Who Pays for Car Rentals After a Collision?

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A collision can make your vehicle undriveable, but you still need to go about your life. Getting to work, running errands, and more may require you to rent a car. But who is responsible for paying the cost of car rentals after a collision?

After an automobile accident, all involved parties begin the stressful process of repairing any damages to their cars and receiving medical treatments for the injuries they may have incurred. There are just under 200 car accidents per day in the Atlanta area, with a large number of these accidents resulting in serious car damages that cause them to be unusable for a while. Some minor car damages can be fixed within a day, but other damages may take longer to repair and leave the individual without their primary form of transportation for a period of time. When this happens, many people decide to rent a car until their car is running again.

When someone’s car is badly damaged in an automobile collision and the individual needs to rent a car, who is responsible for paying for it?

In most cases, the at-fault party is responsible for paying for the rental car while your car is being repaired. This is typically paid for through their insurance company and done through filing a claim with the insurance company. In some cases, an individual may decide to file a claim through their own insurance company and request a rental car through them as well.

If an individual is at-fault for the accident and in need of renting a car while their car is being repaired, the coverage for the rental car will depend on your insurance coverage. The fees for your rental car will only be covered if you have “rental reimbursement coverage” added to your policy.

In some automobile collisions, the determination of fault takes a while to decide. During this time, individuals may need to rent a car immediately and can’t wait for the insurance companies to decide who is at fault. In this situation, the individual may choose to pay for the rental car out-of-pocket and seek reimbursement retroactively.

In all cases, it’s important to remember that the rental car must be of similar value and type as the vehicle that is being repaired. This is because insurance companies will only pay for “reasonable” expenses, which in the case of a rental car is a car of similar value.

What is rental reimbursement coverage?

Rental reimbursement coverage helps cover a rental car’s expense if you are involved in a covered accident and your car needs repairs. It is an optional coverage with most insurance policies and can be relatively inexpensive. Rental reimbursement coverage will pay for the cost of a rental car while your car is being repaired in the following circumstances:

1. You are at-fault for a collision with another vehicle

2. You crashed into a stationary object

3. You hit a wildlife animal on the road

Insurance companies require that the rental car is of similar value to the car being repaired. The coverage only covers the cost of the daily rental fee and not the gas or security deposit. Individuals may choose any rental car company; however, some insurance companies partner with specific rental car companies to make the billing process easier.

Get help after an accident in Atlanta, GA.

Filing a claim with an insurance company after an accident to pay for the rental car you need can be a complicated process, especially if the insurance company refuses to admit fault on behalf of their client. That’s why you need a strong Atlanta car accident lawyer on your side to fight on your behalf and get you the compensation you deserve.

Lamar Law Office is a trusted personal injury law firm in the Atlanta, GA, area that helps individuals after they have been involved in a car accident. Our team is full of experienced professionals who love assisting clients to learn more about their rights to compensation. For more information about your rights after a car accident in Atlanta, call our office at (678) 819-5200.

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