for a month. At that point youd have to start fronting the additional charges yourself.
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Can You Add Rental Reimbursement After An Accident
Rental reimbursement coverage can be used while your vehicle is being repaired after an accident or another covered loss, not for routine maintenance or leisure. So, if your car is at the body shop after an accident , a rental car is covered up to your limit.
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If your vehicle was damaged, you may be entitled to rental coverage from either your or the at-fault driver’s insurance provider while your car is being repaired.
If the other driver is at fault, get the other driver’s contact and insurance information and call their insurance company directly to file a claim. Ideally, the insurance company will claim liability and provide a rental car promptly.
However, delays often occur. If you need your rental immediately, you may need to front the rental costs yourself or rent through your own insurance company, then seek reimbursement from the other driver’s insurer later.
If you’re at fault for an accident, or if your car was damaged in a non-collision event, your rental fees will only be covered if you added the optional rental reimbursement coverage to your policy. In that case, contact your own insurance agent to file a claim and manage the auto rental process. All rental coverage comes with daily and claim limits, so we recommend initiating your car repairs or replacement as early as possible.
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What Does Your Personal Car Insurance Cover
The insurance that covers your own car is the first line of protection to cover a rented vehicle. Never drive without insurance in California period, and its advisable to maintain car insurance in all other states as well. This gives you basic liability coverage for minor damages to a rental car you could cause to other people in an accident. If you do not own an automobile and, therefore, do not have vehicle insurance, you can and should buy a temporary or annual insurance policy from an insurance company. Such a policy should be reasonably priced.
In order to protect a rental vehicle, your personal insurance must also have collision coverage and/or a comprehensive coverage . Third party CDW insurance is additional insurance offered to someone renting a vehicle.
If you have any of these coverages, check the text in the small print to know exactly what the coverage involves, or call one of the representatives of your insurance companys customer service and ask the specific details of your policy.
Can I Get Compensation If The Other Driver Is At
If we can prove the other driver is at-fault, you can recover the costs you or your insurance paid for you to rent a car for a reasonable amount of time.
You can expect the other drivers insurer to put up a fight if you ended up needing the rental car for an extended period of time.
It is also important to note that insurance companies usually only pay up to a certain amount for rental cars. For example, many insurers will pay for a rental car for up to 30 days at $25-$30 a day. If you rent a Mercedes for 60 days, the other drivers insurer will likely only cover a small portion of that cost. This could leave you paying hundreds out of pocket.
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Pros And Cons Of Filing A Car Rental Claim With The Negligent Drivers Insurance Company Or Your Own
You will need to decide which insurance company to file a car rental claim with. The pros and cons of each that you should consider include:
- Your claim with your own insurance company may be processed more quicklymeaning you will have a car rental to use sooner.
- If you have car rental insurance, what is covered will be based on the coverage you purchased. Often, there is a maximum amount that your insurance company will pay per day for a car rental and a maximum amount of coverageor both. This could leave you with out-of-pocket expenses to try to recover from the negligent driver.
- Your daily car rental rate under your own insurance policy could be $30 or somewhere around there, which may not be sufficient to rent the type of vehicle you want.
- The negligent drivers insurance company is responsible for paying your car rental while your vehicle is being repaired or replaced. There is no fixed limit of days for coverage like under your own policy.
- The negligent drivers insurance company will investigate your claim more thoroughly before authorizing a car rental. You could be without a vehicle for a week or more while this process is completed.
If The Driver Who Caused Your Accident Has Insurance
Liability insurance covers damages for which a driver is legally liable. In car accident insurance lingo, property damage mainly means damage to your car. Therefore, your claim to have your car damage repaired will be against the other driver’s “property damage liability insurance.”
Almost every state has a law requiring drivers to have liability insurance, including property damage liability insurance. $10,000 is a common minimum coverage requirement for property damage liability insurance, but your state may have a different minimum requirement. And, of course, the at-fault driver might have more insurance coverage than the bare minimum.
So, since property damage liability insurance is usually required, the driver who caused your accident should have this kind of coverage in place. And if the driver’s insurance company agrees that its insured caused the accidentand is therefore liable for paying damagesthey will pay for your car repairs. .
Note that even in no-fault car insurance states, the driver who caused the accident will still be on the financial hook for vehicle damage and other property-related losses. That’s because no-fault only applies to car accident injuries, not vehicle damage.
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Main Causes Of Rental Car Accidents
The increase in the number of rented vehicles has grown immensely over the last decade, which inevitably leads to a growth in traffic accidents related to rental cars.
There are a few main causes of these accidents:
- Not making sure the rental car is in a good condition.
- Drinking alcohol or using drugs before driving.
- Not sleeping properly before you are about to drive.
- Not keeping a safe distance from the vehicle in front of you.
- Using the cell phone or anything that can distract you while driving.
- Ignorance of local traffic laws.
- Not knowing the surroundings.
When Progressive Rental Car Insurance Is Not Enough
If you rent a car similar in value to your personal vehicle, you probably have enough insurance. But if you decide to rent a luxury car and usually drive an old clunker, you might want extra coverage. You can get a collision damage waiver from the rental company, which leaves them responsible if the car is damaged or stolen. You may have rental insurance from your credit card company, too, if you decline the rental companys waiver.
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Why Might Using My Own Insurance Be Faster
Your own insurance will likely pay for your rental car regardless of who was at-fault. If you attempt to get the other insurer to pay for the rental costs, you might be waiting weeks or even months while your insurers argue about who is liable for the accident.
So, if you have rental insurance reimbursement, getting a rental car is as simple as filing a claim with your own insurer.
How Can You Get The Insurance Company To Extend Your Rental Car
Insurance companies have a list of reasons and tactics they use to shorten or cancel rental coverage. It is in their interest to minimize expenditures on a claim, and your damage adjuster is graded on how many days of a rental are used.
How can you get the insurance company to extend your rental car? Show the insurance company how they are responsible for repair or settlement delays. Your body shop can be waiting on the adjuster to re-inspect the vehicle or the total loss department to finalize paperwork. If these delays are their fault, they should extend your rental.
Here are some of the most common delays caused by the insurance company that supports they should extend your rental:
Here are some reasons that the insurance company will not extend your rental:
Preparing for a Long Repair:
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What The Fran Haasch Law Group Can Do For You
At The Fran Haasch Law Group, we focus on helping you and your family recover. We pursue personal injury lawsuits, and wrongful death claims to obtain full compensation for damages such as pain and suffering, medical expenses, lost earnings, property damage, and more.
With over 20 years of experience, we draw on constant legal and medical research to help clients recover after being injured in auto accidents in Tampa Bay and the surrounding areas. Founding personal injury attorney, Fran Haasch, is a lifetime member of the Multimillion Dollar Advocates Forum and a member of the American Association for Justice, the Florida Justice Association, and the Tampa Bay Trial Lawyers Association.
Our attorneys are skilled and experienced litigators. We are not afraid to take your lawsuit to trial if necessary. No matter how complicated your case, our firm is here to help you navigate the legal process from start to finish.
What If You Have Collision Coverage But No Rental Coverage
You will have to rent out of pocket in this case, but since you are filing through your collision coverage you are still eligible for the discounted insurance rate. Your out of pocket rental costs can be forwarded to the other insurance company by your claims adjuster for reimbursement.
Some insurance companies require that you submit the rental bill personally and not through your insurance company. They will try to reduce how many days for which they will reimburse you. Make sure you have a timeline of repairs showing no delays on your part so they cannot dispute your rental usage.
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Does My Insurance Pay For A Rental Car After An Accident
The short answer to this question? Maybe. According to the Insurance Information Institute, the answer often depends on several different factors, including what type of car insurance you have and the circumstances of your crash.
If you have rental reimbursement coverage as part of your car insurance package, the cost of renting a car after an accident should be covered by such insurance, regardless of who was at fault. Car rental reimbursement coverage also often covers other transportation costs if you cannot drive your vehicle after your accident.
Rental reimbursement coverage is optional and an extra premium on top of most car insurance policies. Car rental coverage also often has certain limits, including how much your insurance company will pay each day for a rental car and how long your insurance will pay for a rental car .
But just because you have car rental reimbursement insurance doesnt automatically mean that your insurance company will pay for a rental car after an accident. Some insurance companies can be very slow to respond when it comes to reimbursing drivers for a rental car.
You should also read the fine print in your insurance policy, which may place additional restrictions on your rental car. Sometimes, insurance companies want you to rent from a specific preferred rental car company. If you rent a car from another company, your insurance company might deny your car rental claim.
Does Collision Damage Waiver Cover Third Party Drivers
Car rental companies offer a wide variety of alternatives to secure a rental car. There is insurance that is necessary to take, and others that are optional, depending on the use that we are going to have for the vehicle, the budget we have and the personal tranquility we need when driving a rental car.
CDW and LDW
Collision Damage Waiver or Loss Damage Waiver insurances cover damages for thefts or accidents that we may have during the time of the rental of the vehicle. These insurances are offered with and without franchise. In insurance with franchise, the insurance company is responsible for covering up to a certain amount and after that amount, the difference is charged to the insured. In the coverage without franchise, it is the insurer that covers all of the damages.
You may be wondering: What does CDW insurance not cover? What does LDW insurance not cover? CDW and LDW insurance do not cover damages caused to third parties.
It is important to know that the coverage offered by insurers is void in cases where the person who rents the car has shown negligence in the use of the vehicle, which includes driving under the influence of alcohol or drugs, loading the wrong fuel, etc.
This additional insurance costs an average of $27-$30 per day when purchased directly at the rental companys counter.
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